Consumer complaint received 2018-08-09
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Shellpoint Partners, LLC (PA)

ISSUE : We believe we have been incorrectly charged {$3600.00} for a fee that was not disclosed to us as our fee to pay. 
Shown in all the documentation of emails and loan forms below, we contest that we were never informed that we would be paying either Points or a Broker Fee. 
If the rate structure for the 4.25 % had been dependent on a discount point structure when the initial LE was issued and the rate was still floating, it should have been estimated on the Initial LE. If we were paying for the Broker Fee, it should have been disclosed that way on the Broker Fee Acknowledgement and Initial LE. We were told we were paying {$890.00} Origination Charge, {$340.00} Administration Fee and {$550.00} Underwriting Fee No Points, No Broker fee. 
We should be refunded the {$3600.00} charged to us at Closing for Broker fee since we were under the understanding this fee would be paid by XXXX XXXX to XXXX XXXX at the closing, NOT by us. We continued with the closing and disbursement because we needed to restructure our debt and going to another company at that point was not feasible. 
This is a timeline of selected events in the lifespan of our application to closing. There is a pack of paper copies of emails and loan documents with some notations and highlights, kept in chronologic order. 

Chronology : XX/XX/XXXX Contacted XXXX XXXX at XXXX XXXX to make application for refinance. 
XXXX  XXXX created Initial LE with {$890.00} Origination Charge, {$340.00} Administration Fee and {$550.00} Underwriting Fee, No POINTS XX/XX/XXXX Got confirmation from XXXX XXXX the loan had been locked at 4.25 % and was no longer floating. 
Email copy from XXXX XXXX that Loan locked 4.25 % for 45 days per Lock Confirmation. No mention of Points. 
We signed Initial XXXX electronically XX/XX/XXXX Received emailed Mortgage Broker Fee Acknowledgement from XXXX XXXX that states Option 2 : The Mortgage Lender Will Pay the Broker Fees. And that fee is Broker Origination 2 % of Loan Amount, not to exceed {$10000.00}. Amount of fee {$3800.00}. Physically Signed and returned form to Broker. 
Received email confirmation from XXXX XXXX at XXXX XXXX that I will not be charged for the broker fee and its not coming from me. 
XX/XX/XXXX Appraisal report received with lower than expected value {$180000.00} Received Rate Lock Agreement from XXXX XXXX through DocMailer Email, seemingly for the reduced loan amount to {$160000.00}. This showed XXXX with XXXX points. We signed electronically and returned the form XX/XX/XXXX email from XXXX XXXX we are approved and needed some conditions cleared up. 
XX/XX/XXXX Another LE was received by us and this one showed changes in Closing Cost Details of an origination charge of {$3600.00} and the other fees in section A removed. I questioned this issue with XXXX XXXX at XXXX XXXX in an email. 
XXXX response was To clarify, that the {$3600.00} is something that we have to show on the LE to reflect the broker fee expressed in a dollar amount. This has already been built into the pricing and is just needed to reflect that on the LE. 
I sent a reply to XXXX quoting CFPB XXXX ( f ), commentary ( 2 ) Indirect compensation from the lender to the originator is not disclosed on the Loan Estimate, but rather is disclosed on the Closing Disclosure. However, direct compensation to the loan originator from the borrower is disclosed on the Loan Estimate. 
XXXX forwards email and issue to XXXX XXXX, his supervisor. 
XX/XX/XXXX XXXX emails to assure me XXXX is trying to contact XXXX XXXX about this issue. 
XX/XX/XXXX Talked with XXXX XXXX on phone about issue. 
XX/XX/XXXX Initial Closing Disclosure issued. Still has contested fee on it. We made mention that we were on vacation the week of XX/XX/XXXX, away from home. 
XX/XX/XXXX XXXX states he is waiting for clarification from XXXX XXXX and that if the rate lock expires, XXXX XXXX would pick up charges. 
XX/XX/XXXX XXXX sends me email with copy of first Rate Lock Agreement from XX/XX/XXXX. He sends me some kind of justification for where the fee was being paid and that it didnt affect us. He asks us to sign the initial CD. 
XX/XX/XXXX XXXX says, the account manager of my files says DO NOT go in and esign the current CD. ( we never received whatever this was ) XX/XX/XXXX Final Closing Disclosure at closing. Still has contested fee on it. 
XX/XX/XXXX I send XXXX another email saying were still paying a fee we were not aware of. He says XXXX look into it. 
XX/XX/XXXX I tell XXXX the issue is still not resolved. 
XXXX states he was informed by XXXX XXXX the {$890.00} issue was resolved. He will check on it. 
XXXX says the {$890.00} was removed.