Consumer complaint received 2017-05-19
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Caliber Home Loans, Inc. (TX)

To whom th
is may concern, We would like to file a formal complaint in the origination of our loan process by Caliber Home Loan. When we ( husband an
d I ) found a house and made an offer (XX/XX/XXXX ), we decided to go with the renovation loan since Caliber provides the products and there were not enough time to shop with other lender.
We were told by the loan officer that the loan will appraise and hold its value. At the time we were thinking ~XXXX. The loan officer later told us that she estimated the value to be between XXXX  XXXX. The purchase price was XXXX with renovation estimated XXXX + 10 % contingency fund and fees =~ XXXX We were not told that we need a HUD inspection so we hired an independent inspector to inspect the property onXX/XX/XXXX. We later received an email with the HUD consultant requesting for inspections. I contacted the realtor agent and she confirmed with the loan officer that we did not need an independent inspector. At this point we have paid for 2 inspections ( HUD XXXX on XX/XX/XXXX ) and Independent ( {$290.00} on XX/XX/XXXX ). XX/XX/XXXXwe received a disclosure from the Lender and signed the documents for the estimated closing cost ( {$17000.00} ). We were told its not the final but will need the signature to proceed the process. We signed and returned to the lender. The interest rate was not locked so we requested additional information. On XX/XX/XXXXwe received another disclosure with the interest rate locked and the estimate closing cost of {$18000.00} which have not yet subtracted our credit.
Again, it was not final and were told we need to sign the document to proceed. This was before the actual appraisal amount came in.
We were told to select construction bidding and the remodeling company so that Caliber can process an approval for the contractors. We did all that ( had remodel bidding done XX/XX/XXXX ) before the actual appraisal was completed. We received another disclosure on XX/XX/XXXX but it was an incorrect disclosure. We informed the lender since the disclosure letter hasXX/XX/XXXX date on it. On XX/XX/XXXX - same disclosure was sent. Again we communicated with the lender and was told to ignore the documents, and will have another disclosure. We were still being ensured that the appraisal will up hold the estimated value of the comps properties presented. OnXX/XX/XXXX- we received the invoice for the appraisal and paid the amount of {$500.00}. OnXX/XX/XXXX- My husband called the lender to ask if we should wait for the appraisal figures to come in before we have the contractor come to the property to measure the cabinets for the kitchen. He was told to go ahead, the appraisal will come in. After the conversation with the lender, we met with the contractor to proceeds as usual.
So many times the lender ensured that the appraisal will up help the estimated value. It did not, yet the loan officer did not share the information. After not hearing back from the loan officer for a while, we called the lender to get information. She then sent my husband the actual appraisal documents but did not explain the documents. After talking to my husband, I called to request an update of our loan process and was told that the actual appraisal did not appraised to the amount estimated and that shes trying to present other comparable to the appraiser. On XX/XX/XXXX, via an email, the lender told us that she waiting for the appraiser for additional comps and appeal the appraisal. XX/XX/XXXX- The lender requested more information on proof of incomes to proceeds with closing. At this point, we are still waiting on the appraisal to come back with additional comps. We provided the information ( including 401K statement that was requested ). We mentioned to the lender we will not be using the 401K in this process. On XX/XX/XXXX-We were told, no problem and are on track for closing. On XX/XX/XXXX- We received an email from the lender that stated that we have been approved for the loan. Waiting on the review of the appraisal which would come the following week.
We called to discuss the number as requested by the lender. OnXX/XX/XXXX, we contacted the lender telling them we have not received any emails regarding an approval. We were told that it is coming and still waiting on the appraisal. After the exchange of the email conversation, we mentioned our concern that the comps will not up hold because the house down the street has dropped XXXX from their list price.
On XX/XX/XXXX afternoon, we received a disclosures with new and increased estimated closing cost for the loan ( {$21000.00} ). We signed. We were told that all of the credits had not been accounted for so it would be less. On XX/XX/XXXX- The lender informed us that the appraiser did not hold and it came under the estimated price and the increased of the closing cost was due to the appraisal amount coming under than estimate. I requested all of the documents of the loans from the lender up to date as of XX/XX/XXXX.
When the lender send us the documents on XX/XX/XXXX, the comparable properties used to compare our purchase was almost 100K over our purchase price, they are newer, one of them was 1000 square foot larger and all have partial or full update. Im not an appraiser but by looking at the comps, I would have to agree with the appraiser. Our house was not updated at all, smaller and 15 years older than the comparable properties.
Because it was already too late for us to back out of the loan as we have passed the date to withdraw. If we walkout on the loan, we will default in purchasing the home and will lose our deposit to the seller and the out of pockets fees we have already paid. In addition, we will have to pay the realtor agent the 3 % of the commission of the house sold price, which would have been collected from the seller after closing. The estimated lost would have been ( XXXX  Earnest money + XXXX ( appraisal ) +XXXX ( HUD inspection ) +XXXX ( independent inspection ) + ~ XXXX for realtor commission ). In addition, we may be sued by the Seller for breach of contract to purchase.
We went ahead with the loan process since we are in too deep at this point. We provided all documents to the lender to proceeds with closing and just want to complete the process at this point ( XX/XX/XXXX ).
OnXX/XX/XXXX, we received a new disclosure with new estimated closing cost of {$16000.00} which now have included the estimated credits. We signed and returned to the lender. We addressed via phone conversation to the lender that it seems we are missing additional credit for our appraisal and inspection. We were informed my lender that it will be recalculate again and the closing cost will be estimate closer to 15K Our Closing is scheduled for Friday XX/XX/XXXX, as of XX/XX/XXXX, we have not received the disclosed documents for the closing amount. We emailed the lender and inform them that it is due on that day for our review per CFPB ( UDAAP ). Around XXXX XXXX XXXX, we received an email stating the file is stuck in the computer and IT is working on it.
XXXX XXXX XXXX Loan officer called, told us that our closing cost has increased fromXX/XX/XXXX documents of estimated {$16000.00} to {$23000.00} and some change. This is 2 days before our closing date! We have not received additional disclosure.
We requested an explanation but only got as far as the appraisal does not up hold. We told them they had the appraisal for at least 3 weeks.
We tried to work with the seller to drop the price but seller can not agree, they had done every right. As a buyer I agree with the seller as well.
On XX/XX/XXXX- We received a new disclosure from the lender with an increase estimate closing cost of {$65000.00}. We did not received a notification that this was sent in error.
Regardless the outcome of the final closing amount, my husband and I are obligated by the buyer seller contract to purchase the house or risk being sued by the seller.
I have documented all of the email and conversation regarding the process. If anyone need additional information on this process, I will be happy to provide.
I hope my complaints will escalate to review and re-evaluate the loan origination process for future consumers using Caliber Home Loans as their lender. I 'm sadden to think how many more people have been deceived, misinformed, miscommunicated or misrepresented by this process.
Thank you,