Consumer complaint received 2017-09-15
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: JPMORGAN CHASE & CO. (TX)

We applied and received a mortgage from JP Morgan Chase. Because of the amount of our down payment ( 20 % ), we elected to opt out of an escrow account and notified Chase that we wanted to pay our own taxes and insurance expenses. On XXXX/XXXX/XXXX, our preliminary closing disclosure that was sent by Chase was correct in that it stated the mortgage was not to include an escrow account and with our closing costs, our cash to close would be {$76000.00}. Our closing date was delayed and finally scheduled for XXXX/XXXX/XXXX at XXXX XXXX and I was notified via text message at XXXX XXXX that we would need {$83000.00} to close at XXXX XXXX that day. When I received the final closing disclosure at XXXX XXXX I saw that the cause of the discrepancy was that Chase changed our final disclosure and included the escrow account and was requiring the added amount to the down payment. I immediately contacted our mortgage banker, XXXX XXXX, who acknowledged the error, but also threatened that if we did not pay the full amount of {$83000.00}, then we would not be able to close for 2 more days, and our interest rate would expire on XXXX/XXXX/XXXX, further delaying closing. XXXX conferred with her manager, XXXX XXXX, and said we would be able to apply for a refund. When I pressed for that information in writing, XXXX sent the following in an email : " Please advise that we are aware that you are not suppose to be escrowed for loan # XXXX scheduled to close on XXXX XXXX. Chase will be removing escrows and updating your payment to reflect principal and interest only. Chase will refund you {$8600.00} and {$470.00} that you we are currently collecting to proceed closing. Chase will refund these two amount being collected for taxes and insurance. '' We were originally supposed to close on XXXX/XXXX/XXXX, the date was again moved to XXXX/XXXX/XXXX, and then again delayed to XXXX/XXXX/XXXX, and these delays were jeopardizing our purchase. We went ahead and paid the incorrect amount of {$83000.00} so that we could complete the purchase of the home. I emailed XXXX today XXXX/XXXX/XXXX, to file for the refund, and she was unwilling to process the request by writing, " I will call my service department next week '' Additionally, during our initial application, we paid a {$500.00} Good Faith Fund fee, which was supposed to be credited by Chase to our closing costs. After multiple reminders to include this credit in our closing costs, Chase also excluded this fee. 
XXXX and XXXX were both aware of the exclusion and XXXX wrote, " Please be advised that we will be refunding the {$500.00} good faith funds fee that you have already paid from a previous application. This was not credited on the final closing disclosure correctly and we, Chase will be refunding this in a few days. '' The last minute overcharge and escrow account addition seems suspicious because we were not provided with sufficient time to review the final disclosure prior to closing, receiving it less than an hour before our close time. Especially when the information was correct in the preliminary closing disclosure forms submitted to us for early review by Chase. Further, the withholding of the {$500.00} good faith fund is also suspicious, after numerous reminders were documented in writing. I am concerned about the delay in refunding us the overcharges to our mortgage. The mortgage overcharges and good faith fund fee amount to over {$9000.00} in suspicious conduct. We faced losing our new house if we did not overpay these charges, which Chase acknowledged prior to closing. Now they are delaying the refund. Please advise on how we can proceed and get our money returned. We have the supporting documentation and emails available for your review. Thank you!