Consumer complaint received 2023-02-01
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Ozark Mountain Mortgage, LLC (AR)

We ( My wife XXXX and I ) began a mortgage application with XXXX XXXX, Ozark Mountain Mortgage on or about the XXXX XXXX XXXX. We began the application online and proceeded to submit all the proper paperwork requirement, which led to the first red flag, signing of initial contract. XXXX XXXX XXXX, Due to a supposed glitch in the app my wife wasn't able to complete all the forms and submit them, this however did not stop XXXX XXXX from going ahead and pulling our credit. 

Next, the house inspection hadn't even been scheduled and XXXX is already asking me to order the VA appraisal inspector and in order to do so he needed me to give him {$700.00} in check or money order before he could even attempt it. He stated that even if the contract doesn't go through that would still be out that money no matter what and that there are no refunds. He also stated that if the deal did go through that I would be refunded out of the closing costs. XXXX made it seem that it would hold up the deal waiting for an appraiser so its best to take the chance, again before the house had even been inspected by a home inspector. 

The next item was when I got the initial rate back from XXXX ... from only one lender, I can't recall their name because it was a ridiculous rate of 7.25 %. I said that weird because Im seeing a bunch of mid 5 's and our credit score are excellent and are income is more than sufficient what is causing the higher rate. He called and assured me that this was the best rate available and he totally expected it to go up, so it's best to lock it in now. Taking faith that he knew what he was talking about I concurred begrudgingly. 

XXXX XXXX XXXX, I awoke with a feeling that this deal smelled on high, I continued to do my own research and found that many of the things he was stating were right out lies. I sent out a text that evening to let him know my suspicions. 

Me : Out of curiosity did the rates drop and what is the main reason I'm rating such a high rate? I have an excellent credit score and my ratio ( DTI ) is pretty much in the average. 

XXXX : The day you asked to lock in the rate was an off day so the rates were higher that specific day. Interest rates fluctuate up and down every day especially right now with the volatility of the market. Unfortunately, when you lock in an interest rate, you can't change it lower if the market goes lower. Fortunately, if the market gets worse, you are locked and your rate will not go up. 

Me : Ok so the advice that they were probably going up going to go up was a fluke I guess, also if we go with somebody else now are we out that XXXX I sent ya? Lastly I never stated to lock in the rate but I never said to float either. I now have learned to be more determinant with my words like the other part part where I end up paying all the closing. 

XXXX then called to tell us that he would do us a favor and reach out to the lender and let them ( the lender ) know that we ( my wife and I ) are " getting cold feet '' and see what he could door us. XXXX also reminded us that the VA appraisal was already scheduled and that if we searched elsewhere that it would be a " hit '' on our credit, two things he hoped would bind us to this rotten deal. There was no response to that text until the next day at noon, ( side not : the amount of the money order was {$700.00} not {$750.00} ) XXXX XXXX XXXX, XXXX : XXXX, Good news on the rate renegotiating. Call when you can At this time I was already in negotiations with another outfit that was quoting a far far superior rate closer to my expectations. There was no texts just two more voice mails pleading for me to call him about the great offer from the lender. 

XXXX XXXX XXXX, XXXX : Heard from your other lender today. 
I can not refund the appraisal fee as we had already ordered the appraisal as we talked about when we ordered it. That is a no refund fee once the appraisal is ordered. 
I can however offer you a 6.49 % fixed interest rate and we should be able to rush this through since we already have loan approval. 

I have since been informed by my current mortgage broker that the appraisal had not been scheduled until recently and not back when he said XXXX said it would be, also more to the point the appraisal was ordered and then canceled five minutes later on the day the other mortgage broker contacted XXXX at Ozark Mountain mortgage about transferring the monies. This information was provided by the VA appraiser himself because he just happened to be selected in the VA portal for use as the new brokerages appraiser. XXXX also stated that the money could not be refunded because the appraisal was already started and the VA appraiser stated No that nothing had started.