Consumer complaint received 2017-10-23
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PHH Mortgage Services Corporation (CA)

In XXXX XXXX, my wife and I received an advertisement in the mail for a " cash out '' refinance from our current lender, PHH Mortgage. We thought it would be a great opportunity to take approx. 25K out to pay off our credit cards and do some long-needed home repairs. We first dealt with PHH Mortgage XXXX, XXXX XXXX ( NMLS ID XXXX ), who sounded very optimistic about our situation, so we proceeded with the application process. When we got to the topic of fees we would be responsible for, primarily the appraisal fee, I was shocked when he said it would be {$700.00}. We have been through refinances numerous times over the years and never have we been charged such a high fee. When I questioned him about it he said, " It could end up being less. '' I thought there was no way it could end up being {$700.00}, since most appraisals we have had in the past ranged from {$400.00} to {$500.00}. Believing this, we proceeded with the application process. My wife also had several conversations with XXXX XXXX, who told her the fees would be rolled into the loan and they would only be charging our credit card {$1.00}, which was required. 

Our loan package was then transferred to one of XXXX XXXX XXXX, XXXX XXXX. She completed the loan process with us and was always very cordial with us on the phone. The appraisal was completed and our house appraised at an amount that left us in a great position. 

The next thing I knew, XXXX told us our loan was denied because of " negative amortization '' related to our 2nd mortgage. We have never been denied in the past for any such reason. Very disappointed, we decided there was nothing we could do at this point. A few days later, my wife saw a pending amount to be withdrawn from our bank account in the amount of {$730.00}. I immediately called XXXX to inquire about it and she was very abrupt with me when explaining it, almost as if she did not have time for me anymore, since there was no money in it for her. I asked her what the fees were for and she said they were for the Appraisal, Credit Report and Flood Certification. I said the appraisal fee was way too high for our house of our size and value and I did n't even know what the flood certification was. She was very matter of fact and said I signed the PHH forms agreeing to these fees, so there was nothing that could be done. I asked if I could speak to one of her managers and she said I could, but it would not do any good because they would simply review my file and come to the same conclusion that I owed {$730.00}. Hearing that, I simply told her I would look into it more on my own. 

The following week, I attempted to reach XXXX XXXX, who started our loan process, since he was the one we had the most discussion with about the fees. Both times I attempted to reach him by phone, he did not answer his line and although I left voicemail messages, he has not responded to my calls. 

Incurring these ridiculously steep fees seems completely unfair, particularly when we were led to believe all was well and the fees would end up being rolled into the loan. We fully realize there are no guarantees with applying for a loan, but to me, this was simply stealing from people after giving them false hope.