Consumer complaint received 2023-07-18
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: JPMORGAN CHASE & CO. (VA)

I am a member of a credit union. I also have an associate who is a Mortgage broker. I decided to try to purchase a home for the 3rd time with JPMorgan Chase after Lending Advisor XXXX, insisted I qualified for a first-time buyers program called the XXXX in which I would receive a $ XXXX {$5500.00} grant ( {$5000.00} & {$500.00} for Buyers education course completion ). This is advertised on their website-without exclusions or other specified stipulations. Neither the credit union or the Mortgage broker could offer such an incentive. At the time of my application ( XX/XX/XXXX ) my credit scores were XXXX, XXXX, XXXX. I was told I was considered low income by the XXXX so the home qualified for the full {$5000.00} grant. The interest rate offered to me was 6.875 % on XX/XX/XXXX when I found a first home to place an offer. The discount points I was told to be purchased was 0.951 % at $ XXXX which would be deducted from the {$2500.00} being offered by Chase XXXX Due to an internal offer my offer was declined. On XX/XX/XXXX another home came up and I offered {$220000.00} over their asking price of {$210000.00}. On XX/XX/XXXX, my offer was accepted and I was told I would receive a Seller Credit ( on page XXXX the ratified contract ) of {$500.00} for a broken dishwasher in the home. However On XXXX XXXX I sent the {$2500.00} XXXX. On XX/XX/XXXX I received my first loan estimate- which now showed me paying in excess of {$5700.00} for 2.678 % of the loan amount to buy the interest rate down to 6.75 %. The closing costs exceeded my available funds and I reached out to XXXX for advisement. After discussion, she revised the Loan Estimate and on XX/XX/XXXX, sent me another Loan Estimate which showed me to pay {$7900.00} loan points at 3.299 % to bring the interest rate down to 6.5 %. Again, I was dismayed and consulted XXXX. With the 10-day financial contingency period coming to an end ( XX/XX/12 ) I texted and emailed XXXX that XXXX numbers were continually going up despite her assurance that they were being worked down. I began to panic as all the costs still reflected exceeding my budget. I asked my job for a raise and they granted it. I emailed XXXX and called between XXXX XXXX until she finally called me on XX/XX/XXXX to discuss. I continually asked her why I could not go without buying any interest rate points and just take the higher monthly payment until I could refinance with my credit union. I kept asking her to remove the points all together and send me a loan worksheet with the higher monthly fees. She refused. I told her that I could secure a conventional loan without the XXXX. I could not understand why this was being forced on me. I asked her flat out, if the numbers were being manipulated- why they were not being adjusted to come in at what I actually could afford or lower than the cash on hand. She finally let up and changed the amounts and sent me a loan estimate of showing I would pay {$7700.00} for 3.239 % of point deductions- making the interest rate 6.49 %. Fed up, I decided to get current rates from both my credit union and the Mortgage broker- who both informed me of the going rates being 6.875 % without points. They showed what they charged for each point and confirmed that what I was given was overcharged and underrecorded. The {$5500.00} incentive was not actually being applied to anything other than washing out imaginary points purchase that was not buying down the rate as represented. I was informed by XXXX that underwriting told her that I could not have the {$500.00} seller credit because it lowers my downpayment to under 3 % of the program required amount. However, they {$500.00} for the dishwasher was explained to be removed from the purchase price of {$220000.00}. I went to a Chase branch on XXXX XXXX the branch manager XXXX XXXX XXXX XXXX times before reaching her. I asked her again why I was being forced to buy points I could not afford, why she refused to address removing them altogether. She still sent me a closing disclosure that same day with me purchasing the loan points of {$4700.00} at 2.217 % but the interest rate at the original 6.875 %. I reached out to her manager XXXX XXXX on XXXX XXXX he called me back and told me that Chase could not lend comparable to the other Mortgage lenders. He said that I could cancel and offered no other solution as I was not going to receive the {$5500.00}. I went to the nearest Chase bank to remove all funds from my accounts and end the business relationship, when a very helpful employee decided to take a look at each document I had received and called an escalation. She spoke to XXXX XXXX and asked him each question I had. She received much clarification on my behalf and explained that the numbers were incorrect on the closing disclosure, that the {$5500.00} was not an actual amount I would receive towards closing costs or down payment as Chase was taking that amount. However, she asked XXXX XXXX why was it reflecting that I was purchasing points but not reflecting a lower comparable rate or the rate reflecting on Chase 's website. She had me email him the estimate and email of current rates from both my Credit Union and Mortgage Broker- which both matched a current rate of 6.875 % without points. He said he would review and then see what they can offer for me to make a decision. I see this as steering, predatory lending, price gouging, and dishonest practices.