Consumer complaint received 2020-09-29
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Cleveland Mortgage Corporation (OH)

I spoke to mortgage broker XXXX XXXX with the Cleveland Mortgage Company. I was referred to him by a friend. I spoke to him initially on the phone and then followed up bus text on XX/XX/XXXX. In these initial conversations told him my current mortgage company offered me a XXXX package but it included my having to pay for an appraisal. He told me he knew he could get me a lower interest rate than my current lender and that I would not have to pay for an appraisal. He quoted me a rate of 3.15 %. He said that all the fees closing costs, insurance etc.. would be part of the calculation of my new lose monthly mortgage payment. He told me he could save me about {$200.00} a month. Over the next weeks and months I would leave messages but I nearly gave up because I would not hear from him. Then I finally heard from him. He apologized and said he was very busy but his delay in responding to me worked out in my favor because now he could get me an interest rate of 3 %. I provided him with requested bank statements and income verification and he ran my credit report. We had discussion via email about how I could or should increase my credit score by paying iif small balances I had on some store credit cards which I did. 

On XX/XX/XXXX XXXX emailed me loan documents the Uniform Mortgage Application to sign with a new monthly mortgage payment calculated at {$1100.00}. We had an email discussion because there was a discrepancy in my student loan payment amount and how many years I attended school and not all my credit cards were listed. XXXX told me those were not issues and to go ahead and sign the documents he sent me he would not be sending me nee application because it wasnt needed. 

I received an email to schedule an appraisal. I called XXXX bc he had initially told me I would not need an appraisal. He said I would need an appraisal but he told me I would not have to pay for it. 
When the appraisal was scheduled it included an invoice I called to confirm and spoke with another broker named XXXX XXXX to make sure before scheduling the appraisal that I did not have to pay for it out of pocket. XXXX confirmed that I would not being paying for it out of pocket but that it was already included in my new {$1100.00} payment amount. 

The appraisal was done on XX/XX/XXXX and it came in at {$190000.00}. This was a good appraisal because I bought my house with a mortgage if {$160000.00} in XX/XX/XXXX. My home increased in value. received my copy of the appraisal on XX/XX/XXXX. I emailed XXXX on XX/XX/XXXX to ask about next steps and see if I could get rid of pmi. He emailed in XX/XX/XXXX in his email he now told me the monthly payment would be {$1300.00} which is more than I am currently paying and that I would be responsible to pay {$4000.00} closing costs to close the loan. I immediately called him and left him a voicemail asking for an explanation. He did not respond so I sent him an email. I told him I needed an explanation why there was this huge discrepancy between what he initially told me- that I would be saving {$200.00} to now I would pay more. I also told him I needed an explanation for why suddenly he now says I have to {$4000.00} in closing costs when in all our previous phone conversations and emails he told me closing costs were included as part of my new monthly mortgage payment calculation. In my email I told him I needed to hear from him as soon as possible because it sounded like mortgage fraud. 

After I sent him the email he called me right away. In that phone conversation he offered no explanation what so ever for why I was now being told I had to pay closing costs. He didnt refute that he told he I wouldnt have to pay them. He said things change and that nothing that he told me or said on any email or that the information of the Loan Application was set in stone. I told him obviously I would never pay {$4000.00} to close a loan that actually costs me more money a month. I said who in their right mind would agree to that? He was condescending and rude and kept saying I didnt have to close the loan he was just giving me my options. I told him that he sold me a fake mortgage and it was mortgage fraud and I would be filing a complaint. He responded that I could do what I had to do,