Consumer complaint received 2021-03-18
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION (CA)

We are writing to file a complaint against Amerisave Mortgage Corp NMLS # XXXX XXXX, GA XXXX. We believe XXXX engaged in a Bait and Switch tactic along with pulling and delaying the progression of our loan prior to completion. They improperly changed rates and closing costs to improve their financial outcome. Amerisave failed to provide disclosure documents on several occasions following loan changes indicated by loan agent. Amerisave also may have provided false disclosure to improve their financial outcome. In addition, Amerisave failed to seek consent for recording financial related phone conversations given that California is a two-party consent state. 
In mid-XXXX  XXXX, when rates were down, my wife and I decided to look to see if we could improve our situation, so we started looking at companies to refi with. We were not looking to get cash out just a simple refi to lower rates and an escrow impound account. We got several quotes from various companies most of the rates were about 3 to 2.875 % with {$4.00} to $ XXXX closing costs. When we talked to Amerisave, we provided info to best of our knowledge on incomes, credit scores and home value which we estimated at $ XXXX. They sent us two different quotes, one was 2.775 % with no points and {$1700.00} closing cost ( $ XXXX in lender credits ) the other one was 2.5 % with 1 point for {$4400.00} total closing cost. We decided to proceed with the 2.5 % and initial loan estimate of $ XXXX from Amerisave. Our original Lending agent was very attentive to our requests and always responded back right away. This process started quickly. We had an appraisal done ( which came in at $ XXXX ) within a couple days of the paperwork processing ( income statements, insurance, solar panel lease agreement and several other items ) and changing the mortgage clause of our home insurance. 
On XX/XX/XXXX we received a new disclosure document, reflecting the change in LTV from our estimate of home value ( $ XXXX ) to the appraisal value ( $ XXXX ) as well as difference in loan balance. Thus, at this time our LTV would be over 70 % and rate was 2.5 %. Throughout this process, our original Lender kept in touch and was responsive to inquiries. On XX/XX/XXXX, we were contacted by the original lending agent by email, indicating things were moving swiftly and they even provided a snapshot of the progress. ( PreClear Status : the following were completed : Credit, Income, Assets, Appraisal, Condo and PUD, Hazard Insurance, Flood Cert/Flood Insurance, Fraud analysis and Disclosures and RESPA while Property Tax was in progress and Title, XXXX, Settlement Fee, Payoff were listed as pending ). They indicated we could possibly close before the New Year and would be a nice way to start of the New Year off. Later in XXXX, we had received notice from our original mortgage company that they had received a payoff request so thought, XXXX! We are going to be able to get this done quickly! Our current mortgage company must have been expecting a payoff soon because it seemed like our XXXX mortgage payment took longer to post the usual ( almost 7 days later when its usually the same day or next ). 
The XX/XX/XXXX email appears to be last contact we would have with our original Lending agent. I started trying to get ahold of our Agent with no success. On XX/XX/XXXX, I was contacted by another Lending agent from Amerisave indicating that our original lending agent had to take an unexpected leave of absence and they would handling the process now and had a bunch of applicants dropped on them so to give them some time to review. I later received a call from the agent saying that underwriting had kicked out our application because as he mentioned on the phone, there was a discrepancy between what I had told them the value of my home ( $ XXXX ) was and what appraisal ( $ XXXX ) had come in at, despite being adjusted back XX/XX/XXXX after the appraisal was completed. It surprised me as to why the value I had mentioned mattered when they already had the appraisal. On the call he said he would fix the problem and resubmit the paperwork. I believe if this happened, this process should have kicked off a new disclosure on their part since it would have been a change in LTV ratio. Based on the information we had provided to Amerisave upon origination, our LTV would be about 69 % prior to adjustment by appraisal. Following adjustment from the appraisal our LTV was over 70 %. Thus, Amerisave knew on XX/XX/XXXX that our LTV was over 70 % and if the agent made the changes he indicated, they would have known again that we had an LTV was over 70 %. Now this entire discussion occurred over the phone. Now, when I talk to other financial institutions they indicate right off hand that this convo is being recorded and are you ok with that. There was no mention by person or machine about convo being recorded. Since we reside in California which is a two-party consent state I believe they have recorded our convo without consent. 
Afterwards, this started a prolong process of continual delays. On XX/XX/XXXX, our agent emailed us indicated that there was a lien on the house that we were not aware of from our solar panel company. He indicated it just takes time and money. During this time, I had asked if he wanted me to contact the companies and see if I can expedite it and said no it is fine. Now I would have figured after having submitted our solar lease agreement back in XXXX and near completion of the underwriting process in XXXX that this would have been discovered during that time. It has also come to my attention subsequently, that since we pay our lease by direct monthly payments to the solar panel company and not through property tax, that this should have not been a major issue. 
After a while of this ongoing waiting game, Wife and I had thought maybe we could roll the cost of the solar panels into the mortgage and not have to go through the subordination process. We had purchased our home about a year earlier and we had the option to purchase ( through mortgage ) or Lease. I had contacted our Lending Agent and he indicated we could do that. He and his manager requested copies of our solar lease again, solar panel monthly billing statement and the payoff statement for the solar panels, which was a process. However, instead of having us upload the documents into Amerisave upload portal, he asked us to send the documents to his Amerisave email account. All of the exchanges about the subordination and modifying the loan including the purchase of the solar panels occurred in email. I now realize this should have created a new disclosure release as well for us to sign, however that never occurred. Also, with the agent processing the new changes in the Loan as he indicated, he should have realized that our LTV would not be in the 60 's but instead over 70 %. 
During all these times, I had sent several emails to him about the status of our rate. He never responded to any question pertaining to rates in email. On phone however, several times he indicated our rates were still good. One time on phone, I had asked him about them and he indicated we are still good and that 2.5 % would be the worst-case situation. 
On Monday XX/XX/XXXX, I was contacted by a Loan processor indicating that our loan was approved. Now anyone following the rates knows, the rates have been creeping up with a large increase in rates on Thursday XX/XX/XXXX and stayed high on Friday XX/XX/XXXX. I had called the loan processor back the same day. I first asked the processor if the loan was approved with the solar panels? They indicated that there wasn't anything about the solar panels in the loan. I asked the loan processor the rate at which the loan was approved and indicated 2.5 %. However, they indicated that the rate was not fixed. They also indicated that there was a cash out for over $ 6K. The Loan processor indicated that we needed to contact the loan originator and have them make the corrections. Later that day, I got a call from the lending agent congratulating us the approval and then started talking about the rate. He mentioned that everything was based on value that I had provided them during origination and that our LTV ratio had now changed from the 60 's to the 70 's thus Amerisave was unable to offer us the 2.5 % rate. He indicated the best they could is 2.875 % with no points, I asked what would a point do and said 2.775 % and suggested it wasn't worth it. I was XXXX and mad and asked him why didn't you tell me this back in XXXX when you had the appraisal. He indicated he just processed the numbers now despite indicating he made changes to the loan early XXXX and modifying the loan in XXXX. He indicated he could do a 30-day lock for about {$1600.00} or a 15-day lock for {$1300.00}. I told him I had to talk to my wife before deciding. After talking to my wife and explaining they played us and that we didn't have much choice since rates were high now and with the subordination issue we either take it or leave it. I emailed him back to lock in the 2.875 % and he indicated I would have the corrected closing docs by next day. I got a call from the Loan processor the next day and we talked about the process and set up an apt for the Notary and that my wife and I would receive the closing docs that day and had to review them several days before the expect close date of XX/XX/XXXX. When I opened the documents, there was still a cash out of over $ 3K and closing costs were almost {$5500.00} with total loan at $ XXXX. Somehow, the closing costs now, without points were a $ XXXX more than what it was with a point added for lower rate during origination. I emailed my agent back about the $ 3K and he said he couldn't do anything since in processing but would let them know and he said it shouldn't have been over 2K. I told him it should have been XXXX, we didn't want or need any cash out. Another issue was that almost 70 % of property tax was placed in non-escrowed property costs for year 1. Also, thinking there would have been a subordination fee detailed in the closing cost, since I hadn't paid it, there was nothing about subordination in the closing documents. I also indicated if they would honor the $ XXXX in credits initially offered for no-point closing costs. I eventually received an email with contact info to start the process over again with a new Loan originator. 
Amerisave knew in XXXX that our LTV was no longer in the upper 60 % but over 70 %. In addition, based on discussion described above with the second loan agent, Amerisave should have realized in early XXXX and XXXX that our LTV was in the 70 %, however they never disclosed during these times that they would be unable to honor the original rate of 2.5 %. It wasn't until the loan was approved and rates had increased did Amerisave disclose their inability to honor the original term rate. In addition to this failure to disclose, Amerisave ultimately provided a product that was unrecognizable from our initial desire of no cash out and funded escrow account. Amerisave added excessive cash out options and fees at zero points in excess of what was offered during origination with 1 point added. Amerisave set up a severely underfunded escrow account which could have major financial issues later down the road. Amerisaves failure to disclose as early as XXXX their inability to honor the original rate, deprived us from being able to make informed decisions about our financial future to their benefit. We were either forced to accept a product we did not desire at a rate we were ambushed with or jump back into the waters of higher rates. We are currently attempting to refi with a company we had explored back in XXXX who had provided better terms in XXXX than what we ultimately received from Amerisave, unfortunately we are no longer able to take advantage of such favorable rates now and are proceeding with a refi under a higher rate.