Consumer complaint received 2019-08-07
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Fairway Independent Mortgage Corporation (AZ)

I closed on my house on XX/XX/2019. I had been the official owner of the home for over a month and reached out to the lending company about a refinancing question, more specifically, when I would be able to if and when I wanted to. Only then is when they must have looked at my paperwork to answer my question, noticed an error in the documents and decided to let me know. If I hadnt have emailed them with the question, would they have even caught the mistake? 

The mistake : They sent me notice via email that they had made an error with the paperwork, over a month later, on XX/XX/XXXX, and asked me to sign new documents, again, through email. I had requested more information regarding the error and I was told this : " Your loan included 6 % in Down Payment Assistance and that is provided with a 10 year forgivable 2nd loan. The lower Down Payment Assistance programs are a 3 year forgivable loan and unfortunately that is how your original second was drawn. The corrected note and deed sent by XXXX ( production coordinator ) is correcting your second from 3 years to 10 years to match your correct 6 % DPA. '' Mind you, I was notified of this information 30 days after my official closing date. I had already completed the signing process, made the final agreements to the contract and had been a home owner since XX/XX/2019. The company may have mentioned something in the beginning stages of the home buying process, and I know they mentioned briefly something about 3 years and 10 years. I don't even really know, but there was so many things going on, how was I supposed to know what anything really meant without it being explained in full detail? Everything made sense on my signing day, which is why I signed my name so many times. 

I did sign the errors and omissions document, which myself and others I have spoken to are completely unfamiliar with and maybe I should have asked more questions about it, but that is the partial downside of being a first time home buyer I suppose. I am a XXXX year old millennial and did not have the luxury of learning the home buying process in school. Regarding this document, don't they have to notify me of the error within 30 days of closing on the home? Am I obligated to sign this new paperwork that will completely change my 30 year contract? A little more information and to be sure I am understanding this all correctly, I used this first time home buyers program, which I guess acts as a 2nd lien, and when I went to my final signing to completely close on XX/XX/19 ( closing date was XX/XX/19 ), the paperwork said I was obligated to the 2nd lien for only 3 years and then it was forgiven. From my understanding, the mistake the lender made that they want me to fix now, through signing new documents, is that they want to change the forgiveness period to 10 years rather than 3 years. So essentially, I would have to stay in the home for 10 years and have that second lien in my name for that long ( vs the 3 years ) or I would have to pay back the first time home buyers loan I received.This changes things quite a bit. I am single now and the home has two bedrooms and one bathroom. I love the home, however, by the time I'm XXXX years old, I could very well be a different person and be able to afford other home options. This whole situation is scary enough and I just have too many questions I want answered and I have refused to sign the paperwork. 

Now, the lending company has sent me a letter, ( mind you the very first official letter that has been sent to me via mail regarding this issue ) which is dated on XX/XX/19. I did not receive this letter until XX/XX/19. The letter indicates more details about the error, that I signed the errors and omissions- compliance agreement on XX/XX/19 and that since I have refused to sign the documents and send them back via email that I am in breach of my contract. It instructs me to contact XXXX XXXX to make arrangements to sign the documents and that if I do not within 5 days of the date of this letter, ( letter dated XX/XX/19, received by me on XX/XX/19 : over 5 business days already ) that they will be forced to take further legal action against me. It ends with a warning, " Please govern your actions accordingly. ''