Consumer complaint received 2020-06-08
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION (CA)

After I personally inquired about refinancing my mortgage with another mortgage company, I shorty received a call from XXXX the first week of XX/XX/XXXX, offering to refinance my loan and claiming I have been pre-approved. They seemed easier to work with, so I chose to go with them instead. 

My goals were to refinance with a lower interest rate with cash out to : pay off my XXXX balloon payment required if I refinance or sold the home and to keep the remaining of XXXX for myself or to pay debt off. 

I spoke with the loan processor, XXXX, who checked my credit report/score and said everything looked good and that I qualify. We went over the interest rate, and he provided me with a loan estimate via email, initially of XXXX based on 80 % of XXXX. Broken down : pay off XXXX to current mortgage, XXXX in closing costs, XXXX cash out. At this time, this estimate met my goals since it allowed me to pay off my XXXX balloon payment and leaves me with some extra. He tells me ( through text ) that there is a {$500.00} application fee but will be reimbursed to me after the " end of the loan process ''. 

I didn't start the loan process right away. It took me 2-3 weeks ( around XX/XX/XXXX ) from to give XXXX an answer. I told him my concern about the {$500.00} application fee and worried my loan will not go through. He then tells me that the {$500.00} is not extra, but " deducted ''. He also says that he " already told [ me ] that [ I ] [ am ] approved for the loan ''. He gave me a sense of hope, but I realize now that is was FALSE HOPE. I decided to go through with the process and paid {$500.00} The appraisal came back {$5000.00} short at XXXX, so now my cash out is at estimated {$19000.00}. This covers only my balloon payment and does not leave me extra. I expressed my concern to Maverick, then he tells me I may get at least 2 months without mortgage payment if we close before XX/XX/XXXX and that I will be reimbursed by my current escrow company. Basically, he was telling me I will end up with XXXX anyways in this situation. I decided to push through. 
I asked him about my debt to income ratio. He said it was fine, and that if I have more than {$10000.00} in assets there should be no problem. I asked him if there was anything else that might cause an issue and he said no. 
Two weeks go by ( XX/XX/XXXX ), I am told that my debt to income ratio is higher than expected, even though I have not accumulated any new loans or debt. He tells me that I am still approved for a XXXX cash out instead or get a higher interest rate. Now, this does not meet any of my goals ; cash out is now MUCH lower than anticipated and interest rate HIGHER than discussed. 

I emailed him directly my concerns and that I was misled. Amerisave SHOULD NOT GIVE FALSE HOPE or SHOULD NOT PERSUADE clients in any way unless they are sure they can meet the client 's goals. I specifically gave my expectations which was ignored. In the end, I was offered a much lower cash out, a higher interest rate, and wasted {$500.00} on an application fee that they claim was not an expense and would be deducted at the end of the loan process. 

***I attached the text communication, my communication is the green box and his in the gray box***** ***I also attached the email communication***