Consumer complaint received 2020-10-02
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Mr. Cooper Group Inc. (FL)

In XX/XX/2020, I began an attempt to refinance my current fha mortgage with my current mortgage company. When I called in, I explained to the mortgage broker XXXX XXXX I wanted to refinance my principal home in Florida, and a rental property in Delaware. She explained we would have to do one at a time and to start with the Florida home. She requested to run my credit. I approved. When she ran my credit, she said I had excellent credit and could convert my mortgage to a conventional loan and save costs. She quoted us an interest rate of 3.25 %, a payment of {$1500.00}, closing costs of {$5100.00}, and a waiver of the appraisal. I was also told I would be receiving money at the closing of approximately {$1000.00}. I requested to think over it, and would call the next day. I called back the next day to move forward and was informed the payment was {$1600.00}. XXXX could not explain the increase, as all the information remained the same. She could only say there was a glitch in her system. I decided to still proceed as it was not a significant change. At this time I again requested to discuss the refinance of my rental property. XXXX then informed me that per Mr. Cooper policy that only one mortgage could be worked on at a time. My loan was then forwarded to underwriting. I was requested to provide my taxes, w-2, paystubs, bank statements, and any other asset statements. I was requested by the loan processor XXXX XXXX MLS # XXXX, to provide bank statements, signed tax documents, mortgage statements, address explanation, and credit inquiry explanation. The credit inquiry explanation requested I provide information as to why Mr. Cooper ran my credit. Mr. Cooper was the mortgage company I was applying to refinance. After the second request for documents, but prior to their review, XXXX called me and informed me my debt to income ratio was too high and they were unable to proceed any farther with the loan. I asked her how she made this decision as I have relatively little debt, and from their application site, I could see that not all of my documents submitted were reviewed. XXXX said all documents were reviewed despite the status saying otherwise on their website. XXXX informed me the loan was suspended and XXXX would call to discuss further options. XXXX never called, but I continued to periodically check the loan status as it never changed to suspended as XXXX indicated. Last week, I noticed that the loan changed to conditionally approved. I was confused by this because, I never heard from XXXX, or XXXX. I was requested to submit the insurance documents for my rental property, and asked for the front and back of my drivers license, a credit card, and a signed tax return. I provided these documents immediately. Yesterday, I was provided a closing disclosure. It stated that the mortgage payment was {$1600.00}, closing costs of {$10000.00}, and I had to bring approximately {$1100.00} to closing. I thought the stark differences from the estimate and closing disclosures were odd, but I signed anyway as I was still happy with the payment. Later yesterday evening, I checked the website and under the loan details tab everything changed from the closing disclosure I had just signed hours earlier. The new payment was {$1700.00}, closing costs were approximately {$12000.00}, and I had to bring approximately {$3100.00} to the closing table. I did not receive a phone call from XXXX or any new document explaining the sudden change. I decided to call myself. XXXX informed me that they had to use the old appraisal, and that it changed all the conditions of the loan. We were never offered an opportunity to have a new appraisal done to correct the value of our home, and this is information that should have been disclosed at the outset. They should have known that if they were waiving the need for an appraisal that it would mean they needed to use an old and outdated value that would ultimately impact the loan. They changed our loan details 4 different times with little explanation or communication, and it was not until I provided my license which shows I am a XXXX man that everything changed significantly with the loan details. Again, the issue could have been simply corrected with an updated appraisal, but this option was not offered. Additionally, I learned after calling back into the loan center,  that XXXX provided me incorrect information that only one loan could be processed at a time. She merely wanted the principal residence loan to be addressed so she could receive her commission, as she is not licensed in the state of Delaware to handle that loan. The employees of Mr. Cooper have been non-communicative, deceptive, and they have operated in bad faith.