Consumer complaint received 2019-06-26
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: TOLL BROTHERS INC (VA)

I was mandated to apply for a loan through TBI Mortgage as a " backup '' in case I lose an outside lender loan. I started this process in Early XXXX, but have ultimately been working with another lender from the beginning. 

On XX/XX/XXXX, I filed a request to use an outside lender with the sales department. Early on, the TBI lender XXXX XXXX XXXX let me know I had to fill out all the documentation and send it to him within 14 days. He offered a $ XXXX incentive to use them as a lender, but I only filled out the documentation because I had to. It is beyond frustrating to have to submit all of your documentation to a lender you have no intention of using. 

Two other lenders provided me with a lower rate than TBI, and I told the loan officer that. XXXX XXXX XXXX told me on the phone he would match the rate, and later that day sent an email about some long term rate lock that " many buyers use '' and that Toll Brothers offers a $ XXXX incentive to cover most of it ( which happens to be 1 % of the purchase price ). Again, I'm supposedly mandated to sign these things, and I didn't think much of this, but read it as an additional $ XXXX incentive to cover the cost which seemed reasonable, although I didn't e-sign the package because the promised interest rate wasn't reflected. It turns out this was not an additional $ XXXX - they use the " incentive '' to " offset '' the long term rate lock, so you don't actually get a XXXX in incentive!!! 

How many board meetings an pre-baked verbiage did it take to get this scheme down so smoothly, knowing full well they are locking you into using TBI mortgage, unbeknownst to the BUYER?! 

Fast forward to this week - he reaches out wanting my credit card information and to run my credit again. When I told him I will still need to compare lenders, he told me that I signed off on a long term rate lock, meaning if I go with any outside lender, I will lose the {$5.00} incentive ( which I ended up finding out would have been used to cover the rate lock fee of 1 % of the purchase price, leaving me still owing money!!! ) - So much for any " incentive ''. I NEVER would have signed anything like this, nor agreed to it. 

Now, his manager XXXX XXXX says they are not allowed to match rates before the 45 days, but claims his loan officer is " ethical '' and it doesn't matter if his loan officer said he would match the rate because I " never provided a rate to match in writing ''. 

The manager XXXX stated " it will be in your best interest to hear our offer '', and if I don't use Toll Brothers Mortgage as a lender, he " will have no other recourse but to charge me the 1 % and lose the incentive that would cover it ''. He said " this could all go away if you just hear our offer out. ", and if not, " do what you need to do ''. I am absolutely being bullied by TBI Mortgage, and can not believe this is actually happening. 

Of course I can not work with people that blatantly lie or perform a bait and switch. They also could not actually match the rate, come to find out. I have never seen such an egregious ploy to obtain a loan customer. They have ZERO regard for allowing you to choose your lender. They will attempt to force your hand. 

I have made it clear that I do not authorize TBI to perform any transactions on my behalf, that I never agreed to use them as a lender, and sent proof that the document sent on XX/XX/XXXX is still in the portal ( unsigned, because the promised rate was not reflected ). 

I WANT ANY CONTRACT WITH TBI MORTGAGE NULLIFIED AND VOIDED AND NOT TO BE CHARGED FOR USING AN OUTSIDE LENDER. I DO NOT WANT TO BE FORCED TO USE TBI MORTGAGE. 

As of now, I have been told if I don't use TBI mortgage, I will have to pay 1 % of my purchase price, which is over {$6000.00}. HOW IS THIS LEGAL????