Consumer complaint received 2019-08-02
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Paramount GR Holdings, LLC (CA)

We are repeat customers after having a reasonably good experience with a refinance in XXXX with XXXX XXXX XXXX at Paramount Equity MortgageXXXX. 

This time, however, the lack of communication, broken promises, incorrect information, interest rate errors and fluctuations, promise of cash out availability through our escrow refund & payment relief months, loan timing, loan fees, manipulation of our appraisal amount and failure to inform us of changes that Paramount insisted that the appraiser make to reduce our homes value, failure to honor our request to cancel/provide cancellation paperwork, etc. have been fabricated at best, fraudulent at worst. 

We were clear in explaining to XXXX XXXX that we wanted to refinance our new home to get out of the 10 year ARM we were in at 5.25 % interest rate and use cash available to help our daughter pay off student loans. This was all about getting into an improved fixed interest rate and helping our daughter. We did not have to refinance right now. We just bought our newly built home in XX/XX/XXXX. 

Our appraisal came in lower than expected at {$580000.00} but XXXX assured us that we would have our escrow account refund ( of approximately {$10000.00} ) and 2 months of payment relief ( another {$6800.00} ) to use for our daughter instead of equity. 

When the first closing statement was generated, we were astonished to see that we were still in an ARM and the documents reflected our former address. We identified the errors and asked him again to get us into a lower fixed rate and lock it in. 

We started providing the requested documentation in XXXX. At the end of XXXX we still had no new loan in place and another mortgage payment due. We did not know what the hold up was so we paid the XXXX payment. XXXX later informed us that our cash would be {$3400.00} less since our only payment relief would be in the month of XXXX. They were pushing to close the loan by the XXXX of XXXX with our first payment due on the new loan in XX/XX/XXXX. Again, this was not something we requested or needed. It was another assumption or rather necessity on the part of the lender to close our loan by a certain time. 

XXXX also led us to believe all during the process that we would have no out of pocket expenses but at signing on XX/XX/XXXX, the closing statement included $ XXXX in fees that we were to wire transfer. Points on the loan were all over the board in the various closing statements presented to us in the process. XXXX continued, even on this date, to lead my husband to believe that we were going to receive our escrow account refund from XXXX XXXX XXXX XXXX, even though there was a document showing that our escrow account was being used to pay down our principal at loan payoff to XXXX XXXX and that he was working to reduce/eliminate the $ XXXX we were being asked to pay in closing costs. When I pointed the escrow concern out to my husband at signing, he assured me again that XXXX said it was coming to us. We are not experts at reading these documents and trusted that XXXX was giving us truthful and accurate information. 

On the third day following our doc signing, XX/XX/XXXX, XXXX emailed us with a reduced closing fee of {$2600.00} that we were still expected to pay by wire transfer. In response, on XX/XX/XXXX, my husband emailed him and stated that we wanted to cancel the loan and would not pay the fee. 

During doc signing, when I reviewed the closing statement for the new escrow account set up, I was also concerned that the new payment was set up incorrectly and would generate a shortfall after the taxes are paid again in XXXX, resulting in a big increase to next year 's payments. I placed a call to our lender at that time, XXXX XXXX XXXX XXXX, and learned that indeed, the taxes planned for payment in XXXX were underestimated AND the request for a payoff from Paramount did indeed instruct them to reduce the principal balance by the amount of our escrow account, meaning we would never receive the escrow refund promised by XXXX. 

The out of pocket expense, lost escrow refund, excessive loan fees, additional .25 % on the interest rate, and mistakes in the new escrow set up were all reasons why we informed XXXX on XX/XX/XXXX that we were canceling the loan. We were at work on XX/XX/XXXX when all of this was identified so my husband emailed XXXX to cancel the loan and requested any required documentation for the cancellation to be provided. They talked later on XX/XX/XXXX and my husband explained everything verbally as well. This date was critical in the cancellation process as it was day three following our doc signing. XXXX seemed surprised by the escrow refund issue and wanted to see if there was anything else he could do about the out of pocket expenses so he said he would get back to us. Since this was the third day, a call back that night was expected. We didn't hear from him again for 2 more business days. 

However, the loan didn't get canceled and much to our frustration and disappointment, it actually funded on XX/XX/XXXX without our knowledge. This seems like a delay tactic that ensured that we could not cancel since time ran out and the loan did end up being funded on the following Monday. The strange thing is that XXXX called my husband back on XX/XX/XXXX to convince us to go forward with the loan because they were able to entirely remove the fees we were supposed to wire. My husband said no, the escrow refund and new escrow set up are even bigger issues now and not what we agreed to. 

All during the day on XX/XX/XXXX, we had no idea that the loan had actually already funded. However, I checked our bank app on the evening of XX/XX/XXXX, after we found a XXXX package under our mat containing a small refund check from the title company. Sure enough, the refi was funded on XX/XX/XXXX, even though XXXX XXXX clearly knew we wanted to cancel on Friday, XX/XX/XXXX. 

This is not the deal we were sold - Escrow refund promised ; used in payoff without our knowledge/approval - 2 months of payment relief promised is now only 1 due to lack of communication from XXXX - Our new lower monthly mortgage payment was used as an appealing sales tactic, however, the new escrow account will produce a shortfall after the XXXX tax payment is made resulting in a higher payment in XXXX - Interest rate not as low as originally quoted ( initially quoted 4.25 %, ended up at 4.5 % ) - Exorbitant loan costs buried in closing statement/points ; then drastically reduced in order to push our loan through after we requested cancellation - Requested cancellation by email and phone along with the refusal to accept/pay the borrower closing fees shown in the closing statement, not honored Instead, Paramount eliminated our out of pocket fees entirely and without notifying us so that they could push the loan through. We did not get a revised closing statement until the loan was funded, which was delivered on XX/XX/XXXX. 

On the morning of XX/XX/XXXX, my husband forwarded the above complaint statements to XXXX XXXX by email to let him know that if we didnt receive our full escrow account refund as he promised, we would file a XXXX complaint and post this information on XXXX as well. We did not hear from XXXX again until later in the week when he sent us a defensive apology, stating that he had waived his entire commission to make the deal work for us. However, a District Sales Manager, XXXX XXXX, reached out to us on XX/XX/XXXX and we had a conference call that evening. It included my husband, XXXX, and me. XXXX offered us loan reversal. However, before agreeing to reversal, we discussed the appraised value and why they took our escrow funds in the loan. He stated that we only appraised at {$560000.00}. However, we paid {$570000.00} for our home in XXXX of XXXX and our copy of our appraisal in this process shows a value of {$580000.00}. {$580000.00} was less than expected, however, as new homes are selling above {$600000.00} for our model in our neighborhood. In addition, we discussed that if our loan to value was seeming to indicate a need for PMI, that was never offered as an option by XXXX and would have indicated to us that there was a discrepancy in our appraisal on their end. In any event, we all agreed that loan reversal was the answer. 
I was able to locate our copy of the appraisal and provided it to XXXX by email on XX/XX/XXXX, and he sent his copy to us. They do bear a {$15000.00} difference. I found the discrepancy in the value of the solar panels, which we financed with our mortgage loan when purchasing our new home. XXXX also provided the name and contact information for the appraiser so I reached out to him. He explained that his first appraisal that we were copied on was in the amount of {$580000.00}. However, Paramount contacted him and insisted that he reduce his value by the amount of the solar or {$15000.00}, due to our solar being leased. This is incorrect. He said it is usually included but he had to comply with their request as they are the customer. This all happened in the background and we were not notified that loan calculations were being made based on a lower appraised value than we had received in writing. Our first documents generated and sent to us for electronic signatures reflect an appraised value of {$580000.00}. Internally, they changed this figure and slipped it by us with no notification. We find it confusing and unacceptable that they would insist on a lower valuation than what was provided by their professional appraiser. 

On XX/XX/XXXX, I received a voicemail at work from XXXX XXXX, a Vice President with Paramount. I provided his name and number to my husband for the return call. XXXX explained that he has only walked one loan back through a reversal in the last 10 years and its a difficult process which can take up to three weeks so he wanted to negotiate a way to avoid loan reversal. The next day, XX/XX/XXXX, XXXX offered us {$5000.00}, in addition to the refund of {$1800.00} already provided at closing, for the loss of our {$10000.00} escrow refund. My husband said that we also wanted a lower interest rate and everything in writing before we agreed to forgo loan reversal. XXXX said he would call back and we have not heard from him since XX/XX/XXXX. My husband has called him no less than 9 times during the week of XX/XX/XXXX XX/XX/XXXX, leaving voicemail messages, but to no avail. We also never heard again from XXXX XXXX. We seem to have come to an impasse and again, a delay tactic is at work to make the reversal all but impossible.