Consumer complaint received 2018-11-08
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: United Shore Financial Services, LLC (MD)

I contacted Mrs XXXX XXXX XXXX ( aka XXXX XXXX ), a mortgage broker who works with XXXX XXXX XXXX, on XX/XX/2018 inquiring 30 year fixed mortgage interest rate and related loan costs with 25 % down payment for an investment property. She told me that the 30 year fixed rate would be 4.75 % and the related fees would be {$1200.00} XXXX {$450.00} appraisal fee plus {$750.00} underwriting fee, Exhibit A ). 
The loan was a non-point mortgage. However, when I received the Loan Estimate on XX/XX/2018, I noted that there was about {$3000.00} point charge. I told Mrs. XXXX clearly that I would accept a high interest rate rather than have points with the mortgage ( Exhibit B ). She assured me that the loan had no point and she would refund me the points charge after settlement ( Exhibit B ). She also told me that she had to maximize the estimate and the Closing Disclosure ( CD ) would show the accurate numbers ( Exhibit B ). I believed what she told me and expected that the points charge would be removed from the CD, and the CD would show correct numbers of the loan related fees. Per my request, Mrs. XXXX locked the rate at 4.75 % with no points on XX/XX/2018. 
The settlement was scheduled on XX/XX/2018. However, I did not receive the CD until the evening of XX/XX/2018, and the CD still showed a point charge of {$2700.00}, and the other loan related fees were {$1500.00} ( Appraisal {$640.00} + Underwriting fee $ XXXX= {$1500.00}, Exhibit C ) instead of {$1200.00} as I was told in the beginning ( Exhibit A ). 
After settlement, I emailed and texted Mrs. XXXX many times asking her to refund me the point charge, and she did not respond to my emails and texts. I also called her many times but she did not answer my calls. When I eventually reached her, she had no intention to refund me the point charge. 
In summary, Mrs. XXXX and the lender United Wholesale Mortgage had the following violations of ethics for mortgage professionals and mortgage related laws : 1 ) Intentional misrepresentation and deceptive actions regarding mortgage related costs : As shown in Exhibits A and B, I was told that the mortgage had no points and the loan related fees were {$1200.00} in the beginning. However, the lender charged me {$2700.00} point fee and other loan related fees of {$1500.00} at closing ( Exhibit C ). If I were told the truth, I would definitely switch to other lender. 
2 ) Fraud promises : Mrs. XXXX told me that she would refund me the point charge after the settlement ( Exhibit B ), however, she had no intention at all to refund me the point charge. I was told that the numbers shown in the Loan Estimate were just estimates and the CD would show correct numbers. However, the costs disclosed in the CD were basically the same as those in the Loan Estimate.

3 ) Violation of the Real Estate Settlement Procedures Act ( RESPA ) : According to RESPA, the CD must be provided to the consumer three business days before the loan is closed. However, the lender did not issue the CD until the evening of the scheduled settlement date ( Exhibit C ). If I were provided with the CD three days prior to the settlement, I would have an opportunity to request the lender to correct their wrongdoings before I closed the transaction. Because the CD was issued in the evening of the settlement ( Exhibit C ), I was forced into a dilemma : closing the transaction as scheduled and paying the extra fees due to the broker/lenders fraud actions, or postponing the transaction to solve the issue and paying the penalty per the purchase contract.