Consumer complaint received 2021-07-20
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION (MA)

On XX/XX/XXXX, I began a 30 year fixed refiance application for a mortgage with AmeriSave. In the process of completing the application, I noted the loan officer, XXXX XXXX, clicked the floating box on the mortgage rate which was 2.75 %. As I was concerned that the rate was not fixed, I contacted her. She promised me in her response, " So since XXXX we have not been locking the rate right away, that is due to the rates changing so much and since so many people are refinancing, were averaging about 30- 60 days to complete the loan. After 30 days, you would have to pay a rate lock extension fee. So, what we have been doing that has worked great, is once you have almost all documents in, I will go in a lock the rate at better or at least the same as what youre signing for now. You will still get the 2.75 % that wont change it would be the points but we will get that back to better or the same ''. 

As she promised a rate of 2.75 % and the same or better points, I proceeded with the mortgage application. I had difficulty scheduling an appraisal as no-one was responding to my request for appraisal. I was transferred to another appraiser and the appraisal was conducted on XX/XX/XXXX. As the completed appraisal was taking a long time, I reached out to Amerisave on XX/XX/XXXX and asked how long it would take and was told, " we just need it as soon as possible ''. I responded to this email on XX/XX/XXXX asking how long the appraiser had and if the rate of 2.75 % with the same costs were still in effect. XXXX did not respond to my email. On XXXX XXXX emailed me asking if I had heard from the appraiser, I indicated I had not. On XXXX XXXX emailed me stating the appraisal was completed and I should download it. 

On XX/XX/XXXX she sent me an email that I had new loan disclosures to sign, when I looked at the documents, it seemed like I was completing a new application as she was requesting things I had previously signed. The new loan disclosure did not include any checked statements that the proposed loan was in the Borrowers best interest. Additionally, there was a clause on the Current Change in Circumstance which indicates an increase in fees and that I had requested these revisions. 

On XX/XX/XXXX I emailed her stating " I would like to know what the change in circumstances are for the loan and that I did not request any revisions to the mortgage application. It indicates on the form, Borrower Requested Revision. " I would like to know what the change in circumstances are for the loan. I did not request any revisions to the mortgage application. 
Date : XX/XX/XXXX XXXX Applicant ( s ) : XXXX XXXX File Number : XXXX CURRENT CHANGE CIRCUMSTANCE Only those charges associated with the Changed Circumstance may increase ; and, the new fees must be disclosed to the applicant ( s ) within 3 business days of the Changed Circumstance. 
Reasons for increase in Total Estimated Settlement Charges associated with this application : Borrower Requested Revision Updated to Current Pricing Fee : Loan Discount Change Of Property Value LTVChange Disclosure Type Loan Estimate PREVIOUS CHANGE CIRCUMSTANCE PREVIOUS CHANGE CIRCUMSTANCE Issue Date XX/XX/XXXX XXXX XXXX  Borrower Requested Revision Updated to Current Pricing Fee : Loan Discount She never responded to my email. 

On XX/XX/XXXX I emailed her again. I stated, " It has been over 3 business days since I was made aware of the Changed Circumstances and you still have not provided me information on what these changes are. I feel like you have not been transparent or kept me up to date on my mortgage application. I reviewed the series of events since XXXX/XXXX/XXXX in this email. I concluded with, " My question is are you still going to honor your statement you made on XX/XX/XXXX You will still get the 2.75 % that wont change it would be the points but we will get that back to better or the same Please respond to this email at your earliest convenience. I believe I have the right to the original terms you stated and to know what the changed circumstance are. Thank you '' On XX/XX/XXXX she replied and apologized for keeping me in the dark and not responding to my email. She explained, " The change of circumstance was most likely because the rates went up and when numbers change they have to be disclosed. We are not able to lock in the rate until it is almost at closing. Since the appraisal did take a while to come back it did slow things down. 
I just went over your file with my manager as well to see if we can go ahead and lock in the rate, but we still cant because credit and income documents expired on the XX/XX/XXXXso those two modules are no longer cleared.

If you can upload 2 most recent paystubs, and your most recent mortgage statement showing it was paid then we should be able to clear those modules. Once those are cleared we can then go in and see what we can do to get you as close as possible to what we originally agreed on. If you can send me those as soon as you can, I will upload those and we can try and get them cleared asap and locked in ''. 

On XX/XX/XXXX I responded, " I would not have proceeded with my application if I did not get the deal you promised. If you do not honor what you said in the email, I think this would be a case of unfair lending practices. I will upload these documents. If you had not promised a 2.75 rate and about XXXX in total closing costs I would have gone with another lender. I reached out to you several times as the appraisal was taking too long and asked about the rate. You never responded to my questions about the rate. 
If you dont honor what you stated in the email I feel like you lured me with false promises. I want to know exactly what you are offering me. You are well beyond the three business days. Close as possible is not what you stated in your email ''. 

She responded on XX/XX/XXXX, I completely understand. Im working on this along side my manager. The rates have shot way up, yes. Nobody expected this. There have been certain loans that we could not accommodate and unfortunately did have to go up a little on the pricing for them. 
However, once we get those documents uploaded and cleared, my manager is going to the VP to get as close as possible, hopefully even exactly, to what we were originally going with. Thats why I have not said an exact cost because I want to make sure what I tell you is honored, but we have to get word from the VP first. But before going to him, we have to have those items cleared. 
Im sorry I know this is incredibly frustrating and I really do apologize for not replying to that email, that was not my intention at all it was an accident. I am working to try and get everything figured out ''. 

On XX/XX/XXXX she contacted me and stated the loan was ready to go to closing and to call her. I responded on XX/XX/XXXX requesting a document with the new figures and told her I would call her in the morning. She responded that she would like to go over a few things and send the disclosures when we talked. 

On XX/XX/XXXX. I requested that she send me the original loan application, which she did. We had a phone call at XXXX, she told me my rate was going to be 2.99 %. 
I told her I was not happy with this as this was not what she had promised. I would have gone with another lender if she had not promised me the rate of 2.75 % with the same of better costs. I told her I thought an increase rate was unacceptable and that I would make a complain to the Consumer Financing Protection Agency. She agreed and we ended the call. I never saw the new revised loan estimate with the 2.99 % rate. After our call, I emailed her and asked her to send it to me. She did not respond to my request. 

In a nutshell I was promised in writing a rate of 2.75 % with better or the same closing costs. I would not have completed my loan application if she had not promised me this rate and associated costs in writing. 

The initial loan amount was {$320000.00}. 
Rate : 2.75 % Estimated Closing Costs {$6400.00} Includes {$2300.00} in Loan Costs + {$4500.00} in Other Costs - {$370.00} in Lender Credits. Points : {$0.00}. 
Cash to Close {$500.00} After our call, I realized that the rates had gone up and would have to start a new mortgage application at a higher rate, as the interest rates had indeed gone up. I proceeded with the application. 
The final loan amount was {$330000.00} Rate : 2.75 % Estimated Closing Costs {$12000.00} Includes 6.087.96 in Loan Costs + {$5900.00} in other costs- {$0.00} in Lender Credits. Points : {$3800.00} In summary I was promised in writing a 2.75 % rate with {$370.00} in lender credits with no points. I ended up with a {$2.00} rate with {$0.00} in lender credits and {$3800.00} in points. With no lender credits and paying 1.165 % in points, I paid an additional {$4200.00} for my mortgage from what I was promised on XX/XX/XXXX. As I was promised a rate of 2.75 with no points, I feel this is a case of unfair lending practices. I decided to submit this complaint after thinking about this for several months. I think what happened to me should not happen to anyone else. XXXX XXXX was not transparent and made promises in writing she did not keep.