Consumer complaint received 2018-06-26
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: The J. G. Wentworth Company (PA)

I was already working with XXXX XXXX on an FHA and paid for the FHA appraisal when I received a phone call from XXXX at XXXXG Wentworth Home Lending. He explained to me that they offered a 5 % down payment conventional mortgage with lender paid mortgage insurance so I would save money versus going FHA. Obviously removing mortgage insurance sounded great so I had him draw up a loan estimate. I reviewed it and everything looked good. I signed the documents requested and sent him what he needed. He ordered the appraisal and I paid the {$450.00} for the conventional appraisal. At this point I have now paid {$950.00} for appraisals, but was willing to over look that since XXXX was so confident this was the best move for me and very convincing that the monthly savings I would get from not having mortgage insurance would make up for it. 

After a little bit of time I did not hear anything so at that point I decided to reach out for an update. This was on a Wednesday early XXXX. XXXX informed me that I need not worry, but he was fighting with underwriting. He said he would call me back with an update. 2 days later I get a call and he tells me that I don't need to worry, but they were switching me from XXXX to XXXX and if I didn't hear from him over the weekend everything was fine. Come Monday I have not heard anything so I reach out to him. He tells me that my LTV is too high and we have to go FHA. I have already expressed to him prior to this that I had no interest in goign FHA. He tells me that the only way to go with conventional route that we are trying for is if I get the LTV under 90 %. So I ask him to redo the loan without the sellers assist. This gets my LTV to 86 %. About a day later I get a new loan estimate. At this time he tells me that secondary already approved my LTV and I just need to get a new bank statement to XXXX the LP to show that I have the new amount for closing. I jump through hoops to get the correct cash to close and provide all documentation showing how I got the funds and that they were available in my checking account. After several days I don't hear anything. I checked in with XXXX and he said we are good and on track to close the XX/XX/XXXX as planned. I followed up with him last friday the XXXX and he said there is no new news we are just waiting for the closing disclosure to set up the closing details. I followed up with him yesterday morning ( XX/XX/XXXX ) and he informs me that they are trying to say they can't do the loan because I make too much money, but that wasn't the loan type he submitted me for so it is an error on their part and I need not worry. He will call me back. I have to call him back becasue he doesn't reach out to me and he tells me he is still waiting for a response, this was around XXXX. Well we arrive at XXXX last evening and he calls me to tell me that they can not approve the loan becasue they can not give me pricing with the LTV that high and when they could get pricing the points were to high. They let me know 4 days before close that everything that was promised to me and supposedly already approved was a lie. 

I have gotten in contact with a new lender this morning and sent them the loan estimate I received on XX/XX/XXXX from XXXX. After she received it she advised me why it failed. It turns out what XXXX was telling me was due to the " lender paid PMI '' they were charging me outrageous points. So basically I was paying the PMI upfront, but it was being disguised as points. The loan he wrote was illegal. From day one he wrote a phony loan that never would have made it through processing. Why in the world would he string me along with a bogus loan? Why didn't anyone contact me sooner to let me know that the loan could never work instead of allowing me to get screwed 4 days before I'm supposed to close. If someone would have let me know we could have tried to work something out where I paid the PMI and dropped the points so I could still be closing this Friday, but instead I was lead to believe a complete lie. I've been completely understanding and flexible with this company. I have done everything that was asked of me very quickly. Just to be played by a loan officer who apparently doesn't know how to write legal loans. All the calls with XXXX can be reviewed to hear the false promises I was given. I also have email communications and the loan estimate showing the garbage loan he tried to write for me. Due to the false sense of closing on the XXXX, I have already made arrangements for utilities to be put in my name. I am purchasing the property I am renting and this puts me in a very awkward situation with my landlord, the seller. I feel as though JG Wentworth Home Lending should be more aware of the practices their loan officers are doing.