Consumer complaint received 2023-01-27
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: THRIVE MORTGAGE, LLC (TX)

XXXX XXXX ( Article 1, 1b & c ) : I emailed our loan officer XXXX XXXX to inquire about closing early on our Home to Home ( bridge to conventional ) loan, including a link detailing 3 available options. The link as of writing this, the link to the presentation still worked. I have included screenshots as well ( Article 1 b & c ). 

Friday XX/XX/XXXX ( Article 2 ) : Me, my husband XXXX and XXXX email back and forth about proceeding with option 3 of XXXX presentation. Option 3 is 6.6 % blended rate, paying off XXXX in debt and zero points. XXXX confirms the origination fee will be less on the final disclosures. We also confirm that we will pay off a XXXX debt ( in actuality it was down to XXXX since XXXX when XXXX last checked ), per XXXX direction so that we could move forward with option XXXX. XXXX confirms we are on it. 

Thursday XXXX XXXX ( Article XXXX & XXXX, XXXX ) : This is the first we have any communication with XXXX since asking him to proceed ; he sends us disclosures ( Article XXXX ) with significantly different numbers from what we had previously discussed. A 7.125 % rate, origination fee remained the same, and purchasing {$710.00} in points. We do not sign them, because we did not agree to this higher rate, or to paying points. The rate lock agreement is on page one. The disclosures also show that our rate was not locked until Thursday, XX/XX/XXXX, despite XXXX telling XXXX to proceed on XX/XX/XXXX. We acknowledge the market was closed by that time on the XXXX and the XXXX was a federal holiday. 

We go back and forth over several days ( Article 3b ) asking for clarification and accurate disclosures that reflect numbers XXXX gives us over email. XXXX again references changing the origination fee and other figures that will potentially be different on future disclosures ( Article 3c, a text exchange with XXXX ). We clearly state that we XXXX wait to close early if the rates have gone up this much since his presentation. We do not realize that the higher rate was actually locked by XXXX, without consulting us, on XX/XX/XXXX until XX/XX/XXXX. 

We were neither notified nor agreed to this higher interest rate. I send both XXXX and XXXX XXXX ( the branch manager ) a copy of the Texas Administrative Code explaining they did not have the authority to lock us into a higher rate without a rate lock agreement in place. This higher rate also increases our monthly payment by roughly {$250.00} per month, for the life of the loan. 

XXXX and XXXX response is to offer a {$3000.00} lender credit and the promise of refinancing at a later date. This credit will not even cover the increase in interest we are now locked in to without our approval ; approximately {$3000.00} per year, for the life of the loan ; 30 years. 

XXXX XXXX ( Article 4, 5 & 6 ) : Apologies if some of the emails are repeats ; these chains were very long. Article 4 : I email XXXX directly asking her to review all disclosures and emails sent between us and XXXX. Based on XXXX unlawful act of locking our rate, I request they figure out how to undo this act or buy down the rate to what XXXX originally presented us with. She suggests a phone call on XX/XX/XXXX at XXXX ; we have a pleasant conversation where she acknowledges XXXX should have notified us about the increased rate before acting. She says she will send us what she can offer regarding closing early so we can discuss later that same day. 

Article XXXX : XXXX emails us basically what XXXX sent the previous night. She offers the lender credit and options for us to either buy down the rate or refinance, and explains how we can break even within 4 months. 

Article 6 Screenshot 1 & 2 : I have a tense text exchange with XXXX expressing frustration about her not buying down the rate, us spending XXXX in liquidity to pay down a debt at XXXX direction for a much worse deal, and a couple other ongoing discrepancies we keep finding in the disclosures. We were presented a deal that we were excited to move forward with only to have the terms drastically change, without consent or being given the option to choose ; as is our legal right. She references a presentation given XX/XX/XXXX, completely ignoring that I have repeatedly asked her to check XXXX email for the presentation on XX/XX/XXXX. XXXX was updating this presentation in real time, while we were on the phone with him that same day. 

XX/XX/XXXX ( Article 7 & 8, 8b ) : Both XXXX and XXXX make it clear they will not be buying down the rate. We are locked into a rate we did not agree to, and we have now lost 10 days to this back and forth. We are accruing roughly {$200.00} interest daily. We realize that we have no choice but to proceed with this loan as is without us costing even more money. We also receive a disclosure document for the second lien. We text XXXX and XXXX ( Article 8 ) with questions about closing costs and because the document indicate buying points for {$5700.00}. This is also the first we hear that we will not have the option to pay off the loan without a penalty. This should have been disclosed to us before we got close to this point. We also get an email from XXXX ( Article 8b ). 

XX/XX/XXXX ( Article XXXX ) : I reach out to the regional manager via phone at XXXX XXXX office. XXXX called me back and I give her a detailed account up to this point. She is sympathetic and says she will investigate and get back to me. I encourage her to comb through XXXX email correspondence. I explain we really just want to move forward as quickly as possible, because these delays are costing us money. 

XXXX called me to discuss options. I was immediately frustrated because the numbers she was quoting me were again all of the place, and she was now quoting us higher closing costs than we had. I remind her again that we paid off XXXX in liquidity at XXXX direction for the rates that he baited us with to move forward. She texts me again, ( Article XXXX ) and I express that this is all very confusing and ask for accurate numbers ; this has changed every day. 

XX/XX/XXXX ( Article 10 & 11, 11b & 12 ) : We receive an email from XXXX and XXXX is ccd ( Article 10 ). This email basically states that the only option we have is to move forward with the sale of our home first we have been denied by underwriting. I email back more questions, and letting them know I will be filing complaints and consulting our attorney. XXXX speaks to XXXX over the phone asking to quantify why we were denied by underwriting, she says she doesnt know and will submit a request. Because XXXX previously emailed us that some of the figures were incorrect on the disclosures, we have no idea what she fixed or what actually went back to underwriting. We need to know why we were denied so we can have a goal to achieve to safe guard ourselves in the event our home doesnt sell in time. 

XXXX tries to recall her message after I sent mine, she says she was trying to update it ; we do not receive an update. ( Article 11 & 11b ). 

Article 12 : XXXX texts XXXX and XXXX asking for the second lien denial paperwork. 

Conclusion : XXXX presented us with three paths forward, complete with detailed interest rates. We agreed to a specific option. He proceeded with the rate lock ( which also charged us points without our consent ) without verbal consent or written approval as is required by Texas Administrative Code ; completely changing the terms and agreement. After 15 days of us paying off a loan and countless back and forth we were told we could not proceed after all. When we originally spoke to XXXX before even qualifying for this product, we explicitly asked what the path forward was should we choose to close before we sold our home, and he quoted this option. We would have never entered into this agreement without a solid plan B. We feel this has been a violation of the UDAAP, Regulation X and Z, and a bait and switch. 

We have been mislead and presented with incorrect or false figures to entice us to proceed. Because this situation is ongoing, I do not know what the financial cost to us will be. We are currently being charged {$5900.00} interest only payments until we are able to sell our house, with a ballon payment due on XX/XX/XXXX for the entirety of the loan. We are also consulting with our realtor about having to reduce the price of our home significantly below market value so we can attempt to sell our home much quicker than we were led to believe.