Consumer complaint received 2015-05-13
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: Residential Home Mortgage Corporation (PA)

I contacted Residential Home Mortgage Corporation of XXXX, NJ ( RHMC ) on XXXX XXXX, 2015. We agreed to the terms and I paid a {$380.00} fee up front to initiate the mortgage - this was part of my commitment fee. On XXXX XXXX, they sent me a packet which arrived in the mail a few days later. I signed the documents back dated to XXXX XXXX. XXXX of them was the Good Faith Estimate ( GFE ). This document stated my Transfer Taxes would be {$2300.00}. On Page XXXX it also says " these charges can not increase at settlement ''. I sent the paper documents back with tracking and they received it on XXXX XXXX. 

I was scheduled to close at XXXX on XXXX XXXX. After asking the lender repeatedly over the preceding days for a preliminary HUD, which they would not provide me, I received the approved statement at XXXX the day before closing. They were asking for more banking documents throughout the day and an additional request for more banking documents was sent at XXXX, after the final approved HUD was sent. I had to delay the closing by XXXX hours because of the request for additional documentation. 

I looked over the HUD immediately on receipt and noticed the transfer taxes on Line XXXX were {$6300.00}, an increase of {$4.00}. I also saw on Page XXXX in the section of comparison of fees to Good Faith Estimate showed {$6300.00}. 

I immediately contacted RHMC to ask about the difference. XXXX XXXX, Assistant Vice President of RHMC, called me at XXXX and left a message. He stated that there was a program change on XXXX ( the day after I signed my copy of the GFE ) and they have a document with initials of the change to the GFE and this was sent to me by mail. I WAS NEVER NOTIFIED OF THIS CHANGE BY EMAIL OR POSTAL MAIL. I called back the next morning to ask XXXX XXXX for the initialed copy and received an email with the new GFE. This copy did not have any initials on it. He stated by email to me : " This GFE was produced on XXXX and mailed to your primary home on the application. Are you stating you did not receive it? When a program changes and the loan is re-disclosed, we are only required to send the good faith estimate to you. There are no signatures required. '' The only program change he was referring to was the increase in the transfer taxes on the GFE. 

The day prior they had a document with initials on it and now the document provided was dated XXXX XXXX which differed from the document provided to me on XXXX XXXX. They claim they can make changes to my GFE and it does NOT require me to sign them. This is a switch and bait scheme. They quoted me XXXX cost and changed it after I signed my documents. I found out XXXX hours before closing that I had to bring an additional {$4000.00} to settlement. 

I made additional calls to the title company asking me what my rights were. The title company said that the lender should pay the additional {$4000.00} since this is what they quoted me. They contacted RHMC and when I followed up with the title company, I was told that I could close on schedule and pay the difference, or close XXXX days later after the GFE is reissued with the new amount. They knew I needed to close on this home or risk losing the house and possible lawsuits from the seller. 

As a consumer, I am supposed to be protected from this sort of action. I expected the Good Faith Estimate to be honored. I was told some can be higher and some can not change at all. Just hours before I am set to close I found out XXXX of the non-adjustable fees ends up {$4000.00} higher and I am told that I will have to pay it. 

I am requesting Residential Home Mortgage Corporation to honor their Good Faith Estimate and refund me the {$4000.00} in additional charges I had to pay at settlement. 

Thank you.