Consumer complaint received 2022-03-29
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: A&D Mortgage LLC (CA)

I needed to refinance an old mortgage on a rental house I own in order to remove the co-signers, who are now elderly and for whom being co-signers is impacting their estate planning. The original lender told me the only way to remove the co-signers was a complete refinance, so I worked with a licensed mortgage broker since financing rental property is more complicated than refinancing one 's own home, and I am semi-retired with investment income from rental properties as opposed to salary earnings reported on a W-2. 

The broker found a loan from A & D Mortgage. A screen shot of their web page with the criteria for the program in question is provided. I applied and A & D gave me a rate lock at 5.25 % dated XX/XX/XXXX, ( Also provided. ) A & D questioned some claimed late payments to XXXX  and XXXX that were shown on my credit report, and I provided XXXX Letters of Explanation, which also offered documentation that the XXXX and XXXX claims were false. ( Please note that I have been working for some time to get my credit report corrected, but because of the urgency of the co-signer 's request to be removed from the loan I could not wait to complete that process before applying to refinance it. ) A & D requested no explanations of anything else on my credit report. There was no new credit report, and nothing changed after the date of my application. I did not change the type of loan I was applying for, the appraised value of the property I am refinancing is for almost double the amount of the loan, if anything my credit scores should have gone up because immediately after applying for this loan I paid off credit cards in full, and my income and assets were well documented from the beginning. ( Please see CFPB web page https : //www.consumerfinance.gov/ask-cfpb/whats-a-lock-in-or-a-rate-lock-en-143/? _gl=1*375e66*_ga*MTI2MTMwMzU5NC4xNjI1ODQ0MzUx*_ga_DBYJL30CHS*MTY0ODIxMjYxOC4xMTEuMC4xNjQ4MjEyNjE5LjA ). 

I promptly met all A & D 's requests for various documents and records. Without warning on XX/XX/XXXX, the broker informed me that the interest rate on my loan was not going to be 5.25 % as per the rate lock but 5.5 % instead. It is noticeable that this occurred after the Fed raised the interest rate effective XX/XX/XXXX. 

The broker said the rate increase was due to a single late payment in XX/XX/XXXX claimed by XXXX XXXX showing on my credit report. This was the same credit report that A & D had already had for some time, and based on the information claimed in it, had already questioned other items. While it had questioned the claimed late payments to XXXX and XXXX, it NEVER questioned that one claimed late payment to XXXX XXXX for XX/XX/XXXX. 

Had A & XXXX questioned the one claimed late payment to XXXX XXXX when it questioned the multiple late payments to XXXX and XXXX, I could have provided a Letter of Explanation and offered the documentation of it being an on time payment as well. ( My banking records show that it was actually made early, in late XX/XX/XXXX, rather than on the due date of XX/XX/XXXX. 

There was no mention of this one payment as an item of concern at any time. Instead, A & D is using this one falsely claimed late payment as an excuse for suddenly not abiding by its rate lock agreement or its published lending criteria ( https : //admortgage.com/our-programs/ ) AFTER the Fed raised the interest rate. 

I am now caught in an impossible situation. I can not ignore the request and needs of elderly relatives who were kind enough to help me by co-signing a loan on my property at a difficult time in the past when that was the only way I could get financing. I also can not now reject this loan to apply for something else because due to the increase in interest rates, any current rate would be even more than the fraudulently increased rate above the rate lock A & D is now charging. 

At this point the closing is scheduled for tomorrow ( XX/XX/XXXX ). I will have no choice but to sign the loan papers, but my signature will be under protest and under duress. I will not be agreeing to accept a 5.5 % rate when I have a signed agreement for a rate of 5.25 %. This is extortion. I am being XXXX and told to lie back and enjoy it.