Consumer complaint received 2016-08-09
Product: Mortgage — Conventional fixed mortgage
Issue: Credit decision / Underwriting — 
Company: Neighborhood Assistance Corporation of America ("NACA") (LA)

Unfair & deceptive trade practices ; unauthorized bank account withdrawal ; and " bait & switch '' interest rates. 

The NACA handbook provided at the workshop on XXXX/XXXX/16, as well as the handbook currently available on the website, states that the seller 's interest rate buy-down contribution is limited to 10 % of the property 's contracted sales price. Neither book states that there is a buyer limit nor indicates that the purchase price combined with the total buy down amount can not exceed the regional purchase price limit. Per the handbook currently posted to the website, " Seller contributions for the NACA Buy-Down is limited to 10 % of the property 's contracted sales price. The NACA Buy-Down can not be financed with an increased purchase price. A seller contribution greater than six percent may initiate a risk review by the participating lender to verify that the NACA Buy-Down was not financed as part of a higher sales price. '' It also states, " Maximum Acquisition Cost : The Acquisition Cost consists of the purchase price and the amount escrowed for repairs whether financed or paid out of pocket ( " Acquisition Cost '' ). There may be a maximum Acquisition Cost depending on your income and the area where you purchase. '' There is nothing in either handbook to indicate that the buy down must be included in this calculation. 

After receiving my NACA qualification letter on XXXX/XXXX/16 and preparing to submit an offer on a home, I was subsequently advised on XXXX/XXXX/16 by the NACA Realtor, Office Manager and Mortgage Counselor that buyers are limited to a 4 % or XXXX point maximum buy-down contribution, with a 0.25 % interest rate reduction per point. Then, after multiple urgent requests for clarification, I was advised by the NACA Home and Neighborhood Development Director on XXXX/XXXX/16 that I was given incorrect information. The director advised me that the buyer limit is actually XXXX points ( a 1.625 % reduction ) based on HOEPA restrictions, and that additional training for the Mortgage Counselors was required. She also called back later that day after realizing she had failed to disclose that the maximum acquisition cost includes any buy-down amount from the buyer and the seller contributions combined. When the Mortgage Counselor contacted me on XXXX/XXXX/16 to request the final information to lock my interest rate, my intention to buy-down the full XXXX points in addition to XXXX points from the seller was communicated to her in writing. However, after coming to an inspection repair agreement with the seller and receiving the Loan Estimate from NACA, I again asked for clarification in writing on XXXX/XXXX/16 because the Loan Estimate did not include any interest rate buy-down points and was extremely lacking when estimating what my monthly payments would look like. Only at that point, after my XXXX request on XXXX/XXXX/16, did the Mortgage Counselor respond and advised me for the first time that I was limited to a XXXX point buyer contribution based on income restrictions due to being over the median income for the area. 

Additionally, NACA made an UNAUTHORIZED WITHDRAWAL from my checking account on XXXX/XXXX/16. I assume this was for a XXXX credit check, but I can not be sure because the amount withdrawn did not match either of the XXXX amounts the Mortgage Counselor advised the credit check would cost, and I received no type of receipt or notification that money had been withdrawn from my account. 

A request for written clarification of all buy-down terms, limitations, restrictions and anything else NACA has failed to disclose thus far was sent to the Mortgage Counselor, Home and Neighborhood Development Director, Mortgage Production Trainer, Regional Director, two National Directors and the CEO on XXXX/XXXX/16 and again on XXXX/XXXX/16. I have received no response to date