Consumer complaint received 2019-10-25
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (PA)

In XXXX, I was approached by XXXX XXXX saying that my husband and I were perfect candidates for a refinance of our VA mortgage. Our interest rate is currently 5.65 % and they said that we would be able to refinance at 3.5 % interest bringing our payment from almost {$1600.00} a month down to {$900.00} before PITI. I made the gentleman, XXXX XXXX, aware that I am in the XXXX XXXX XXXX in settlements so I familiar with closing costs and such and he assured me that we would not have any out of pocket closing costs and that we would be able to close in 7-10 days with no payment due for 2 months. We had just purchased our home on XX/XX/2018 but Mr. XXXX waited until almost the end of XXXX to inform us that due to VA guidelines we were unable to close until XX/XX/XXXX because we had to own the home 210 days before we were able to refinance. This was after he told us not to pay our XXXX payment because he had the final payoff amount and it would mess up the amount. I immediately paid the XXXX payment and moved forward with our mortgager. ( With a late on my husbands credit ) In mid XXXX, Mr. XXXX began to approach us again saying that all we had to do was get the final paperwork because everything was done and we had the final clear to close so after the 26th we were going to be closed. This NEVER happened. Yet again, he said " don't make your mortgage payment because it will affect the final payoff ''. As I said before, I work in settlements so I know that once the bank has payoff they don't want any other payments so I listened to the broker. Every week, there was an excuse or no communication. We get to XXXX and I am looking at my home owners insurance policy where I notice that our policy amount has increased over {$10000.00} and the name of the mortgager is Carrington Mortgage. ( The new bank ) This was changed in XXXX which I came to find out in XXXX but was never corrected when they found out that we couldn't close on the mortgage. I asked XXXX in XXXX why this was the case and he never responded to me. He did however tell me again that we were going to be closing and that our XXXX and XXXX payments were going to be taken care of. Come XXXX and I find out that Carrington is still listed and we are still not closed on the refinance. I finally told XXXX to forget the refinance, I made XXXX 's payment once I found out that XXXX began the foreclosure process on our home and I spoke to my insurance provider and worked with them to get my original mortgager back on my home owners insurance policy as they were to be as of XXXX. I was also informed that if there were to be a fire or catastrophic event to our home, it would have had to go to litigation to determine who was the rightful mortgager on our home before any policy would be paid to repair the damages on our property. I made XXXX XXXX AND Carrington Mortgage aware of this IMMEDIATELY and told them that I was not only going to notify you but I was filing a complaint with the XXXX, the attorney general and consulting an attorney. XXXX XXXX, the Vice President of Operations for Carrington Mortgage called me personally and said that they only ever had an application for us and said that XXXX  was conduction shady business practices and told me to file a complaint with you a month ago which I did. I have since found paperwork that we signed with Carrington that were rate lock papers AND received a denial letter from them right after I told them I didn't want the refinance anymore stating they couldn't give me a refinance because of an incomplete application. When I met with my attorney, he advised that I check my husbands credit score to see how the late payments affected my husbands credit. It dropped my husbands score almost 110 points. I emailed Carrington and XXXX and told them my out of pocket expenses and that they affected my husbands credit dramatically and set my house in to foreclosure and gave them 72 hours to contact me with what they were planning on doing to help us recoup our of pocket expenses. XXXX XXXX from XXXX XXXX called me and told me that he would give me a " Free '' refinance where he would guarantee that my husband would get a 3 % VA mortgage with Carrington and XXXX would get no payment or closing costs so that I would not complain to the CFPB or the VA about the less then honorable business practices. When I emailed him back the next day and told him that I didn't want a loan with Carrington and that I wasn't trying to get free money from anyone, all I wanted were my out pocket expenses he emailed me and told me I was trying to extort money from him and from XXXX XXXX. My husband and I were trying to refinance our home to get a lower interest rate. That's it. If were weren't eligible, they should have been honest and we would have stayed with our current lender. We had never been late before that. Now we have late payments and it looks like we can't pay our bills which isn't the case. These people shouldn't be allowed to do this to hardworking people who just want to stay in their homes. Please help us