Consumer complaint received 2018-02-15
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: STATE FARM BANK, FSB (AZ)

State Farm Bank Deceptive Mortgage Practices. 

On XX/XX/XXXX, I contacted my insurance agent XXXX XXXX ( I have been with State Farm 15+ years ), about their mortgage product as well as insurance quote and auto rates. XXXX quoted me a rate of 3.875 % and no lender fees. We spoke what items would be needed and he stated he would email me an application checklist. Due to the quote I called the next day and left a message to confirm the no fees, I also sent an email. He replied back XX/XX/XXXX and left a message and replied to my email confirming no fees. Since he confirmed no fees, we did a verbal application over the phone, I gave him permission to move forward with the application and pull credit, and I sent all items needed. At that time of confirming fees, they had taken an application, received all financials, bank statements, XXXX, and paystub, knew the product, the term quoted, new the address, and all needed information. 
Then On Monday, he calls to review and take a deposit to look in. The rate now has increased to 4.25 % but with a XXXX discount point ( {$1300.00} ). After getting off the phone I access the disclosures they emailed ( this is Monday night after XXXX my family waiting to have dinner ) a noticed a {$470.00} processing fee, then fees I can not Shop for Appraisal {$510.00}, Credit report {$36.00}, XXXX XXXX {$7.00}, and XXXX XXXX {$70.00} for total {$620.00}. It also had estimates for title closing fees I expected, taxes and government fee I expected, prepaid I expected, and escrow I expected. All fees in total {$5200.00}, but the origination total of {$1800.00} and services fee {$620.00} are {$2400.00} in fee not expected and are regulated. 

Nothing changed same program fixed 15 year fully amortized refinance cash out, on primary residence. 
I email and called the next day stating this is not what I was told. I spoke to their mortgage department and was told they do not have a refinance no cost program and the rate would have had a XXXX discount point. 
I asked for it to be escalated. 

I spoke to two other people the week of XX/XX/XXXX. On XX/XX/XXXX, I followed up with XXXX. She said they would waive the processing fee but I have to pay the other fees. This is deceptive ; I had gotten other quotes I went forward based on the cost they stated. I allowed my credit to be pulled based on that. I have been going back in forth with a XXXX XXXX, he unwilling to escalate it and continues to say they will on waive the one fee. I continue to ask for it to be escalated due to the bait and switch. 
If I go somewhere else rate have gone up significantly since that date. I could get a lower rate somewhere else back then. XXXX once you pull credit and their multiple days between you credit score is affected and rates are based on score so if score goes down due to pull rate go up State farm should honor what they told me to get an application. In addition, they are not allowed to change those fees based on regs. 
The hardest thing is trying to deal with this, plus normal job, and my XXXX kids. This is not what intended when calling a company, which I have been with for multiple products 15+ years XXXX has a NMLS number XXXX for loan origination license and is authorized to conduct business per NMLS web site. The whole point of these licenses is to build trust, clients are not taken advantage, to say one thing, and change is deceptive. State farms own web site the president talks about ethics and trust. 
XXXX XXXX agent XXXX XXXX XXXX XXXX XXXX XXXX XXXX , AZ XXXX XXXX XXXX XXXX XXXX service recovery team XXXX XXXX supervisor XXXX NMLS XXXX