Consumer complaint received 2017-06-23
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: GUARANTEED RATE INC. (DC)

Guaranteed Rate is requiring {$700.00} to provide a Loan Estimate. I believe this contravenes regulations providing that the only fee a lender can ask borrower to pay prior to providing a Loan Estimate is a fee for obtaining a credit report. I am helping a friend apply for a mortgage from Guaranteed Rate. He requested a Loan Estimate.
1. The first response he received was : " Hello, Below are the estimated numbers for a cash out mortgage to XXXX. Please call me when you have a few minutes to talk. ... This is NOT a loan estimate. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan. Summary of Cash at Closing Quote for Debts to be Paid Off $ Lender Fees $ Appraisal Fees $ Prepaid Interest 30 days @ $ /day $ Insurance Escrow Reserves 6 months @ {$100.00} /month {$600.00} Tax Escrow Reserves 6 months @ {$100.00} /month {$600.00} Title Fees {$200.00} Lender 's Title Insurance {$620.00} Recording Fees {$160.00} Total Costs $ Total Loan Amount $ Total Credits $ Total Estimated Cash to Customer ( $ ) YOUR LOAN PROGRAM Estimated Value {$400000.00} Total Loan Amount {$300000.00} Interest Rate 3.875 % APR 4.002 % Product Agency Conforming XXXX 15 Year Fixed YOUR MONTHLY HOUSING COST BREAKDOWN Principal & Interest $ Insurance {$100.00} Taxes {$100.00} TOTAL $ The example of loan costs illustrated above does not represent a " Loan Estimate of Closing Costs '' that you will receive once you apply for a loan. <P/>2. So he again requested a loan estimate : " We 'd like to progress this. Can you provide a Loan Estimate? Based on your email, I think we 'll want to move forward with an appraisal, but let 's get the Loan Estimate first. '' 3. The response was : Subject : NEXT STEPS *****PLEASE READ***** Dear, Below are the next few steps well need to complete to start the processing of your loan application. Its important we complete these initial steps as soon as possible : - Within the next 24-48 hours you will receive an email from XXXX requesting you electronically sign the initial disclosures. This will provide us the necessary authorization to move forward, so please do this as soon as you are able. The appraisal will be ordered and scheduled with the listing agent. Once we receive the completed report we will forward you a copy via email for your records. - Once you have signed your initial disclosures you will receive an email requesting a payment of {$700.00}. This is a deposit for the appraisal and application/underwriting fees and will be credited to the loan at closing. - My team will review the documents we already have on file for you. They will request any missing or updated items needed to submit your file to underwriting for initial approval. - While we are processing the loan, if at all possible, please refrain from any significant changes to your credit profile, including late payments, credit inquiries, opening or closing of accounts or significant balance increases. - If you need to make any large deposits or transfers with any of your bank or investment accounts please discuss with me beforehand to confirm these can be documented according to program requirements. ''