Consumer complaint received 2020-12-01
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Meadowbrook Financial Mortgage Bankers Corp. (NY)

Note : I tried to fix the issue with the mortgage company by sending a letter to XXXX XXXX, the CEO of the company on XX/XX/2020. He did not reply my letter ( the letter is attached here ). 

XXXX XXXX, CPA, Mortgage Loan Originator and Branch Manager at XXXX XXXX branch office of Meadowbrook Financial Mortgage Bankers Corp. ( MFMF ), was engaged in unfair, deceptive, or abusive acts and practices ( UDAAPs ) which caused us significant financial injury. He defrauded us into accepting an FHA mortgage loan in place of a 30-year conventional fixed rate mortgage loan even though we made 20 % down payment of the value of the property when homebuyers generally pay 3.5 % down payment for an FHA loan. 

We trusted XXXX because he is not only a mortgage loan originator, but also a Manager of MFMB, and a Certified Public Accountant ( CPA ) a member of an honorable profession. We never imagined he would commit mortgage frauds ; we trusted him with utmost good faith. Before we applied for the loan XXXX did not provide us with the booklet titled, Special Information Booklet ( Your home loan toolkit : A step-by-step guide ). XXXX delivered us a Closing Disclosure which stated that we shopped for some services when in fact we were not given a chance to shop for, and we did not shop for, any services. All the service providers that were used were required by XXXX including those that were misstated in the section C. Services Borrower Did Shop For. 

XXXX duped us into accepting an FHA mortgage loan with 20 % down payment but still with mortgage insurance, without our knowledge or permission. Moreover, he caused us to spend additional {$11000.00} in mortgage insurance premium for closing costs which he added to the total mortgage loan amount, and another {$530.00} per month for 11 years, for a total of {$70000.00} ( {$530.00} x 12 x 11 ). Even after all these expenditure, he was not satisfied ; he charged us 1.375 % of the loan amount or {$9000.00} as points, and another {$6400.00} as loan origination fee, without our knowledge and without consulting with us. He was not still satisfied he charged us an interest rate of 3.625 % with annual percentage rate of 4.714 % when the prevailing interest rate was less than 3 % at the time of closing. 

We never asked XXXX for owners title insurance policy which is optional, but he duped us into spending additional closing costs of {$3600.00} in optional title insurance without our permission. Apparently, he received some kickbacks and illegal payments from the title company for referring unwanted and unnecessary services to maximize his income illegally. Also, we were not provided with a copy of the title insurance although we paid for it. Even though we paid {$620.00} as appraisal fee, we were not supplied with a copy of the appraisal report. 

At the time of closing we had to sign a lot of documents without reading their contents of which we were given only copies without our signatures after the closing. On one document concerning the survey, titled HOLD HARMLESS & INDEMNITY AGREEMENT FOR SURVEY, it stated that we had held MFMB harmless although we were not given a chance to do a survey. We wanted to do a survey but XXXX did not mention about that. We will have a survey done and will not hold MFMB harmless if there are any defects or issues uncovered by the survey.