Consumer complaint received 2015-07-12
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: GEORGE MASON MORTGAGE, LLC (MD)

I was referred to George Mason Mortgage and XXXX XXXX, NMLS # XXXX, by XXXX XXXX as a result of my interest in purchasing one of XXXX 's townhomes in XXXX XXXX, MD. I went to a presentation at the homesite where XXXX was giving a presentation on options available to 1st time homebuyers to obtain down payment assistance. At that time, he informed the group of a program where 1st time homebuyers with greater than {$25000.00} in student loan debt could get a loan with an interest rate of 2.75 fixed for 30yrs and XXXX down payment assistance. The program was a new initiative that had just come out the day before the presentation. I was very excited about the program because I had a great deal of student loan debt and would not have been able to purchase a home with payments I could afford otherwise. I made application the following day for the loan and was told by XXXX that I was the very person this program was made for and I met all the qualifications. I followed by putting a contract on a to be built home that would be completed around when my current lease would end which was in the XX/XX/XXXX/XX/XX/XXXX timeframe. I cooperated fully and provided all documentation requested in order to qualify for the program mortgage loan. I received a preapproval letter and good faith estimates that included the program funds and interest rate. I picked out all my preferences for the home at the builders design center and made a home choice based on the amount I was told by XXXX that I could afford. XXXX months later, I receive an email from the salesperson at the builders homesite, asking me to come to a meeting with her and XXXX regarding financing options because the money from the program I applied for was running out. It also said not to worry because my funds were secure but they wanted to have a back-up plan. I was confused and did n't understand why we needed a back up plan if my funds were secure. At the meeting I was told that the initial program did run out of funds and there was a new program but with a higher interest rate and only {$5000.00} in down payment assistance. I asked why should I have to take the XXXX program when I had already applied for the XXXX program. I was then told that I had to close on the home within XXXX days and my home would not be closed in the XXXX day window. I asked why was I not told about the closing timeframe so I could have made another choice and there was no explanation. I was told that there was a possibility that I could receive an extension on the closing date but that even the extension would not be able to extend to my closing date of XXXX. I made it clear that the only way I could afford to go through with the purchase on the home is if I received the terms of the original program because the alternate program would make my mortgage payment too high. I sensed that there was something I was not being told and called the state office that managed the program the following day. To my horror I was told that I was never submitted for the program by my loan officer. I called XXXX and told him that I was contacting the state program office to ask for an extension to which he responded, " do n't do that ''! After telling him that I contacted them, he finally admitted that he neglected to submit me for the program with the excuse that it still would not have mattered since I was not closing within the XXXX day timeframe. I asked him again why he did not tell me this information up front and he had no real answer. I have requested that his company make this error right by buying down my interest rate to what it would have been in the initial program and provide the additional {$5000.00} in down payment assistance that was lost. He has been unwilling to correct this error that has cost me my only chance to purchase a home and I do not think this is right.