Consumer complaint received 2021-02-26
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION (KY)

My husband and I applied to refinance our existing mortgage with cash out to pay off debt thru Amerisave Mortgage Corp on XXXX XXXX, XXXX. We went thru the entire application process over the phone and were told that we got approved with a lower rate of 2.75 %. Our credit was pulled during the application process once we provided our consent. 

We got set up on their network to receive and share documentation during the loan process. Over the next few weeks we received requests for documentation that would be needed to process the loan, got the appraisal done, and provided various authorizations to share information, including getting the payoff n our current mortgage. Things seemed to be moving along. The latest documents we received were the various disclosures on XX/XX/XXXX. We also received loan payoff notice from our current mortgage company, which included an expiry date of XX/XX/XXXX. Based on that information, it seemed things were moving along and we would have the loan closed by year-end. Without any clear direction, we were simply guessing and hoping. 

Adding to the confusion was the fact that our mortgage had recently been sold to another servicer right as we started the refinancing process. That first payoff was done with the current mortgage servicer. We had received notice in the mail with information on how to handle the switch, where to sent payments etc. Any payments sent after XX/XX/XXXX were to go to the new servicer. 

Then things stalled, but since it was XXXX, we didn't really notice and just didn't have much time to ask questions. So, since there was an outstanding loan payoff with our old servicer, which didn't expire until XX/XX/XXXX, we thought it best to not make the XXXX mortgage payment since we thought it would mess with the refinancing efforts. And based on past experience, loan closings usually take less than 6 weeks from initial application ( in this case XX/XX/XXXX ). So we weren't worried. 

Well, we should've been worried. Since there were no expectations set by the loan originator, XXXX XXXX, when we first applied, we thought it was a sure thing and that everything was moving along. That lack of transparency worked against us. Because of the missed XXXX payment, it ended up being > 30 days late with it not being paid until XX/XX/XXXX, and the XXXX payment wasn't made until XX/XX/XXXX. So with 2 payments in a row that went > 30 days, our loan was declined, which according to Amerisave, is XXXX XXXX and XXXX XXXX rule. My concern is how they knew we were late. The only way to know that would've been to have pulled our credit again, which we didn't authorize. Again, since credit had already been pulled, I wasn't that worried about those late payments since I know, with being in banking myself, that any authorization is only good for one time. 

Starting in late XXXX, things started to get frustrating. We received communications in the form of email and phone calls from the loan processor, XXXX XXXX, who seemed to be a little more helpful. She introduced herself, indicating that she was gathering everything needed for the loan approver. We told her we thought it was already approved, and she advised that it was just conditionally approved, saying that they needed to review all documents provided. That was not made clear by XXXX. We also weren't told by XXXX on the various steps our loan needed to go thru. Again, though, I wasn't worried about the late XXXX payment since credit was pulled before then. 

After XXXX cleared up a few misconceptions, we requested that closing be before the end of the year since we had travel plans then and wanted to make sure we were available for the closing. She advised that that might be too quick, that it usually takes a couple of weeks, but would see what she could do. After that, we would get various updates regarding timing, saying that they are way behind due to recent high demand for refinancing. These updates included being told it would be 2 more weeks, then another 2 weeks, and this carried on until mid XXXX. Some of the communications included requests for us to show proof of mortgage payments, then updated pay stubs, then updated W-2 's, etc. Never once were we told that because of us being > 30 days late on 2 consecutive payments that we were disqualified from approval of a refinance with cash out, even if the cash out was to be used to pay off other debt. 

Thus, without full transparency from the beginning, no expectations set, credit being pulled more than once, and being led on all during XXXX and into XXXX with no indication that we would be declined due to late mortgage payments, I feel we have a valid complaint again Amerisave.