Consumer complaint received 2020-05-04
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Stearns Ventures, LLC (OR)

I started a mortgage cash out refinance on a manufactured home with Stearns Lending XXXX XXXX office in XX/XX/XXXX. I asked for cash out to pay off some debt, get away from mortgage insurance, to be able to complete some home improvements and we wanted to have payments around {$1900.00} per month. 

XX/XX/XXXX The original documents are sent, but were incorrect as they were for a traditional loan with no mention that the home was a manufactured home, which I did not know at the time would not work for a manufactured home. It did not have the loan amounts we requested and other mistakes regarding length of employment not matching the information provided on the application I had submitted. I refused to sign the documents until they were corrected. They were never corrected, so remained unsigned until nearing what we thought would be the end of the process when we were required by the loan processor to sign incorrect documents or she would not move our refinance forward. 

XX/XX/XXXX I received new loan documents for an FHA loan. Discussion about increasing cash out so we are not paying ridiculous closing costs and outrageous mortgage interest for not a lot of cash out. 

XXXX XXXX received new documents for {$310000.00} loan, but estimated payment was {$1900.00} which was more than we wanted to pay. 

XX/XX/XXXX appraisal is ordered. 

XX/XX/XXXX appraisal is completed. 

XX/XX/XXXX I receive a call from an appraiser stating he has been asked to complete our appraisal. I let him know we already had one and call Stearns to ask why we need another appraisal only to be told the first appraiser was not certified for FHA. 

XX/XX/XXXX second appraisal is completed. 

XX/XX/XXXX received rate lock with loan of {$290000.00} payment under {$1900.00} per month and estimated cash out of {$53000.00}. Things are looking good, but this is taking a long time and COVID 19 just hit. 

XX/XX/XXXX received new loan documents with {$310000.00} loan, payments {$1900.00} which was ok because closing includes payoff of high interest debt. Cash out was {$42000.00} and rate of 3.625. Perfect!!! This is where we want to stay!!!! 

XX/XX/XXXX documents are signed by myself and my husband. Perfect!!! This is exactly what we have waited so long for. 

This is where the numbers start to get changed without any conference with myself or my husband. I notice on the loan info screen that the estimated payment went up to {$1900.00} per month. I question this and find out that someone in the XXXX office has estimated our homeowners insurance at {$300.00} per month which is 3 times the average for our area and the original estimated amount in the loan documents. I have been asked by the loan processor 5 times for our insurance information which I provided by email and telephone no less than 5 times. I provided documentation that our homeowners insurance is {$1000.00} per year which is {$91.00} per month. I find out that the loan processor has made contact with my husband s employer and disclosed that documents that he was supposed to sign had been missed. We found out from his employer before Stearns told us that there was a signature missed on one of the documents I had faxed in. I am absolutely livid ... .how dare she discuss anything other than his employment status. This is beyond unprofessional. She has now violated my privacy rights, she has ignored my responses to her questions to the point of harassment, she has changed numbers on documents we did not know about. 

XX/XX/XXXX appraisal does not indicate required hurricane strapping on foundation. I dig back to XXXX files of appraisal from the original purchase of the home to supply appraisal report and photos clearly showing hurricane strapping is in place. 

XX/XX/XXXX I receive documents with a different loan amount and lower payment that was explained off as the difference that changing our homeowners insurance correction made. I believe at this point that we are still paying off debt and receiving {$42000.00} cash out. 

XX/XX/XXXX I call XXXX XXXX, manager at the XXXX office with my concerns that we have now had incorrect documents, multiple requests for information already provided, lack of communication, with his loan processor, multiple expirations and extensions including 2 credit checks, rate locks, supplying paystubs, bank statements again, and all he has to offer is to ask me if I want to cancel the transaction after months of working on it, and 2 appraisals that I will have to pay for. His offer was to look into it an call me in the morning. I do not hear from him until XXXX XXXX  the next day. 

We are now just days away from another rate lock expiration, I am an essential employee working in lockdown at our state employment department, attempting to navigate this mess that has gone on nearly 4 months into a national pandemic. I receive and sign documents that according to my knowledge, were additional documents required to conclude the loan at the terms we signed the papers for on XX/XX/XXXX. My understanding of what we were signing was going to give us what we had agreed to which is the payoff of the previous mortgage, a credit card, and a boat loan with just over {$42000.00} cash back at closing. At no time during this entire transaction did anyone sit down with us to discuss what all the papers we were receiving and being requested to digitally sign or fax and sign mean. When I hesitated and questioned why I would sign the original documents that were incorrect, I was told that they were not binding. At this point, we have already signed 8 different disclosures, provided multiple copies of documents via digital website and email. 

I receive a call from XXXX XXXX wanting to make an appointment to sign closing documents. I have never been through a closing outside a traditional bank and expect that when the title company says they want to make an appointment to sign that the title company representative and a notary will be at the signing to go through each document and explain them to us as was the case when we originally purchased the house. The title company person tells me her office is closed due to COVID19 and they have a mobile notary that can come to me. I tell them that my office is also closed and I do not get home from work until nearly XXXX XXXX  ( I live nearly 50 miles from town ) and that my husband will already be asleep as he works graveyard. We make an appointment for XX/XX/XXXX outside my office under the portico ( old bank drive thru that is somewhat protected ). 

XX/XX/XXXX To my surprise when I exit my office doors, there is no title company representative and the mobile notary has papers spread out across the tailgate of my pickup truck in the open parking lot and she has my husband already halfway through signing what looked lied a ream of paper. She even made a joke about us winning for having the biggest file. At this point, I believe there is no choice but to continue with the signing. While I am trying to get through this debacle, the wind is blowing papers all around, there are notary stamps laying on papers, the stack is binder clipped so they can not be read, its so bright you couldnt read them anyway, the notary is pointing indicating where a signature and initials are required while carrying on a conversation with my coworker about LEGOs. There was no explanation of what we were signing, what our rights were, or what to expect at the end of this. Had this been handled professionally, I would have stopped the process as soon as it was explained that the loan terms were no longer what we agreed to when we signed the documents on XX/XX/XXXX. I would also have taken my right of rescission had that particular document been singled out or explained. 

XX/XX/XXXX I find out that though all documents have been signed, we still need a foundation inspection. We are able to make arrangements to have my husband at home to let the inspector under our home for the inspection and are able to have the surprise {$600.00} fee taken from the loan payout. 

I was given an estimated closing date of XX/XX/XXXX. All day, on the XXXX I was still receiving requests from the title company for help obtaining payoff information for the boat loan so they could fund the loan. At XXXX XX/XX/XXXX, I was surprised to receive notification from my bank of a pending deposit from closing that was nearly {$23000.00} less than what we had agreed upon. I immediately called my broker to find out what had gone wrong and what could be done about it. I sent an email requesting this be backed up and corrected. The next day I was told that XXXX XXXX, the manager at the XXXX office, had simply said it was too late. 

My broker reached out to him to let him know what had taken place at closing and to ask to make this transaction right. He refused. I called Mr. XXXX the evening of XX/XX/XXXX and asked him to contact me XX/XX/XXXX to discuss what had happened and to ask him to make it right. Mr. XXXX has not returned my call. I have also sent an email to the corporate office of Stearns in XXXX XXXX, CA with no response. 

My broker has reached out to the underwriter also and has had two phone appointments that have not been followed through with.