Consumer complaint received 2021-11-04
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Better Mortgage, Inc. (TX)

XX/XX/XXXX - Applied for a refinance through better mortgage Through the process I let the lender know that we were refinancing my first lien primary mortgage and a 2nd lien home equity line of credit. I let the loan officer and messaged the team through online portal that my loan needed to be closed as a Texas F2 refinance. I am in the XXXX and know that lenders will often close previous home equity loans as a new home equity in the state of TX. The TX constitution was amended to allow refinances of previous home equity loans to not be classified as new home equity loans. A home equity loan is closed in TX as a TX 50 A6 ( section of constitution ). Refinances of previous home equity loans which are not pulling new cash out are closed as a TX F2 ( section of constitution ). After 70- days of process and paying for an appraisal we were fully approved and ready to close. The notary performing the closing notified me on closing day that the documents she received were for a Texas home equity loan. I alerted my loan officer that this was not what we had discussed. He assured me he was working on it and correct loan documents would be provided. I was contacted later in the afternoon by the notary stating she had a new set of loan documents. When she came to sign the documents were still in fact for a new Texas home equity loan. I did sign as I was concerned I would lose my locked interest rate. I notified the loan officer ( XXXX XXXX XXXX and he said the issue had been escalated to the highest lever. I had a discussion with him and his supervisor ( XXXX XXXX ) and she was aware that there were unique laws in the state of TX that governed home equity and previous home equity transactions and that her underwriting team was working on it. I am in the mortgage industry and explained to her that it was not an underwriting issue. To XXXX XXXX the loan is considered an " agency cashout '' that is the classification for any refinance of a lien that was not used to acquire the property ( i.e. a Home equity loan or line of credit ). I further explained, for the 4th time, that it was how the loan was documented at closing that was the issue. They needed to speak with their document preparation attorneys as they could confirm I was correct and the loan should have closed as a TX F2. The issue at hand is that if they closed the loan as a home equity lien then I would not be able to get a subsequent home equity loan in the future without fully paying them off or refinancing my loan in whole. That is the point of the law in TX for an F2 refinance. Your new loan is not documented as a home equity lien, therefore allowing you in the future to get a separate home equity loan if desired. The manager ( XXXX XXXX ) stated she was working on it, assured me that my interest rate would be honored and her team was working on it. I again, implored her to speak with her attorneys as the team at Better mortgage did not understand the TX laws and was closing my loan incorrectly. It became clear after multiple conversations with the Loan officer, processor and manager that no one at the company knew what a TX F2 mortgage was. This is why I requested multiple times that they speak to their attorneys, XXXX XXXX and XXXX, to verify. I was told at XXXX the evening of my loans funding that the Better mortgage would not close my loan in any other way than a TX home equity loan. So, I was forced to rescind the funding, eat my appraisal fee and waste 70 days of tasks from them.