Consumer complaint received 2015-03-31
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (AZ)

On XXXX, we attended a XXXX workshop. The mortgage opportunities sparked our interest. The ability to close loans with interest rates as low as 0.25 % was described. We spent months prepping and waiting to receive an appointment for our XXXX consultation. On XXXX, we had our XXXX consultation. At this meeting we outlined our main goal to purchase a home with an interest rate of 0.25 %. Over the next several months we had consistent email correspondence and further documentation emphasizing our goal to buy down the interest rate. At no point during the months of communication were we informed of XXXX or the lender 's inability to follow through with their advertised and agreed upon interest rate buy down program. On XXXX, we received loan approval. Contact from us to XXXX was made that day : " Our buyer 's contribution ( with today 's interest rate in mind ) will be {$49000.00} to buy the interest rate down to 0.25 % ... '' We signed a purchase contract on XXXX, and put {$45000.00} in an earnest deposit account. Crucial to our complaint is that specifically written in the purchase contract was, " All earnest monies deposited into escrow account will be used to buy down interest rate for the XXXX conventional loan program to satisfy the conventional loan. The loan will be {$330000.00}. '' This purchase contract was provided to XXXX and the lender without any dispute. On XXXX, we were contacted with a concern regarding the earnest deposit amount. We wrote a letter explaining our confidence in our earnest deposit decision. On XXXX, we were contacted with a list of items requested by the lender ( showing that a Bank of America representative/underwriter had viewed our file in full, again ). In an email chain of communication that day, XXXX wrote, " ... also I need to know how much we are going to use to buy down the interest rate. '' My response was, " We will be buying down the interest rate all the way down to 0.25 %, whatever the cost, we have the funds. '' On XXXX further concern from XXXX regarding the earnest deposit amount was expressed. Again, we responded by explaining that we understood the risk, but were confident in our decision because the monies would be spent to buy down the interest rate. On XXXX a friend who had begun the XXXX process said that it was stated at her workshop that it was no longer possible to buy down the interest rate to 0.25 %. *At no point during the months of communication with any XXXX employee was it suggested to us that we would not have the ability to buy down the interest rate to 0.25 %. Our realtor immediately contacted XXXX. The conversation was shortly ended by XXXX stating that she would no longer be able to assist in the matter due to it becoming a legal issue. The emails were forwarded to me, which verified that buyers can now only buy down the interest rate a total of XXXX points. Days later XXXX explained that our issue was due to the Dodd Frank/Hoepa laws. All lenders were aware of the new HOEPA proposed changes. Our communication of our buy down goal came to XXXX in XX/XX/XXXX, more than a year after effective changes. All parties had adequate time to notify us about the changes to their specific policies and how they would affect XXXX services. The loan we received through XXXX was predatory, fraudulent, deceptive, and precisely the definition of bait and switch. Our chosen standard of living is now drastically different due to a significantly higher monthly payment than was originally intended, which will ultimately cost us nearly {$100000.00} in interest. A more detailed description of this situation is supplied with our complaint in letter format, as well as copies of all above mentioned, and additional, communication and documentation needed.