Consumer complaint received 2022-03-29
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: LD Holdings Group, LLC (MD)

In XX/XX/XXXX, I canvassed several mortgage loan companies to refinance and reduce my previous monthly mortgage payment by about {$200.00}. XXXX XXXX, of LoanDepot, won my application, saying that if I refinanced with LD that it could reduce my monthly mortgage by {$200.00}, bringing my mortgage down from {$1700.00} to {$1500.00}. 

In XX/XX/XXXX, I chose LoanDepot and paid the company {$5500.00} in closing costs, plus {$490.00} for an appraisal and proceeded to refinance my loan and reap the {$200.00} monthly savings. ( See attached XXXX ). All went well until, XX/XX/XXXX. Eight months after I had paid over {$6000.00} the refinance my mortgage, LoanDepot sent me an Annual Escrow Account Disclosure Statement saying that as of XX/XX/XXXX, my mortgage would shoot up {$230.00} to {$1800.00}, monthly ( EscrowStatementShortage ). Thats {$26.00} more than the promised reduction of my mortgage ( by {$200.00} ) Loan Depot said that my taxes had gone up. I contacted the local county tax office who said my taxes had not gone up and it had been consistent for the last three years that I have lived in my home. In fact, in over 30 years of home ownership my escrow had never increased to {$230.00} monthly ; especially after paying so much to reduce the mortgage. 

The county tax office said further that mortgage loan companies have access to the same home history data as the county tax office. In fact, the mortgage loan company didnt have to use an estimate to determine my taxes. It can get accurate tax history by visiting any real estate website and viewing the propertys tax history. So, LoanDepot could have used my actual tax history, rather than an estimate.

Why did LoanDepot use a property tax estimate to determine my escrow amount when it could have used actual tax history? LoanDepot had used a low-balled tax estimate, rather than actual tax rate to offer me the lowest mortgage rate. Then, 8 months afterwards, the actual escrow taxes became due, which was short by {$1500.00}. LoanDepot said that unless I paid that {$1500.00} shortage, that my mortgage beginning in XX/XX/XXXX, would be {$1800.00} or {$26.00} more than my previous mortgage that I LD to have reduced. 

On XX/XX/XXXX, I made the mortgage payment of {$1800.00} as demanded by LoanDepot, to avoid a late payment, while I tried to resolve the causes of this sudden mortgage increase. That payment reduced my mortgage to {$1600.00}, netting me a refinance savings of only {$99.00} from my previous mortgage of {$1700.00}. 

After complaining to several officials at LoanDepot, XXXX XXXX, Servicing, Escalation Resolution Specialist, on XX/XX/XXXX, acknowledged that the tax amount used at closing was incorrectly used and therefore a refund is being sent to you ( See attached LDAdmission ). The specialist, concluded that the amount of the refund is {$6.00} ( See attached LDResolution ). LDs resolution had added insult to injury.

Had I known that my refinanced new mortgage would be reduced by only {$99.00}, I would not have paid over {$6000.00} to have it refinanced. The benefit was clearly not worth the cost to me. In addition, my mortgage increased from {$270000.00} to {$280000.00}, adding an additional {$10000.00} to my mortgage. There has been no reasonable benefit to me in this refinance transaction with LoanDepot for the money I paid. I believe that what LoanDepot did to me was unethical, if not criminal. I feel like I have been robbed. At a minimum, I believe that I should be refunded the entire amount that I paid to refinance my loan with LoanDepot ; thats over {$6000.00}. The refund that LoanDepot offered me as resolution, {$6.00} does not compensate me for the financial expense I incurred, resulting from their mistake. And, it does nothing to discourage LoanDepot loan officers from repeating said mistake. 

I appreciate the Consumer Financial Protection Boards assistance in resolving this matter.