Consumer complaint received 2018-04-03
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: ALTERRA GROUP, LLC (GA)

XXXX XXXX XXXX I recently purchased a house using a VA home loan with XXXX XXXX XXXX My very first loan estimate was for {$190000.00} at 4 percent interest rate with monthly principal and interest {$940.00}. My estimated closing costs were {$8400.00}.

Let me first start off by saying I had a seller credit of {$7000.00} I questioned my loan officer multiple times considering I received a few other loan worksheets with my closing costs being much lower but was told my Alterra that those were not final numbers and they would be around the same price I had been quoted for on my loan estimates. I have the emails and texts messages. I told them I was going to go with another lender and once again I was assured that the loan would be the best one I could get and those other lenders were just telling me things to get my business. 

On the XX/XX/XXXX I received another updated loan estimate with the loan amount of 4.625 % with a monthly principal and interest of {$1000.00} and my estimated monthly payment of {$1100.00}. The estimated cash to close was {$13000.00} and my cash to close was {$1400.00}. The estimated closing costs went from {$8400.00} on the first loan estimate to {$13000.00} on my last loan estimate. 
I asked again if these were final numbers and I was told no. Then my closing disclosure was sent and those numbers were My interest rate was 4.625 % and my monthly principal and interest rate was {$1000.00}. My closing costs were now {$5600.00} and I asked once again if these were final numbers and I was told no. 

We were supposed to close on XX/XX/XXXX and it was pushed back two times due to the closing attorney not having the proper paperwork. They were not receiving anything from Alterra. I show up at XXXX on the XX/XX/XXXX and my realtor calls at XXXX and says come down we have a problem. On Monday I wired XXXX to close and was under the impression I would get about 2500 back from the law office. 
Seller paid XXXX in closing costs so they tell me my closing costs are now XXXX MORE on top of the XXXX I already paid. My closing costs increased nearly 400 %. They added discount points to my loan without even asking me to begin with and they charged me thousands of dollars for it. I broke down and didn't know what to do. I had to be out of my other house because the government is foreclosing on the company for fraud, my earnest money would have disappeared and I could have been sued by the sellers. I made four trips from the law office to the bank. The closing attorney still had not received half of the paperwork and when they asked to provide an explanation of the closing cost increase, Alterra  never responded. We were there for 7 hours, both realtors and the closing attorney said they have never seen anything like it in over 40 years between all of them. I ended up having to pay {$2000.00} more on top of the {$3500.00} I had already sent compared to the {$1400.00} I was supposed to pay. I had seller paid concessions of {$7000.00} and my closing costs were over {$14000.00}. I was also made to wet sign documents and not date them so Alterra could go back and date them to the day they needed them to be dated. I also have those emails. I was told it was a typo and a mistake by Alterra. 

I have had VA mortgage experts look at this loan and tell me this is the most ridiculous and abusive loan estimate they have ever seen. 
The seller credit should have covered all of my closing costs and I should have gotten back the amount I provided to the closing attorney Other lenders have concluded that my VA rate would have been 4.25 to 4.375. Alterra has the highest rates in the country. My realtor repeatedly asked for them to provide her with the loan emails and Alterra left out the important ones and said it was a server error.
The VA central office in Washington has been notified and said this is the most abusive and predatory lending practice they have ever seen. 
My credit score was run through another lender and the scenario, rate lock period, seller credit, and transaction type and your seller credit would have covered nearly ALL your closing costs and those rates would have been around .3750 % to .500 % lower than what Alterra  gave me. 
They used the seller concessions that I was offered to make them more money. They charged me a rate .625 % higher than what it should have been for a Veteran with a credit score like mine and the time I locked. 
This is a worksheet from another VA lender My Lender Origination Charges on your loan would have been : {$450.00} Appraisal {$84.00} Credit Report {$10.00} Flood Certification {$79.00} Tax Service Fee Thats it..

When you add that to the title fees, attorney, escrows, etc. Youre out of pocket cost would have been XXXX. 

I was charged {$8800.00} in lender fees on a {$190000.00} home. They used my seller credit to pay for their fees, thus making them more money and sticking me with the added costs. The {$7000.00} was more than enough to pay for all third party fees had they not charged me {$8800.00} in junk fees and 2.65 % in discount points, allegedly. 


They also gave me an XXXX  homeowners insurance policy which has a deductible of XXXX dollars. I just got a quote from XXXX for the same premium and a XXXX deductible. 
I didn't know I was getting XXXX nor did I decide on that high of a deductible. 
This is so abusive. 

The home has had nothing but massive leaks and major problems since moving in. This home is not worth {$190000.00} dollars so I want the loan rewritten with a new appraisal to cover ALL the significant defects that extremely lower the price of this house. I would have never paid XXXX for this house had the appraisal and home inspection been done correctly. This house is worth nowhere near what I paid for it.