Consumer complaint received 2016-04-14
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: JPMORGAN CHASE & CO. (NY)

Re : Claim for repayment of unwarranted expenses which occurred during my mortgage refinance ======================================================= **Players and Background : ** XXXX and a certain party dba 'Mortgage Family, ' provided a mortgage refinance for me, paying off and consolidating my two residential mortgages ( one of the mortgages was with XXXX and the other with Chase. ) In the process, three disturbing issues arose out of fraud, negligence, or human error, which caused me avoidable expense, wasted time, and aggravation. I point out three issues below. 


**Issue I : Payoff Refused by Chase Under False Pretenses** Chase repeatedly claimed to have made a property tax payment on my behalf on XXXX XXXX which was not in fact made until XXXX XXXX according to XXXX XXXX ( XXXX XXXX ). Chase used this false claim as justification for Chase to refuse to accept a payoff payment from XXXX on XXXX XXXX in the amount and on the date that Chase itself had laid out in its payoff letter to XXXX dated XXXX XXXX, for my mortgage. 

Rather than Chase accepting the payment on the XXXX, Chase held my money for a week, demanded additional interest and fees from me, which were paid on the XXXX by XXXX and me, in full, but under duress just to stop the clock. Instead, Chase should have accepted the payment on the XXXX and dropped its false claim that the payoff payment was insufficient due to Chase 's XXXX XXXX tax payment, a claim that seems fictitious, wrong, or perhaps intramural and should have been reversed by Chase. 


**Issue II : Negligence in Informing Me and in Taking Timely Action to Address** As sketched above, XXXX wired payoff payment to Chase on XXXX XXXX. The first I learned of any issue with the disbursal was in response to my email to Chase on XXXX XXXX. Neither XXXX nor Chase notified me of the week long delay. The negligence I would argue goes against a duty of both parties to inform me -- which neither side did. 


**Issue III : XXXX Illegally Closed with a Higher Interest Rate than the Agreed, Locked Rate** XXXX salesperson XXXX XXXX confirmed that I locked the interest rate at 3.819 %. This was then documented in XXXX Loan Estimate dated XXXX XXXX, XXXX, showing the agreed rate and that it was locked. The Loan Estimate further reads that " your interest rate ... can change unless you lock the interest rate. '' The rest of the Loan Estimate had major mistakes that I pointed out in an email the same day. 

XXXX issued a new Loan Estimate dated XXXX XXXX, XXXX, correcting the portions stating that I needed " {$330000.00} cash to close '' and that I was paying off " {>= $1,000,000} '' rather than the the actual {$870000.00} that had in fact been discussed. 

I failed to notice at that time that the locked interest rate had been changed to a new rate of XXXX - and there was no notice to me and no discussion of a change. Unfortunately I did n't notice that change until after we closed. When I raised this with XXXX XXXX and with the Loan Processor XXXX XXXX, they both stated that it was in fact not a mistake but rather that the locked rate can change if internal estimates at XXXX change, which is why they purposely changed the locked interest rate. I told them that I doubted it was legal to change a locked interest rate, especially without proper notice, but they offered no adjustment.