Consumer complaint received 2020-06-24
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: KENT MORTGAGE CORPORATION (CA)

XXXX XXXX, CFO of XXXX XXXX XXXX utilizes unethical acts of lending practices to intimidate and take advantage of the consumer. I worked with his daughter XXXX XXXX in XX/XX/XXXX to secure my home loan and she was aware I was interested in refinancing soon. I have an email from XXXX on XX/XX/XXXX when I inquired about if there were any prepayment penalties and he responded " no pre pays ever '' so I proceeded forward with using their company. 

I was never informed either verbally or by written disclosure I would not be allowed to refinance within 6 months, otherwise I would have reconsidered accepting this loan or moving forward with this company. Multiple attempts were made to XXXX requesting for assistance with refinancing, which she agreed to assist with but failed to do so. As a result I was forced to seek an alternate mortgage corporation for refinance assistance. When XXXX XXXX received notice from my new lender for the refinance payoff, XXXX began what I truly feel personally as threatening me on multiple occasions by phone and email if I did not agree to their terms and used intimidation as his tactic due to my lack of knowledge as a first time home buyer that I would be liable for the prepayment penalties. 

XXXX tried coercing me to either extend my refinance loan closing date or refinance through his lending company if I did not want to deal with the repercussions. The Truth in Lending Act requires a disclosure form to borrowers that includes a box the lender much check if a prepayment penalty is charged. I did not have this prepayment penalty on my disclosure but he abused this power saying that I would be charged unless I complied. He then retracted this statement after I did my research to confirm I did not have prepayment penalties and relayed my research to him. XXXX then confirmed I was not obligated for prepayment penalties but yet changed his tactic by now threatening that he would file a lawsuit for business loss damages because I was causing intentional harm and that he had already retained counsel. He threatened to hold me accountable for {$14000.00} XXXX XXXX  had to pay my lender XXXX XXXX XXXX. I had every intention of working with him to delay the closing and see other alternatives to help him but his threats and mannerisms in achieving that were so intimidating, unethical and unprofessional to the point that I do not feel safe nor comfortable having him handle my refinance. He utilizes intimidation to obtain his desired result and he had multiple occasions to notify me not to refinance within 6 months but didn't and then tries to intimidate by saying he had a witness ( the notary to his conversation ). I also have my own witness at that conversation and if he had disclosed that, I would not have proceeded forward in XXXX, especially after I had confirmation with him by email on XX/XX/XXXX that I did not nor did his daughter notify me during our email exchange in XX/XX/XXXX. 

According to my closing disclosure, I am under no obligation to pay any monetary prepayment penalties. I fail to understand how XXXX believes it is ethical to harass me to accept his terms with threats and hold me responsible for XXXX XXXX early payoff penalty fees, business loss damages, or any other reason. His attorney sent me an email on XX/XX/XXXX that the letter represented claims to be pursued against me in the event I do not cooperate to avoid damages to XXXX XXXX. and that if we reach a resolution which avoids damages to XXXX XXXX XXXX, there will be no cause to litigate. The basis of their claims are : 1 ) Tortious Interference with Contract - " You were made aware of these duties at the time you obtained the loan, and you have been made aware of the specific damages which your conduct will cause XXXX XXXX.

2 ) Implied In Fact Contract - Most contracts do not have to be in writing. XXXX XXXX  will seek recovery of the earned fee paid by XXXX XXXX  from you directly. You, by your anticipated conduct, are knowingly waiving the payment by a third party. 
3 ) Quantum Meruit - Even if you had not acknowledged the cost of the services by XXXX XXXX XXXX, the legal doctrine of quantum merit allows for recovery of a reasonable sum of money for services rendered or work done when the amount due is not stipulated in a legally enforceable contract. You are now causing the third party payment to be revoked. XXXX XXXX XXXX will therefore seek direct payment. 
4 ) Unjust Enrichment - You acknowledged that you received a lender credit of {$6100.00} from XXXX XXXX XXXX, the lender. That credit was directly for you and did not provide a benefit or payment to XXXX XXXX. Under the doctrine, a person who has been unjustly enriched at the expense of another is required to make restitution to the other. 


I have the following supporting documentation : 1 ) Email from XXXX XXXX confirming there were " no prepays ever '' when I inquired. He never mentions that I should not refinance within 6 months. 
2 ) Email trail I initiated from XX/XX/XXXX to XXXX requesting refinancing options. This email trail indicates I had every intention to refinance with them. She promised to notify me when the interest rates dropped, yet failed to do so. At that time she had the opportunity to disclose there was an early payoff penalty but chose not to and also does not mention I should not refinance within the 6 months. 
3 ) Late email at XXXX XXXX  from XXXX on XX/XX/XXXX threatening to file a lawsuit to pursue all legal remedies to the fullest extent of law and giving a deadline by XXXX  the following day, giving an unfair turnaround of just over 12 hrs. 
4 ) Voicemail transcript on XX/XX/XXXX still threatening a lawsuit even after my response to his email from XX/XX/XXXX to not threaten me going forward and I responded I would be open to a discussion if it was handled in a professional manner. His voicemail untruthfully claimed he had verbal witnesses to testify he disclosed to me but yet he did confirm on XX/XX/XXXX my loan did not have a penalty. He contradicted himself on the grounds for the lawsuit with this statement and yet still threatened a lawsuit if I did not agree. 
5 ) Email letter from his attorney on XX/XX/XXXX that they will proceed forward on this claim if I proceed forward with the closing. 


Note : I have witnesses to the intimidating and threatening phone conversations with XXXX raising his voice to intimidate me that are not included as written support but the summary of the conversation transcript is the same as mentioned above. His last phone conversation stated that it will cost him more than 100k to file but that his counsel has already said he had a good case and that he promised this would cost me more than 14k and that he will be able to recover his attorney fees in addition to the XXXX  I've already contacted XXXX XXXX  and they confirmed that I am under no obligation to refinance with them for any reason and I have the right to refinance in the 6 month period without any penalties.