Consumer complaint received 2025-07-16 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: AMERISAVE MORTGAGE CORPORATION
State: CO

Complaint narrative:
I originally applied for a home equity line of credit ( HELOC ) through Amerisave Mortgage in late 2024. I clearly communicated to the loan officer, XXXX XXXX, that I was seeking a revolving line of credit to pay off credit card debt, potentially lease a vehicle in the future, and maintain financial flexibility in case of emergency repairs on my home. My credit was fair, and the loan-to-value ( LTV ) on my home was strong. i was assured that a HELOC would suit my needs and was told no appraisal would be needed due to recent data already on file. Later, however, an appraisal was unexpectedly scheduled. I was informed by a different loan processor that the appraisal had become necessary, and the appraiser ultimately required several costly repairs before approval could move forward. I opted to discontinue the application and expressed my frustration that the process deviated significantly from what was initially promised. I specifically noted my concern that the credit inquiry had negatively impacted my credit score, making it difficult to pursue financing elsewhere. Shortly after, XXXX contacted me stating that due to " technical issues, '' I needed to log into the portal and re-sign new documents. He assured me the original HELOC product would be re-run using the prior credit pull, and that the appraisal requirement was being waived. Excited that the original terms had seemingly been restored, I followed instructions and signed what I believed to be updated paperwork for the same HELOC product. However, what I unknowingly signed was not a HELOC but a HELOANa fixed second mortgage. This was never clearly disclosed to me. The loan name similarity ( HELOC vs. HELOAN ), along with a confusing portal experience that showed both products in different tabs, led me to believe I was continuing with the original product. No one at Amerisave verbally informed me that the product type had changed, and no effort was made to explain the key differences between the two products. I was never made aware that this was now a closed-end loan with a high monthly payment and no access to revolving fundsthe exact opposite of what I applied for.

Even more concerning, I later discovered that Amerisave used the proceeds from this loan to pay off a HUD down payment assistance loan that I was never informed existed. I was not advised that this payoff would occur, and I never agreed to it. As a result, I received far less funding than expected, and I am now locked into a monthly payment of over {$600.00} without the ability to draw funds or restructure the balancedefeating the entire purpose of seeking a HELOC in the first place. When I raised these concerns with XXXX XXXX, XXXX XXXX, he acknowledged the calls and emails but stated there was no compliance issue because the loan was technically a fixed-rate product. I strongly disagree. I was led to believe I was signing paperwork for the same HELOC product I initially applied for. There was no transparency or opportunity to make an informed decision. I am now struggling to meet this unexpected loan obligation. I have not made a payment because doing so would signal agreement with a product I never knowingly accepted. I am seeking immediate intervention and resolution before this situation causes irreparable harm to my financial health and housing stability.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation