Consumer complaint received 2025-01-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: SC Opportunity Fund LLC
State: NC

Complaint narrative:
In the experiences I outlined in this complaint, my mortgage lender The Loan Store attempted XXXX different last-minute bait-and-switches to reduce the lender credit below the amount that appeared in the initial Loan Estimate. I would like the CFPB to investigate these shady practices. 

On XX/XX/XXXX, I received an email from my mortgage broker XXXX XXXX with email address XXXX. The email had the subject " XXXX XXXX XXXX : Initial Closing Disclosure ( CD ) has been sent by The Loan Store! '' and had a link to view a Closing Disclosure and Notice of Changed Circumstance sent by The Loan Store. The interest rate, loan costs, and lender credit in this Closing Disclosure matched my initial Loan Estimate so there was no issue with this Closing Disclosure. I attached a copy of the email from XXXX XXXX, the Closing Disclosure, and the Notice of Changed Circumstance. I have also attached the initial Loan Estimate that I received from my mortgage broker XXXX XXXX at XXXX XXXX on XX/XX/XXXX. I have also attached the initial Loan Estimate that I downloaded from The Loan Stores portal at XXXX XXXX XXXX XXXX XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. This Loan Estimate has a watermark saying In Process. 

On XX/XX/XXXX, I received an email from XXXX XXXX, an employee of The Loan Store with email address XXXX. This email had the subject " XXXX XXXX XXXX : Initial Closing Disclosure ( CD ) has been sent '' and had a link to view a Closing Disclosure and Notice of Changed Circumstance sent by The Loan Store. The interest rate and loan costs in this Closing Disclosure matched the initial Loan Estimate and the previous Closing Disclosure from XX/XX/XXXX, but the lender credit was reduced from {$4000.00} to {$3900.00}. The Notice of Changed Circumstances had " Lock Expiration, Lender Credits, Lock Expiration, Lender Credits, Lender Credits, '' in the comments. I attached a copy of the email from XXXX XXXX, the Closing Disclosure, and the Notice of Changed Circumstance. 

The rate lock expired solely due to delays caused by the lender 's underwriting in approving hazard insurance for the property ( this is covered in a completely separate CFPB complaint with complaint ID XXXX ). Because this rate lock expiration was the fault of the lender, my broker requested the lender to update the lender credit back to {$4000.00}. They confirmed this in an email sent to me on XX/XX/XXXX from XXXX XXXX at XXXX XXXX with email address XXXX. I attached a copy of this email. 

My closing was scheduled at the closing attorneys office for XXXXXXXX XXXX XXXX  on XX/XX/XXXX. By XXXXXXXX XXXX XXXX, the lender had not updated the lender credit back to {$4000.00} so I emailed my broker at XXXX XXXX again. On XXXX XXXX XXXX I received a reply from XXXX XXXX at XXXX XXXX ( XXXX ) saying XXXX, The lender will honor the same pricing. They are working to update it and XXXX will let you know that has been completed. I can assure you they aren't trying to bait & switch, they agreed to cover the extension when we originally requested it and will follow through to update it. I attached a copy of this email. By the time my closing appointment began at XXXX XXXX XXXX, the lender had not updated the lender credit, so the closing attorney had me start signing all the loan documents other than the closing disclosure and final settlement statement. 

At XXXXXXXX XXXX XXXX  on XX/XX/XXXX, I received an email from XXXX XXXX ( XXXX ) with the subject XXXX XXXX XXXX : Initial Closing Disclosure ( CD ) has been sent. This email had a link to view a Closing Disclosure and Notice of Changed Circumstance sent by The Loan Store. The interest rate and loan costs in this Closing Disclosure matched the initial Loan Estimate and previous Closing Disclosures, but it had a lower lender credit of {$3800.00} instead of the lender credit of {$4000.00} that my broker requested to match the initial Loan Estimate. The Notice of Changed Circumstance had the line checked for Revisions Requested by the Consumer. You requested changes to the mortgage loan sought that change the loan costs or the loan terms and had Lender Credits, in the comments section. I attached a copy of this email from XXXX XXXX, the Closing Disclosure, and the Notice of Changed Circumstance. 

I did not request them to reduce the lender credit, so I am not sure why they sent me a Closing Disclosure with a reduced lender credit and a Notice of Changed Circumstance saying I requested the reduced lender credit. I believe this lender was attempting some type of last minute bait-and-switch to collect an extra {$88.00} as I never requested a reduced lender credit. The attached emails from XXXX XXXX and XXXX XXXX at XXXX XXXX clearly show that they requested the lender to increase the lender credit back to the amount on initial Loan Estimate, not to reduce the lender credit. 

A few minutes after I received this email, I sent an email to XXXX XXXX and called XXXX XXXX at XXXX XXXX. I received a reply from XXXX XXXX at XXXXXXXX XXXX XXXX saying We are waiting on the lender to respond. Title should get an updated one shortly correcting this. I attached a copy of this email. 

Because XXXX XXXX said the lender should update the Closing Disclosure shortly, I waited at the closing attorneys office until around XXXXXXXX XXXX XXXX  The lender had not updated the lender credit by that point and the closing attorney was closing soon, so I left the office and did not sign the Closing Disclosure and XXXX XXXX XXXX. 

At XXXX XXXX XXXX on XX/XX/XXXX, I received another email from XXXX XXXX ( XXXX ) with the subject XXXX XXXX XXXX : Initial Closing Disclosure ( CD ) has been sent. This email had a link to view a Closing Disclosure and Notice of Changed Circumstance sent by The Loan Store. The interest rate and loan costs in this Closing Disclosure matched the initial Loan Estimate and previous Closing Disclosures, and the lender credit was finally updated to match the lender credit of {$4000.00} on the initial Loan Estimate and Closing Disclosure from XX/XX/XXXX. I attached a copy of this email from XXXX XXXX, the Closing Disclosure, and the Notice of Changed Circumstance. 

On XX/XX/XXXX, I signed the updated Closing Disclosure and was able to close on the home with the same lender credit as the initial Loan Estimate. However, this was only because of my persistence in dealing with this lender, many emails and phone calls about this issue, and my willingness and the sellers willingness to accept a delay in closing to get the lender credit corrected. If I was not so persistent in getting this issue resolved, if the seller is not willing to extend the closing date, if there are other competing offers for the seller, or if there any of the number of reasons that I really had to close on XX/XX/XXXX, the lender would have gotten away with a last-minute bait-and-switch in the lender credit, and received more money at my expense. 

In just the experiences I outlined in this complaint, The Loan Store attempted XXXX different times to reduce the lender credit below the amount that appeared in the initial Loan Estimate and initial Closing Disclosure issued on XX/XX/XXXX. XXXX, they reduced the lender credit from {$4000.00} to {$3900.00} due to rate lock expiration, which only occurred due to their own completely unreasonable delay in approving hazard insurance ( as described in CFPB complaint XXXX, to which they deceivingly responded that the complaint does not belong to them ). Second, they further reduced the lender credit from {$3900.00} to {$3800.00} and claimed I requested the reduced lender credit when I and my broker had actually requested the lender credit be increased back to {$4000.00}. If a buyer is not as persistent as I was or if they did not have the flexibility to extend the closing date, the lender would have gotten away with it, which makes me wonder how many other buyers they have taken advantage of using similar last-minute changes to lender credits.

Company response to consumer: Closed with explanation