Consumer complaint received 2018-04-22 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: NC

Complaint narrative:
First and foremost, I understand interests rates change daily and increasing all the time, estimates are only estimates, and nothing is finalized until I am under contract with my rate locked in. 

On XX/XX/XXXX, I applied for a mortgage through a lender. After I did so, I began receiving non-stop phone calls from multiple lenders that were notified that I applied. However, I did receive a phone call from my current loan holder PennyMac, leaving me a voice mail with a " competitive offer ''. 

On XXXX XXXX, I contacted PennyMac and they stated I would receive a 3.99 % loan if I pay $ XXXX {$120.00} in points. I asked for a loan estimate, and they sent me a closing worksheet. Here is where they start misleading. The initial Closing cost worksheet left off the " prepaid interest, taxes, and insurance '' as well as the " estimated escrow reserves ''. The estimated it would be {$2700.00}. Once I sent this off to a friend to get guidance, I re-contacted my Loan Officer that same day to update the information. He updated the prepaids, but only put in 1 month of escrow knowing that it has to be a full year. Now my closing cost is {$3600.00}. 

On XXXX XXXX, I went under contract with the house, and sent the contract to my loan officer. I also told him that the seller is only giving {$5000.00} towards closing, not the original {$6000.00}. I again asked for an official loan estimate, none given. 

On XXXX XXXX, I asked again for a loan estimate, none given. 

On XXXX XXXX, I asked for a loan estimate, none given. 

On XXXX XXXX, five calendar days, and the fourth business day, I finally received my loan estimate at XXXX XXXX on the last day I had to submit to the seller before I defaulted, I received the loan estimate. This estimate had an interest rate of 4.125 % with {$460.00} in points ( .028 % ). Again, he only included 1 month of escrow and prepaids ( which will substantially increase my closing costs ). He did not change the sellers paid closing costs to {$5000.00}, which will also increase my closing costs. I also asked for a 90-day rate lock, which was not included. Once I contacted him with my concerns, he sent me a picture of the current interest rates at 4.125 %. I am now at {$3700.00} in closing + the year of escrow + the extra {$1000.00} in closing costs = about {$7000.00}. 

On XXXX XXXX, I contacted PennyMac stating I am thinking about a buying a house, and inquiring about a new mortgage. I gave them the same terms, and they stated the interest rate would be 3.99 %. 

1 ) PennyMac is intentionally giving false mortgage rates, and not disclosing points. 

2 ) PennyMac is misleading the closing cost worksheet by leaving off items. 

3 ) PennyMac violated federal law by not sending me my Loan Estimate within 3 business days. 

4 ) PennyMac waited for the last possible moment to send my Loan Estimate, which could have caused me to default on the contract and lose the house. 

My loan officer was XXXX XXXX ( XXXX # XXXX )

Company response to consumer: Closed with explanation