Consumer complaint received 2021-09-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION
State: TX

Complaint narrative:
Hello Sir or Madam, I got scammed by this company Amerisave when I tried to refinance my primary home and cash out my equity. On XX/XX/2021, I have applied it from its website and the loan originator XXXX XXXX has called me to go over my application. After first initial review, he said it looked great and I got approved. Then he asked me to pay for the {$500.00} application fee. I was surprised that I have never heard that we have to pay that fee upfront when you apply for a mortgage loan. I thought it was fine because I will close the loan with them anyway. Either pay now or pay at closing. So I have agreed to pay that fee at the beginning. I have received my first disclosure and it looks fine. After the first week, I have received another disclosure with extra discount points from 0.112 % to 0.584 %. I was thinking what the heck, it seems like a bait and switch tactic that lures the consumers with impressive terms and mortgage rates. Once the consumer signs on those terms are then flipped or they're told they no longer qualify for the lower rate. This leaves consumer stuck with fees and more fees, high rates or unattractive loan terms. And this actually happened to me. I was to trying to contact LO XXXX XXXX by phone and by email, but no response at all. I thought he might be busy with other clients. So I have waited for two weeks later. I was finally able to talk to him. I have asked him what status of the loan and he said its good. Then, I asked him when we can close it. He said let him work on it. Two days after the called with him, I have received a denial letter with reason Value or Type of collateral not sufficient. I was shocked and stressed out. I have great credit history with score over 720. My current mortgage balance is {$270000.00}. And my new appraisal is {$480000.00} and they charge {$700.00} for appraisal fee from XXXX XXXX. Its ridiculous expensive. Im still thinking what the heck was going on with my refi, but now I realize that Amerisave is absolute scam. This is how they conduct their business and generate their revenue by this Application fee. They can make XXXX XXXX dollars just by intentionally doing this scam. Additional, they have 14 regulatory actions against this company on NMLS. Many consumers have been a victim by this scam business. I wish I have seen this before I applied my loan with them. Amerisave also required me to pay {$500.00} for the application before providing me the disclosure. I think this act was violated the TILA and RESPA. I hope CFPB or any other government agencies to stop this business model scam. This would seriously harm many many more consumers and economy. This is completely unacceptable. I look forward to bring a lawsuit against this business scam in court. I appreciate all your help. Thank you so much!!!

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with monetary relief