Consumer complaint received 2022-04-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: SUN WEST MORTGAGE COMPANY, INC.
State: TX

Complaint narrative:
I hope this email finds you well. I'm writing to you concerning my dealings with Sun West Mortgage Company. Our entire closing process and the events leading up to it were grossly mishandled and perhaps illegal. With information at times seeming to be deliberately misleading throughout the process. 

We started our process with S.W.M.C.  XX/XX/XXXX, with it ending in no deal XX/XX/XXXX. The number one issue, they dont date their rate lock, so you are flying blind as to the terms that you are agreeing to. Even all their documentation will reflect the same rate right up until the end. To complicate matters further as, we were asked to improve our property as we were getting a cash out refinance, which cost us $ XXXX in repairs and {$900.00} in appraisals.Given the length of the process, we had a changed financial situation, that had they known their own policies would have shown we were no longer eligible but were still dragged along through the process for months. Please see the following information and pasted communication for a details. 

XX/XX/XXXX, after shopping for a rate settled on 2 competing financial institutions-SWMC and XXXX XXXX XXXX. In trying to appeal to us that SWMCs mortgage was a superior product and company A, their mortgage consultant, asked me to ask XXXX XXXX XXXX the following via email on XXXX Do you know if they quoted you on a 30-day rate lock or 45-day rate lock? I ask because appraisals ( like we discussed ) are taking a little longer. Therefore, I wouldn't want them to charge extension fees since it'll most likely go over 30 days. I would just confirm : ). 

This was also mentioned in a email from A  dated XX/XX/XXXX We don't have any lender fees unless you choose a rate with a discount point. We have no origination fee, no application, rate lock, credit pull, etc. fees. We also service your loan, so things stay in house. The only other fees would be the appraisal, title work, and establishing your new escrow account. 

Later I found that SWMC also charge extension fees, whilst the implication from As emails imply that is what separates SWMC from competitors. I secured and locked on XXXX 2.875 % over 30yrs, with a $ XXXX cash out for renovating our home. 

Our home was appraised, I then received the following email from XXXX   XXXX Unfortunately, since those are major renovations, the appraiser can't properly place a value on the property since the renovations can at any time be stopped. They aren't allowed to take the cash-out refinance into the equation when assessing value. If it were smaller projects, like a coat of paint or changing something minor out, the appraisers can sometimes use discretion. However, since major elements to a " functioning '' home are missing/still being worked on in regards to the appraisal standards, there will have to be a follow up check in from XXXXhe appraiser once they are completed.

There are two options : 1 ) We can continue the lock & once repairs listed by the appraiser are complete, we can close. There will be lock extension fees associated.

2 ) Or we can cancel the lock for now, while you finish repairs listed, and then we re-lock & process the refinance.

I elected to hold the lock and secured a contractor. Then A left
the company and our file was passed onto XXXX. This was my email XX/XX/XXXX to XXXX- Hi XXXX, I saw that you've taken over our cash out refinance. Welcome! Given we have a few things we have to fix until the appraiser can make a final calculation. I was wondering how much the extension fees are if there are any? I believe our lock in date expired the XXXX. We are getting the cash out refi to finish our renovations, so that means we are in the midst of renovating. I'm hoping to get the work the appraiser recommended completed within 2/3 weeks.

Will the extension be pending upon the return of the appraiser and do we know how long that could be?

If you need to jump on a call this week to be caught up, I'm free. Feel free to review the email from XXXX below also. 

We signed more documents but still hadnt heard from XXXX, so I sent him this email dated XX/XX/XXXX Hi Everyone, I was just sent this updated disclosure requiring another fee. Could someone tell me what it's for a what the parameters are of the fee in terms of what it includes ie. how long it extends our rate etc? 
Many Thanks, XXXX   On the XX/XX/XXXX for some strange reason XXXX replied to my question to my husbands email the following XXXX : Your lock is due to expire on XX/XX/XXXX. Can you please give me a status on the following repairs? 
Completion of the master bathroom, installation of the crawl space skirting and interior paint as needed. 
Based on the time you are expecting it would take for repairs to be completed, we would need to decide whether we should let the lock expire or extend it. Extension cost is {$70.00} per day. Please let me know. 

My reply the same day- We were just sent this updated disclosure requiring another fee of some {$1200.00}. Could someone tell me what the fee is for? 
I saw that XXXX  mentioned to J that the extension would cost approximately $ XXXX day. We are waiting to lock in our contractors so we have a better idea of how long it could take to reschedule the appraiser.

Could someone tell me how the rates have changed since the lock, and also if we have to go through the whole credit check thing again and what else is involved if we start the process later in the month all over again? 

Between XX/XX/XXXX and XX/XX/XXXX I went back and forth with XXXX assistant who informed me XXXX would have to explain what the fee was for, so I wait and then email him again. 

In the meantime my husband was made redundant on the XX/XX/XXXX. But I dont hear from XXXX for 10 days, so on XX/XX/XXXX I reach out- Hi XXXX, I was wondering if we could jump on a call today? We should have our work completed by the end of the month at the latest. Given that the rates are going up we would like to continue with the lock, but I would like to discuss with you what the {$1200.00} fee was for, we haven't signed that yet. 

No response, I contact his assistant XXXX, that Im concerned about the lack of communication so another assistant-XXXX  reaches out to me via phone and then sends this email the same day stating- As discussed I will have your lock extended to the end of the month ( Friday, XX/XX/XXXX ) for closing. There will be an extension cost but we will waive the relock costs. 
The revised XXXX  will be sent to you once this update is processed. 

Then XXXX asks me about my husbands work status, I email stating the XX/XX/XXXX Apologies for not informing you guys of our most recent situation, I wasnt totally aware I had to inform you immediately as XXXX  got a payout for a few weeks and weve had a lot going on trying to get the house completed for the evaluation. So XXXX was paid out from ( company name ) until the end of XXXX I believe, and he is on his XXXX interview for his a new role. I will keep you all apprised of the situation. If you have any suggestions as to how this can be navigated, Im all ears. 

On XX/XX/XXXX XXXX  gets back to me via email- Thank you for the updates. Please be aware that the lock on your loan will expire on XX/XX/XXXX. Once we get closer to that time period, we will need to decide on what you want to do with the lock. All of that will depend upon where we stand with the repairs and the new job. When there is a change in job, the underwriter usually requires 1 month of paystub and the new job offer letter. 
Before the lock expiration, we will need to make one of the following decisions : 1. Extend at a cost of {$70.00} per day, or 2. Relock at a future date, depending upon where the rates are at the time. 

I reply via email XX/XX/XXXX Thanksfor the update. Just so I know, if XXXX 's offer is delayed, is it possible to get someone to go guarantor to secure the loan? 

XXXX  via email XX/XX/XXXX 'You could add someone as a cosigner. Do you have someone in mind who could help with the qualification? We will need to take an application, run credit, and request and verify the income/ assets for that individual. 

I suggest my father in law. Then XXXX via email XX/XX/XXXX Thank you for your time over the phone. As soon as I hear back from XXXX  ( XXXX ), I will take his information and request him to provide necessary documents to get the loan moving forward. 

I email XXXX XX/XX/XXXX I understand that you're approaching your underwriter 's to see about approving my Father-In-Law as our guarantor. 
The improvements to the house that the appraiser XXXX recommended will be completed and ready for inspection by this weeks end. 
Also, could you please keep us apprised of any additional fees and the total associated with the extension? 
Please advise of anything we can do on our end to expedite this process. 

No response, so I email him again XX/XX/XXXX I just wanted to double check that you have all the information from XXXX  before he goes on his trip, tomorrow? Just in case the underwriter agrees to a guarantor. 
If you could call me today that would be great, I have a meeting at XXXX XXXX  until XXXX, but other than that I'm free. 

On XXXX reach out to XXXX assistants to ask if he has seen my email and that Im concerned as its time sensitive. They offer to review the file and come back with items my father in law needs to provide in order to proceed. Between XX/XX/XXXX and XX/XX/XXXX Im trying to understand if my father in law would be a guarantor or a co-signer so we know if he would have to be on the title or not. 

I then send assistant XXXX the following email on XXXX I hope you're well! I was wondering if you could give me some advice? Since XXXX has taken over our account the communication has been terrible. Do you know if we can request someone else take over the handling of ourmortgage? 

I receive a phone call from assistant XXXX  apologizing for the neglect of my account and that I dont need to worry about the rate, and that they can play around with the extension fees given how long the file is taking to be completed. 

I had questions about the details surrounding my father in law being a co-signer and not a guarantor and not an occupant. It took until the XX/XX/XXXX to have any of these questions answered, meanwhile Im concerned that we are paying each day an extension fee. The disclosures we are given do not detail any of the lock details and the rate of 2.875 % is all over our closing disclosures. 

In the meantime theyre going over my father in law-XXXX  's financials to ensure he is credit worthy. They then ask if my husband has a job yet, which he doesnt, but that was the whole reason to put my father in law on the loan in the first place. 

XX/XX/XXXX they tell me they received the appraisal back. The appraiser doesnt inspect pier and beam, I have to organize another inspection, this time for the foundation. The same day we are required to pay a further {$200.00} to ensure the appraisal is up to date. 

XX/XX/XXXX my husband provides them with an employment offer letter. XX/XX/XXXX I send the foundation inspection letter, stating our foundation is sound. 

XX/XX/XXXX I ask if XXXX is still required to be on the loan, given my husband has secured work? 

On XX/XX/XXXX I ask again. 

XX/XX/XXXX I receive a reply that my father in law is required to remain on the loan given we have charged all our renovations to our credit cards, his credit needs to counter our new credit rating. 

XX/XX/XXXX I resend XXXX offer letter. 

The offer letter is sent with specific requests answered for and resent over. XXXX  senior recruiter in the HR department emails XXXX  an email on XX/XX/XXXX XXXX is honestly awful! Im so sorry youre dealing with this. I actually responded to two separate emails from them yesterday, and in both shared the information you mentioned below. ' Hoping to speed up the process I email the team on XX/XX/XXXX I've uploaded both XXXX   's XXXX statement and his first weeks paystub, I'm looking to get an employmentverification letter instead of an offer letter as XXXX  has already accepted the job and is now actively employed. 
Let me know if there is anything else need to get this finalized, if it goes into XXXX it will be 6-mths, which feels like a really long time for a loan. Please, if there's anything I can actively be doing, let me know. 

On XX/XX/XXXX XXXX from XXXX emails me- Hello XXXX : Can you please give me a call so we can lock your rate and prepare the paperwork for closing? 

XXXX calls me at work and for the first time notifies me that we do not have a locked in rate. I tell him this is news to me given all the paper work always indicated the original rate offer. 

All contracts and disclosures have stated the same rate over and over again. We sent the document to an experienced mortgage broker who informed us the documents were illegal, given they do not record the expiry date of the lock. 

When I speak to XXXX again, he informs me he can try and offer me something else, but along the same lines. He sends me documents to sign that change the terms to 15 years instead of the promised 30. He says he will try something else. 

On XX/XX/XXXX I receive an email from the team I just received confirmation from our underwriting team that your loan is now ready to schedule closing. 

On XX/XX/XXXX I reply to the whole team via email Hi Everyone, I don't want the current deal that XXXX tried to renegotiate-no cash out refi, 15 yr home loan and an outrageous rate an 8 % HELOC. 
I've looked up past correspondence, XXXX  is incorrect that my rate expired in XX/XX/XXXX. I would NEVER have continued with a loan without a lock. Please see the correspondencebelow and attached. Here I've asked questions regarding the rate and was aligned with the understanding expressed by Sun West, all following documentation that was given me right up until recently reflected this understanding of a 30yr cash out refi on 2.75 %. This is the deal I want without any cost to me, as that was what was originally agreed to. I have gone to an enormous effort to comply with every step and have gone into debt to renovate our home and to qualify for this loan. ' The same day they replied-They will review correspondence. 

XX/XX/XXXX I receive an email from the team asking if I can provide the land survey I have already provided. 

XX/XX/XXXX XXXX email team Hi everyone, The most recent document STILL has us down for 15 years, as I've expressed, I want the30 year. I don't want to pay close to $ XXXX After receiving more docs I email them again : Can you guys send me the proposed loan before I sign anything to do with Sun West ? I just got a Cash out refinance caution. 

I receive more revised docs XX/XX/XXXX and reply Hey Everyone, An extra XXXX in fees isn't going to work for us. The fact that you guys are still coming back to me after all this time ( yesterday! ) for a land survey shows the lack of attention paid to our account, going over the same information over and over again. 
Yes, I had to add XXXX  to the account in XXXX but that took at the longest 30 days, aside from talking the underwriting team into accepting his docs and financial position. 
I've done this all before and have always been efficient in providing information. I understand XXXX XXXXs employment became a factor but with XXXX  as a co-signer I'm still unsure why it took so long. And when XXXX did have a job offer, the fact that the underwriting team dragged their feet in accepting XXXX XXXXs employment is not my problem, to that end, even his HR person said she had never had such trouble convincing a financial institution of someone's employment! 

I then send another email with the XXXX offer attached. 
Attached is the loan that was offered to us in XXXX which we all signed. 

On XX/XX/XXXX I email XXXX SWMC manager, XXXX, and send her the following email- Hi XXXX, I hope this emailfinds you well. I'm writing to you concerning my dealings with XXXX in processing our cash-out refinance. The entire file has been grossly mishandled and the deal disclosed, misrepresented. As such I have been advised that I should file a complaint with the Consumer Financial Protection Bureau and have supporting documentation to verify my complaint. 
Please find the attached correspondence. We had a highly experienced mortgage broker go over our " non-cooling '' off disclosure that was sent to us XXXX XXXX ( which we all signed ), he said that it is highly suspect that there is no notification on the document of whether or not the rate is locked. 
XXXX  then called me on the XXXX XXXX XXXX the 3rdtime in 6 months to explain our rate expired in XX/XX/XXXX, when I have email correspondence fromSWMCthat confirms that the rate was extended until the end of XX/XX/XXXX. During a conversation with XXXX 's assistant, he could see that my file was being ignored and that there would be some leeway on an extension. Then I received the XXXX XXXXdocs, which were the original deal and signed them. 
On the conversation on XXXX XXXX has tried to offer me a 15yr loan and an 8 % HELOC or the original loan that will cost me {$26000.00}. Most recently I have been offered a loan with the original rates for a cost of {$8000.00}. I want the deal that was sent to me on XX/XX/XXXX. 
Please let me know whereSWMCstands on the matter, then I shall know how to proceed. I leave for XXXX this week and would like it wrapped up. 
Best, XXXX XXXX  replies same day XX/XX/XXXX HiXXXX I currently show this loan is locked at a cost of {$19000.00} so let mehave this reviewed asapto provide you with an update. My apologies for the delay so far but I am trying to get this resolved asap. 

I reply same day-That is too expensive for us XXXX  replies same day- I understand and the pricing is associated with the cost to extend the lock and with the market pricing worsening over the lastcouple of months this was the result. Obviously, if your loan doesn't close you don't pay these fees but let me see if anything can be done to reduce the cost. 

XX/XX/XXXX I receive a call for the first time from an underwriter at SWMC called XXXX, I ask him to email me what he has just stated over the phone. 
Per our conversation, Texas does not allow for a non occupant co borroweron a cash out loan. I am sending this email at your request. 

After this correspondence we sell our car, as XXXX is given a company car and it will lower our debt/income ratio XX/XX/XXXX I am sent a new offer in form of a document to sign I reply to the document the same day Hi XXXX We will be refusing the latest offer fromSWMC, $ XXXX for closing is egregious! Especially given we were notified for the first time yesterday, that my father in law can't even be on the loan. Which was part of the hold up on my end in the first place. So we spent all this time going back and forth over a topic that wasn't even a viability. 
This has been one of the worst financial experiences of my life and feels as though the negligence is intentional so as to mislead a consumer and keep the financial options forSWMCfluid. 

XXXX   replies same day HXXXX XXXX, I just learned of this info as well and am still looking into why this informationwas not disclosed earlier. I know it is taking some time but pleasebelieveI am still workingon it. Also, there is nothing Sun West gains if your loan does not close but I need to research why information wasn't provided earlier. 

That was where the matter was left. I heard nothing further from them

Company response to consumer: Closed with explanation