Consumer complaint received 2025-11-09 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Fees or costs during the application process
Company: MILEND, INC.
State: PA

Complaint narrative:
We received a letter in the mail from MiLend telling us that we were pre-qualified for a new mortgage loan that could allow us to get an additional {$73000.00} in cash or more for a new monthly principal and interest payment of only {$1900.00} at 4.99 % XXXX % APR, XXXX  year fixed mortgage and that we would not have to make the first payment for XXXX months. 

We reached out and spoke with XXXX XXXX, a representative of MiLend. We asked a few questions, including what the approximate closing fees would be as we did not want to end up with a large amount of closing fees because financially it doesnt always make sense to refinance if the closing costs that are added into the mortgage balance are high. He told us that the closing fees are typically around {$10000.00}. It sounded like it was a good offer, so we agreed for XXXX credit report to be pulled and for us to start the process of refinancing with cash out. XXXX called and told me we were approved and the appraisal was ordered. We split the fee with MiLend for the same. On XX/XX/XXXX, XXXX texted me and said he was hoping to get our rate locked in asap because the rates dipped XXXX, but he couldnt lock our rate in until I paid our half of the fee, and the XXXX was assigned. He also said that the dip in rates would equate to about {$2000.00} in extra cash if we kept the same rate. 

On XX/XX/XXXX, XXXX texted me and said the appraisal came back at {$450000.00} and so it looks like we could pay off the XXXX auto loan and get $ XXXX {$25000.00} cash in hand. He said he was going to try to get some more fees waived for us to maximize the cash in hand to us. I asked if we had to pay the auto loan off and he said it looks like we do but he did send the file to his XXXX to see if there was any wiggle room and to make sure, he is not missing anything regarding a way to avoid paying off the auto loan. He said he would keep me posted. We did not hear back from him. At the beginning of XXXX, we receive a Closing Loan Estimate sheet and suddenly there are close to {$30000.00} in closing fees and we are only getting around {$12000.00} and the car loan paid off. At this point we call XXXX to find out what is going on. XXXX tells us that he made a mistake and when he was doing the calculations he left out a debt and so we really werent approved for the loan. However, after telling his XXXX, he said that they must keep up their side of the deal since it was not our fault that XXXX had miscalculated the numbers. However, he said that we had to pay {$11000.00} to pay down points to get the loan. I asked him if there was any way that we didnt have to pay the {$11000.00} and he said no, we must pay it because of the mistake that he made. I then asked if we had to pay off the auto loan because we were not getting the amount of money we planned on to upgrade the house and he said yes, you can not refinance if you do not pay off the auto loan in full. My husband and I discussed this and laid out numbers and decided that even though this is not at all what we were expecting based on what we were told, the auto loan would be paid off, and we would have a small amount of funds to work with, etc. Also, XXXX credit report had been pulled and that was another factor in our decision to move continue forward with this since it was over 30 days and to start over with another company meant a new hard credit inquiry. 

The day before closing I asked for all the closing documents in advance to review them in detail. I went back and forth with XXXX regarding questions pertaining to small details and the mortgage balance and XXXX assured me that the documents we would be signing tomorrow would be correct and the balances would be up to date, etc. We closed on XX/XX/year> ( which was pushed from the end of XXXX ). We signed all the documents, and we were told that everything would be paid off after the three-day recission period. So, on XX/XX/year>, we were told the check would be mailed to us to send to the auto loan company. We received it on XX/XX/year>. When my husband went into the auto loan app, he saw that the loan balance and the check balance are not matching and that the check we received was approx. {$1700.00} less than the payoff amount. We immediately reached out to XXXX and told him that we had a problem. He then reached out and told us that this was the title companys error, and they would call us. After a few days of not hearing from the title company, I reached out to the title company and was informed that they are only responsible for the mortgage payoff and that they were given the amount from MiLend for the auto loan. They sent an email to the management of MiLend to help us rectify this issue. XXXX response was that basically since we received funds from the refinance if the mistake was caught before closing, we would have just received less money. I told him we wanted to know how this error was made as the amount of the check matches nothing that the auto loan company listed in their payoff letter. He said they were looking into it and would get back to us, but they never did.

I sent a Notice of Error Letter to MiLend demanding an explanation as to how this could have happened and where this number came from that the check was written for. They responded with a simple it was a clerical error and that we had signed paperwork pertaining to any clerical errors that they may have made and enclosed copies of our signed documents.

We do not believe that they should be allowed to get away with stating they made a clerical error. My husband and I decided to proceed with the refinance even though we did not achieve the results we expected, expectations that were set by MiLend and added additional money to our mortgage balance based on what we were told we would be receiving in cash. If we had been told that we would be getting even less money, I am not sure that we would have proceeded with the refinance at that point since so many things had changed during this process. This mistake was a crucial mistake because we made a permanent decision that was based on incorrect numbers. That to us is not a clerical error. Also, I am not sure that we legally had to pay {$11000.00} to buy down the rates because they of their mistake.

As a side note, when we first reached out to MiLend, we asked if they generally sell the mortgages or keep them and we were told they keep them. The paperwork we signed at closing said the loan would remain with MiLend but shortly after these issues, we received Notice before we even made our first mortgage payment that they had sold our mortgage to another company.

We feel like we were told so many things that ended up not being true by this company and although we agreed to finalize the refinance, we really did not feel good about it. When we received the auto loan payoff and it was wrong, we really felt like we were taken advantage of by this company. We had no recourse by that time because we didnt receive the auto loan payoff check until well after the three-day recission period.

Now it looks like we made several decisions that were based off incorrect information received from MiLend which caused us to add money to our mortgage balance and barely get cash in hand to update the house which was the whole purpose of us looking into refinancing in the first place. We werent looking to pay off debt, we were looking to finish remodeling our home. On top of that, {$11000.00} was added to our mortgage because MiLend made a mistake and so we ended up adding more money to our mortgage balance than we received to remodel the home. Plus, the auto loan wasnt paid in full so we had to deal with that outstanding balance too. Additionally, we are not sure if our interest rate was locked in once the XXXX was assigned as they told us it would be.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation