Consumer complaint received 2025-04-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: GATEWAY FIRST BANK
State: OK

Complaint narrative:
My name is XXXX XXXX. I am writing to formally request a full internal review and resolution of a loan originated by Gateway Mortgage under file number XXXX, facilitated by XXXX XXXX XXXX This process has resulted in financial harm, miscommunication, and serious professional concerns. 

My wife and I have worked with Gateway on multiple mortgage transactions over the past 15 years. We trusted XXXX and Gateway again because of that historybut this time, our experience was fundamentally different. What should have been a solution to consolidate debt and relieve financial pressure instead created confusion, stress, and avoidable consequences. 

XXXX. XX/XX/year> : Initial Contact and Loan Misalignment On XX/XX/XXXX, I contacted XXXX to explore a cash-out refinance, based on over {$320000.00} in renovations recently completed on our home. The goal was to use the equity to pay off a line of credit and consolidate approximately {$43000.00} in credit card debt. 

Instead of reviewing or comparing options, XXXX quickly dismissed the refinance and pivoted toward a second mortgagewithout explaining long-term costs, risks, or alternatives. 

On XX/XX/XXXX, XXXX asked if the loan should be in my name, my wifes, or both. I replied that both was likely, unless it made more sense to apply in just my wifes name due to credit differences. I did not authorize a formal application or credit pull. 

That was the last time I had direct communication with XXXX. She continued the process exclusively with my wifewithout informing me of the shift or including me in further discussions. 

My wife submitted the requested documentation, believing XXXX had already coordinated the loan structure with me. At no point were either of XXXX clearly advised of the loans full structure or given a comparison of alternatives. We assumed the direction taken was based on a thorough evaluation. It now appears it was not. 

XXXX. XX/XX/XXXX : Unauthorized Credit Inquiry On XX/XX/XXXX, Gateway ( via XXXX ) submitted a hard credit inquiry under my name. I never signed a credit authorization, was not notified of a formal application, and did not receive any disclosures regarding the loan. This appears to have occurred without my consent and may violate the Fair Credit Reporting Act ( FCRA ). 

XXXX. XX/XX/XXXX : Unexplained Loan Denial On XX/XX/XXXX, I received an email stating I did not qualify for a loan. I had not completed an application, and no one contacted me to explain the reason or implications. This only added to the confusion and raised further concern over how my personal data was being used. 

XXXX. XX/XX/year> : Access Failure and Closing Delay On XX/XX/XXXX, a pre-closing package was sent to me via XXXX, but I was unable to access it because Gateway had an outdated phone number on XXXX my correct number being used in prior Gateway transactions. 

I immediately emailed XXXX, per the instructions in the message, but received no response. I followed up with XXXX the next morning, who corrected the number. However, this avoidable issue delayed closing until XX/XX/XXXX, which in turn delayed funding until XX/XX/XXXX. 

XXXX. XXXX XXXX XXXX : Funding, Payoff Delay, and Financial Harm We were told the loan funded on XX/XX/XXXX and that the {$43000.00} credit card payoff listed on the Closing Disclosure would be sent immediately. It wasnt. The credit card remained unpaid for six additional days. We were given no timeline, tracking, or confirmationonly told the title company was watching their account. 
We have since obtained a copy of the physical check that was mailed to XXXX, and was sent to us along with the {$510.00} check that was owed to us from closing ( letter attached ), confirming that the payment method they used despite receiving no timeline or tracking details from XXXX or the title company We discovered on our own just by checking out XXXX account ( which we did a couple times a day during the process ) that the payment was finally posted the evening of XX/XX/XXXX. 

As a result of the XX/XX/XXXX payment : A {$1200.00} autopayment was withdrawn from our checking account ( XX/XX/XXXX ), causing an overdraft {$680.00} in interest was charged by XXXX ( XX/XX/XXXX ) XXXX initially stated, Did no one tell you to turn off autopay? and later contradicted herself by saying it was a good thing we hadnt No one communicated proactively about the status of the payoff XXXX. Appraisal Concerns and Loan Product Risk Additionally, after final Closing Disclosure valued our home at $ XXXX below its value we discussed in the very beginning of this whole loan process when I told XXXX XXXX we had put in over $ XXXX into improvements on our house, and was further validated by the appraisal done by the county assessor ( attached ). On XX/XX/XXXX we received a county assessor notice valuing the home at {$950000.00}. That assessment was based on a physical walk-through by a county appraiser, which I personally witnessed and met with them when I happened to be at the house in the front yard when they dropped in to do the appraisal.

To our knowledge, Gateways appraiser never inspected the property.

This undervaluation significantly affected our loan structure. Instead of the refinance we intended, we were placed into a second mortgage with a large balloon payment due in XXXX product we would never have knowingly selected. 

This loan includes : A balloon payment of {$82000.00} No plan for refinance or extension XXXX amortization schedule No analysis of our future ability to refinance under different market conditions XXXX. Missing Documents, Unanswered Requests, and Poor Communication On XX/XX/XXXX, I sent XXXX and Gateway a formal request for : 1. Proof and tracking of the credit card payoff 2. Resolution of the interest charge and overdraft 3. Clarification or reimbursement of the autopayment XXXX. A copy of the appraisal report ( as required under federal law ) XXXX responded on XX/XX/XXXX, stating the title company was watching their bank account, but did not provide answers or any of the requested documents. 

Additionally : The appraisal report was never delivered prior to closing Escrows were waived without explanation, leaving us exposed to large tax and insurance obligations Form XXXX and XXXX were signed, but we received no confirmation they were submitted or used promptlyraising questions about verification-related delays 8. Our Position and Request for Resolution We acted in good faith throughout the processsubmitting documents quickly, trusting in our long-standing relationship with Gateway and XXXX, and relying on their expertise to structure the best possible loan. 

Instead, we were left : With a balloon loan that does not match our needs or intent Financially harmed by delayed payoff and overdraft Disregarded when seeking transparency Without critical documents we are legally entitled to This situation could have been prevented with basic care, communication, and professional accountability. 


We Are Requesting the Following : XXXX. Written confirmation of the credit card payoffdate sent, method, and when received XXXX. Reimbursement of the {$680.00} in interest and any overdraft charges XXXX. Clarification or refund of the {$1200.00} autopayment 4. A copy of the appraisal report 5. An internal review of whether a cash-out refinance would have been appropriate based on actual home valueand if so, whether Gateway will consider offering a corrected refinance 6. Documentation of any credit authorization submitted in my name and an explanation for the unauthorized credit inquiry We are not currently pursuing legal action, but we are prepared to do so and are submitting this complaint to formal regulatory channels, including the Consumer Financial Protection Bureau ( CFPB ). 

This is not just a customer service issue. It is a matter of borrower harm, legal compliance, and broken trust. 

Sincerely, XXXX XXXX and XXXX XXXX

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