Consumer complaint received 2024-05-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: First Technology Federal Credit Union
State: CA

Complaint narrative:
I am filing a complaint to the Consumer Financial Protection Bureau due to the inadequate and misleading communication regarding the change in my ARM mortgage interest rate held by First Tech Federal Credit Union. 

The following notes should assist you in reviewing the events that have caused me to file this complaint. 

On XX/XX/XXXX, a Fixed Adjustable Rate Note contract was completed with First Tech Federal Credit Union. 

Section XXXX of the loan contract states that. The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. 

Based on Sections XXXX of the loan note I was expecting an email or letter prior to the initial ARM term completion to indicate the amount of the new monthly payment. 

XX/XX/XXXX. I received an email from XXXX XXXX XXXX stating that looks like XXXX is getting ready to adjust. Please feel free to call or email with any questions. 

XX/XX/XXXX. I responded thanking XXXX XXXX for reaching out and asking if he can please let me know the interest rate and monthly payment once the initial loan period expires. 

XX/XX/XXXX. I had a phone meeting with XXXX XXXX. No specifics were communicated regarding the new interest rate and monthly payment once the initial loan period expires. 

XX/XX/XXXX. I received an email from XXXX XXXX stating. I was able to do a little research. I am estimating that your rate will adjust to XXXX or XXXX. The index it is tied to has been moving quite a bit though. He also provided some refinance options. 

XX/XX/XXXX. XXXX. I emailed XXXX XXXX to request exact details about the new interest rate and monthly payment once the initial loan period expires. 

XX/XX/XXXX. I received an email from XXXX giving me several options for refinancing and adjusting the loan and attaching some example documents. Apparently, he seemed to think I was requesting information on a refinance loan. He did not respond to my original request for the new interest rate and monthly payment once the current loan period expires. 

XX/XX/XXXX. I contacted the First Tech Federal Bay Area Mortgage Manager, XXXX XXXX to request specifics on the new interest rate and monthly payment once the initial loan period expires. XXXX XXXX said she did not have information regarding existing loans but will put me in touch with someone at First Tech who does. 

XX/XX/XXXX. I received an email from XXXX XXXX XXXX stating that Good afternoon, we received an inquiry regarding the rate change on your mortgage account ending in XXXX. After review, your rate will not change until XX/XX/XXXX. You will receive a 90-day notice of the change. Please let us know if you have any further questions. My complete and full interpretation of his email was that the current interest rate and monthly payment would not change until XX/XX/XXXX. 

On XX/XX/XXXX, a letter was mailed to my home address via USPS and an email sent to my email account requesting an updated home insurance policy. I responded providing my updated home insurance coverage policy. 

XX/XX/XXXX. I received an email from First Tech stating that that an additional {$1100.00} is due for the XX/XX/XXXX payment in addition to the payment of {$2100.00} that was received on XX/XX/XXXX. 

XX/XX/XXXX. I emailed XXXX XXXX XXXX to inquire why there was an additional amount due for the XXXX XXXX. 

XX/XX/XXXX. I received a response from XXXX XXXX XXXX stating that buried in the statements section of the First Tech online portal is a letter that was sent on XX/XX/XXXX, indicating a rate increase but not addressing his email of XX/XX/XXXX indicating that the next rate change will take effect on XXXX. 

On XX/XX/XXXX I mailed a certified letter to the XXXX XXXX XXXX XXXX, XXXX XXXX XXXX noting the correspondence taken place since XX/XX/XXXX, and requesting he review the issues. No response to my letter has been received to date. 

On XX/XX/XXXX I received an email from I with XXXX XXXX XXXX, requesting I call her. 

On XX/XX/XXXX I spoke with XXXX XXXX who said she can not do anything to rectify the situation noted in my letter to XXXX XXXX. 

If you wish to have a copy of all emails and letters referenced in this letter, please let me know and I will email or mail the copies to your office. 

On XX/XX/XXXX I was forced into a very unfortunate situation in having to find an additional {$1100.00} to be able to pay the XXXX mortgage payment and to do this every month thereafter because XXXX XXXX XXXX could not take the time to notify of me the new monthly payment appropriately. 

Why on XX/XX/XXXX did a representative from XXXX XXXX email me to indicate that my monthly mortgage payment would not adjust until XX/XX/XXXX. Why was XXXX XXXX not able to mail out a letter or send an email 30 days prior to the effective date of the new monthly payment. 

XXXX XXXX XXXX can mail and email a letter when it concerns protecting its loan but when it concerns an increase in interest expense of XXXX per month, they were unable to do the same. 

The loan document and certified letter sent to the XXXX of First Tech Federal Credit Union are included with this complaint filing. 

Please let me know if you require copies of the emails referenced above and any additional information you require.

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