Consumer complaint received 2024-12-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: GOLDEN 1 CREDIT UNION, THE
State: CA

Complaint narrative:
Introduction and Transaction Details We are filing this complaint due to serious issues encountered during our mortgage transaction with Golden 1 Credit Union Credit Union for the purchase of our first home at XXXX XXXX XXXX XXXX XXXX XXXXXXXX. Throughout this process, we experienced significant financial impacts and extreme emotional stress due to Golden 1 Credit Unions handling of our loan, specifically while the home loan advisor XXXX XXXX managed it. Golden 1 Credit Unions actions resulted in a higher-than-expected interest rate, inconsistent communication, and unauthorized changes to our application that caused extensive delays with closing our home loan. 
Delays with the closing process and closing disclosure or other related disclosures Unauthorized Loan Cancellation and Resubmission : On XX/XX/year>, we initiated our XXXX home loan application with Golden 1 Credit Union Credit Union. On XX/XX/year>, we received the initial disclosures and an ROV ( Rate of Value ) and informed the Golden 1 Credit Union home loan advisor XXXX XXXX of several discrepancies and inconsistencies in the disclosure but he did not correct the discrepancies, instead he told us that the incorrect information we were concerned about were place holders to move the application through and were not as important as making sure our names and SSNs were correct. XXXX closed our initial application from XX/XX/XXXX and opened two new applications dated XX/XX/year>, without notifying us in advance or securing our approval, which is highly unorthodox and inconsistent with standard industry practices. When we inquired about why our initial application was closed and two new applications completed without our prior knowledge or approval XXXX stated that it was it necessary to close the initial application because of XXXX  rules but did not provide us with any additional information or reasoning. Due to our concerns, we did some research and found that this practice is inconsistent with key principles of transparency and fair lending because a home loan advisor or lender can not open a new loan application or close your original loan application without the applicants knowledge or consent. This unauthorized action of creating a new application caused more confusion and delays and led to further complications in retrieving our FHA case number from our previous mortgage lender, XXXX XXXX, further extending our timeline unnecessarily. 
The Real Estate Settlement Procedures Act ( RESPA ), Truth in Lending Act ( TILA ), and California lending regulations mandate that lenders provide borrowers with accurate, timely disclosures and updates, especially in processing XXXX  loans. These regulations also emphasize the importance of efficient loan handling and clear borrower communication to prevent unnecessary delays. The multiple changes to our loan applications, inconsistent updates, and the failure to notify us of material decisions ( such as the closure of our original application ) may constitute violations of these federal and state obligations. 
Failure to Lock in Quoted Interest Rate : When we first approached Golden 1 Credit Union for the home loan, we were initially quoted an interest rate of 6.125 % by the home loan advisor XXXX XXXX who confirmed to us via text message on XX/XX/XXXX that he had locked in the home loan rate of 6.125 % the week prior. However, we later learned that XXXX XXXX never initiated a rate lock while it was at 6.125 %, in fact our rate was not locked in until the last week of XXXX when it was at 6.500 % which resulted in a permanent increase to our monthly mortgage payment. This could have been avoided with due diligence in honoring the originally quoted rate and when we mentioned this issue as well as the proof via the text message information our concerns were brushed aside. In the end Golden 1 Credit Union informed us that it was XXXX that had control of locking in the rate, but through research and assistance from our realtor we found out that information was incorrect because the loan advisor is the one who requests the loan rate lock-in from XXXX through the XXXX  portal. 
Trying to communicate with the company to fix an issue with the loan closing Delayed Loan Processing and Missed Deadlines : Despite our realtors exceptional efforts to communicate and secure extensions to avoid contract breaches, our loan advisor XXXX XXXX denied requests for an extension on three separate occasions ( XX/XX/XXXX, XX/XX/XXXX, and XX/XX/year> ). Each time, XXXX XXXX assured us and our realtor that the closing process was on track, only for us to reach the original closing deadline of XX/XX/year>, without the loan being processed. This lack of accurate and timely communication in addition to the mishandling of our applications created avoidable complications. Due to the repeated delays and communication lapses from Golden 1 Credit Union, we were unable to close by the original deadline and eventually, on the originally agreed upon date of closing XX/XX/year>, Golden 1 Credit Union agreed to the extension, but only at the last minute, adding to the stress and complexity of our transaction. According to California real estate and lending regulations, as well as federal guidelines under RESPA ( Real Estate Settlement Procedures Act ) and the Truth in Lending Act ( TILA ), lenders must provide borrowers with accurate disclosures and timely updates, especially when processing XXXX loans. The lack of clear communication may constitute a breach of these obligations. Additionally, federal guidelines, particularly those related to XXXX loans, require that lenders handle applications efficiently, avoid unnecessary delays, and keep borrowers informed of any material changes. 
Communication and Coordination Issues-Inconsistent and Poor Communication : Throughout the entire home loan transaction with Golden 1 Credit Union communication from XXXX XXXX was inconsistent and often delayed. He provided us with loan tasks late in the day after XXXXXXXX XXXX and most commonly on XXXX. This made it difficult to complete these tasks promptly, as we both work full-time and created further delays because Golden 1 Credit Union closes at XXXX. and they do not process tasks over the weekend. Key information was also often communicated verbally without follow-up emails, leading to discrepancies in what we understood to be required and creating further delays. '' Inaccurate Closing Costs and Monthly Payment Information : Due to Golden 1 Credit Unions inconsistent communication and mishandling of our XXXX home loan, we received fluctuating information on our final monthly mortgage payment and required cash-to-close. Initially quoted approximately {$3200.00} on the Closing Disclosure, additional last-minute ( the day before closing ) conditions from Golden 1 Credit Union increased our closing costs to {$4800.00}. This created significant financial uncertainty and confusion as we attempted to prepare for closing. 
Financial and Emotional Impact Financial Impact : Due to Golden 1 Credit Unions failure to lock our original interest rate and the additional costs incurred from inconsistent updates on closing costs, we face a higher monthly mortgage payment than anticipated. This unexpected increase has had a direct XXXX  impact on our budget as first-time homebuyers. Additionally, the fluctuating cash-to-close and missed deadlines created unnecessary financial stress. 
Emotional Stress : This process has been highly stressful, emotionally draining, and caused significant mental health issues to myself and my wife. The multiple delays, unprofessionalism, miscommunication, blatant disregard for regulations, and unapproved actions by our Golden 1 Credit Unions home loan team have completely diminished our confidence and trust in their institution. As long-standing members of Golden1 Credit Union we are disheartened that we have were treated with such contempt and made to feel isolated and at fault for the delays and lack of professionalism that ensued throughout our transaction.

Company response to consumer: Closed with explanation