eRates Mortgage

Dear Ms[redacted],
is="qowt-word-para" qowt-eid="E117" id="E117" "margin: 0px; padding: 0px 0px 0pt list-style-type: none;"> Finance of America Mortgage LLC dba eRates Mortgage ("eRates") has reviewed the file and provides the following response:
On March 31, 2016, Mr[redacted] sent a request though Zillow to eRates for a year refinance on his current propertyHe received a quote with "Total Estimated Fees" of $which included a disclaimer that third party fees [redacted] not be includedThere is a pthat states "Third party fees are fees not paid to or controlled by the lenderThey include things like Title, Escrow, Insurance and TaxesSome of these fee you can shop for separately." (See screenshots included with this response) The $fee was based on an appraisal fee of $and a lender credit of $Another pon the on the total lender fees explains that other third party fees [redacted] apply and that a lender credit [redacted] reduce the out of pocket costs
On April 1, 2016, the initial loan application and the LE was sent to Mr[redacted]Both documents listed all costs associated with the loanThe loan application reflects cash from borrower in the amount of $Mr[redacted] electronically signed both documents and returned themDuring the processing of Mr[redacted]'s loan, the payoff quote for his original loan was received with an amount $more than originally estimated at the time of applicationMr[redacted] did not want to increase the loan amount for the increased payoff resulting in an additional $cash to close amount
On April 23, 2016, eRates provided an Estimated Prequalification Cost Analysis to Mr[redacted]This was the first occasion Mr[redacted] expressed dissatisfaction with the closing costsThe loan officer explained the third party costs and increased payoff amount to Mr[redacted]
On April 27, 2016, the branch manager called Mr[redacted] to review the feesMr[redacted] insisted on a "no cost" closingThe initial offer on Zillow contained clear disclaimers and explanations that third party fees are not included and lender credit [redacted] reduce some of the costsInitial loan disclosures provided to Mr[redacted] disclosed all third party costsWe regret that he is unhappy with the term of the loan

Dear Ms. [redacted],In response to your letter regarding the above referenced case, Finance of America Mortgage is providing the following response.1. Mr. [redacted] loan was transferred to our Chino Hills Office on March 16, 2016 with a first payment due date of April 1, 2016.2. At the time that Mr....

[redacted] loan was transferred to our Chino Hills Office, that office did not have the capability to report any credit information to [redacted].3. The Chino Hills Office will begin reporting credit information to [redacted] in June of 2016.   The information reported will be for the month of May.  Unfortunately, Finance of America cannot report any information for the months prior to May. 4. On 4/29/16 the Horsham branch put through a deletion of trade line to Equifax that was created prior to the loan transferring to Chino Hills.  For some reason the trade line was not deleted so we resubmitted the request on 5/11/16. The correction may take up to 60 days.We apologize for any inconvenience this may have caused Mr. [redacted].  If you have any questions or require additional information, please contact me at 972-265-[redacted], extension [redacted].Yours truly,[redacted]Customer Relations Manager

We consider this matter closed as we have already responded and have not changed our position.

March 15, 2016Revdex.com of San Diego, Orange & Imperial Counties[redacted]m Dear Ms. [redacted]We apologize if there w a miscommunication between Ms. [redacted] and her loan officer regarding the distribution of contingency funds on her Construction Loan.FHA has strict...

guidelines on how and when the monies on a Construction Loan can be disbursed. In reviewing Ms. [redacted]’s complaint found that Finance of America Mortgage complied with all FHA guidelines regarding the distribution of funds. Ms. [redacted] signed the 203 (k) Borrower’s Acknowledgment, Contractor Acknowledgment and Rehabilitation Loan Agreement; all outlined the distribution of contingency funds.To date, Ms. [redacted] has been given a full reconciliation of the distribution of funds and seems to be satisfied.In my reply, I forgot to address the payment increase.  The payment increased due to the taxes and insurance increasing.  We are having our escrow department contact Ms. [redacted] to explain that to her. Regards, [redacted]

March 25, 2016Revdex.com of San Diego, Orange & Imperial CountiesRE: [redacted]ID # [redacted]Dear Ms. [redacted],The [redacted]’s loan was transferred to Finance of America from another servicer.  The prior servicer did not make the necessary changes to the [redacted]s loan regarding the taxes and escrow....

 When the [redacted]s notified Finance of America of the change and provided documentation, the escrow account was updated and a refund will be sent to the borrower.Respectfully[redacted]Customer Relations Manager

October 10, 2016
 
Revdex.com Complaint # 10990246
 
Finance of America Mortgage LLC dba eRates (“eRates”) has reviewed Mr. [redacted] concerns regarding the transferring of the appraisal report.
 
Regulations only require the lender to provide a copy of the appraisal report to the...

consumer. However, it is common practice in the industry for a lender to transfer an appraisal to the new lender via a Submission Summary Report.  Our records indicate on January 4, 2016 the appraisal was transferred to [redacted] with eLend.  We trust the letter provides a satisfactory resolution to Mr. [redacted] concerns.
 
Regards
[redacted]
Customer Relations Manager
[email protected]

We have received the additional comments from Mr. [redacted] dated September 18, 2016.  Mr. [redacted] stated in his original complaint that he would like to be reimbursed the additional $236.50 for the appraisal fee.  [redacted] agreed to reimburse him and we are unclear as to why this is not acceptable.  The check for reimbursement has already been sent to Mr. [redacted].   We consider this matter now closed.

Or records indicate Ms. [redacted] was supplied with an Estimated Prequalification Cost Analysis dated September 13, 2016 with the original loan amount of $160,000.00 The Prequalification Cost Analysis states it’s intended solely for pre-qualification information purposes, and that it reflects proposed loan terms and estimated costs typical of this type of loan transaction.  Please note that all loans need to go through the Underwriting process, which includes a review of the appraisal, and can result in a different offer than pre-qualification.  When the appraised value of the property came back lower than the estimated property value, eRates had to reduce the loan amount. Our records indicate a rate of 3.750% was listed on the loan commitment dated September 21, 2016.  Further, after the loan amount decreased, the Change of Circumstance notice dated October 25, 2016, reflected the same interest rate of 3.750%, and noted a change in origination charges and lender credits.  The interest rate was still being honored as originally quoted. We apologize if this was not clearly stated in our previous response. We believe this letter addresses Ms. [redacted] additional concerns and now consider this matter closed.

Dear Ms. [redacted],
id="docs-internal-guid-a49d8527-a725-d7ee-2ace-4fbb0efa3fd8">In response to your letter regarding the above referenced case, Finance of America Mortgage is providing the following response.
1. Mr. [redacted] loan was transferred to our Chino Hills Office on March 16, 2016 with a first payment due date of April 1, 2016.
2. At the time that Mr. [redacted] loan was transferred to our Chino Hills Office, that office did not have the capability to report any credit information to [redacted].
3. The Chino Hills Office will begin reporting credit information to [redacted] in June of 2016.   The information reported will be for the month of May.  Unfortunately, Finance of America cannot report any information for the months prior to May.

4. On 4/29/16 the Horsham branch put through a deletion of trade line to Equifax that was created prior to the loan transferring to Chino Hills.  For some reason the trade line was not deleted so we resubmitted the request on 5/11/16. The correction may take up to 60 days.
We apologize for any inconvenience this may have caused Mr. [redacted].  If you have any questions or require additional information, please contact me at 972-265-[redacted], extension [redacted].
Yours truly,
[redacted]
[redacted]
Customer Relations Manager

Thank you for your feedback.  We believe we addressed all the concerns in our original response.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
Thank You for answer my complaint. Well, First The Loan Agreement was to close in 45 days. My property is not a Condominium; is a duplex (two units) just to clear that! Regarding to the account opening on October 21, 2016 has not a balance at that time, Erates do not tell me nothing about any (DTI) ineligibility. About the 6 months of liquid assets I send a proof of Bank Statements, 401k Savings Plan from Me and co-borrower also a Bank Account Statement of wife Ernesto with enough balance to cover the 6 months liquid of assets.
Regarding to the 6 moths of prepaid taxes I send a proof by email to [redacted] and [redacted] showing those taxes was paid already by the previous Lender, they tell me that will be fixed at the close day.
 
Regards,
[redacted]

We are sorry this borrower misunderstood the terms of the loan, but all fees were properly disclosed to him in writing.  Appraisals are considered 3rd party fees.

March 15,...

2016
Revdex.com of San Diego, Orange & Imperial Counties
[redacted]
[redacted]m
 
Dear Ms. [redacted]
We apologize if there w a miscommunication between Ms. [redacted] and her loan officer regarding the distribution of contingency funds on her Construction Loan.
FHA has strict guidelines on how and when the monies on a Construction Loan can be disbursed. In reviewing Ms. [redacted]’s complaint found that Finance of America Mortgage complied with all FHA guidelines regarding the distribution of funds.
Ms. [redacted] signed the 203 (k) Borrower’s Acknowledgment, Contractor Acknowledgment and Rehabilitation Loan Agreement; all outlined the distribution of contingency funds.
To date, Ms. [redacted] has been given a full reconciliation of the distribution of funds and seems to be satisfied.
In my reply, I forgot to address the payment increase.  The payment increased due to the taxes and insurance increasing.  We are having our escrow department contact Ms. [redacted] to explain that to her.
 
Regards,
 
[redacted]
[redacted]
[redacted]

Or records indicate Ms. [redacted] was supplied with an Estimated Prequalification Cost Analysis dated September 13, 2016 with the original loan amount of $160,000.00 The Prequalification Cost Analysis states it’s intended solely for pre-qualification information purposes, and that it reflects proposed loan terms and estimated costs typical of this type of loan transaction.  Please note that all loans need to go through the Underwriting process, which includes a review of the appraisal, and can result in a different offer than pre-qualification.  When the appraised value of the property came back lower than the estimated property value, eRates had to reduce the loan amount.
Our records indicate a rate of 3.750% was listed on the loan commitment dated September 21, 2016.  Further, after the loan amount decreased, the Change of Circumstance notice dated October 25, 2016, reflected the same interest rate of 3.750%, and noted a change in origination charges and lender credits.  The interest rate was still being honored as originally quoted. We apologize if this was not clearly stated in our previous response.
We believe this letter addresses Ms. [redacted] additional concerns and now consider this matter closed.

Last year I attempted to refinance a rental property. I have stellar credit, over 780 average. About 40% equity in home based on their appraisal. Before signing with them I laid out my situation with them as clearly as possible as this is not a single W2 transaction. They said no problem. They are quick and fast and will handle this.
Five weeks later they find new concerns with the documents I provided, even though I already addressed these issues on day one. I then remedied exactly what they asked. Four weeks later, after rates started to go up again, they finally said that what I provided, what they asked for, is now not ok. Best guess, they knew they would have to eat the increased rate and wanted to get rid of me in place of their incompetence.
It is their right to say no, but they should have said no eight weeks prior. They said they were fast, yet it took over two weeks for them to reply to me at least once. I always acted in good faith, always, and responded within one business day. I do not believe they ever acted in good faith, and were certainly not quick.
They have now hurt my stellar credit by lying to me. I would not wish them on my adversaries. There are many money lenders out there, most of them bad, they are aiming to win the battle of the worse. I recommend you try your luck with any other.

We have received the additional comments from Mr. [redacted] dated September 18, 2016.  Mr. [redacted] stated in his original complaint that he would like to be reimbursed the additional $236.50 for the appraisal fee.  [redacted] agreed to reimburse him and we are unclear as to why this is not acceptable.  The check for reimbursement has already been sent to Mr. [redacted].
 
We consider this matter now closed.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
While it is true that there is a disclaimer that states that there [redacted] be 3rd party fees associated with the loan, [redacted] told me over the phone when we spoke, that my loan would not have any. By the time I had received the document stating the cost I had already paid for the appraisal of $455. I didn't even know to look for the document, since I was already told by [redacted] what my costs would be.  I though I was signing for them to pull my records. This a clear cut example of "bait and switch". You can't lie to someone and tell them one thing and make them pay to get the process started and then disclose more costs. 
Regards,
[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]

Finance of America Mortgage LLC, dba eRates (“eRates”) is in receipt of the above referenced complaint submitted on November 1, 2016.  We appreciate the opportunity to respond to Ms. [redacted] concerns regarding her loan application.
Our records indicate Ms. [redacted] applied for a cash out refinance in the amount of $160,000.00.   When eRates received the appraisal, the property was valued at $182,000.00 which was lower than the estimated value of $200,000.00. Due to the determined value of the property, the loan amount was decreased to $145,000.00.  The threshold of the loan amount at which rates change is $150,000.00, therefore eRates sent Ms. [redacted] a Change of Circumstances notice outlining the rate changes on October 25, 2016.
Our records indicate Ms. [redacted] found another lender that met her lending needs and cancelled the loan on October 25, 2016. In addition, Ms. [redacted] requested that her appraisal be transferred to her new lender and eRates complied with that request on October 26, 2016.
We believe this letter addresses Ms. [redacted] concerns.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]