My wife and I applied for a cash out refinance loan (subject to rescission rights) secured by our personal residence located in California with Nations Choice Mortgage, Gilbert Arizona, (Tel # 1-888-344-9049) and received a Good Faith Estimate on March 3,03, indicating 0% ($0) loan origination fee. I furnished all documents including appraisal, but the loan was not processed within the 45 days lock in period.
On April 30,03 we received a revised Good Faith Estimate for the same loan stating a higher, 0.125% ($759.69) loan origination fee. On May 13,03 we received loan documents & a Settlement Statement which provided a loan origination fee of 0.25% ($1519.38). I questioned this higher loan fee. I did not receive any satisfactory explanation. I was told that if I did not sign the loan documents, my loan would be cancelled.
My wife and I did not sign the loan documents, as the fees being charged were excessive and we did not receive a timely and true disclosure about the higher loan fees in accordance with Reg Z (Truth-in-lending Regulation). It is our right to receive a true and timely Good Faith Estimate of loan fees and Settlement Charges before we agree to a loan and pay any fees.
Nations Choice Mortgage Company acted in bad faith in dealing with us. When I made the loan application, I was asked to make a deposit of $350 that was charged to my MBNA America (Tel # 1-877-382-4357) credit card. We were told that the deposit would be used towards the property appraisal fee. Any balance was to be refunded back to me. On May 23,03, after we did not take the loan, the Mortgage company charged the same credit card an additional $3,873 without any explanation or authorization from me. I have lodged a protest with credit card company (MBNA America) requesting to remove this unauthorized charge from my account. So far no response to my compalint. I have also reported my complaint to Better Business Bureau, Federal Trade commission, CA Department of Corporations & Arizona Department of RE
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