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In New Jersey

BBB Accredited Business since

Freedom Mortgage Corporation

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Phone: (800) 220-3333 907 Pleasant Valley Ave Ste 3, Mount Laurel, NJ 08054 https://www.freedommortgage.com/

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Description

Mortgage Service provider

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Freedom Mortgage Corporation meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

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Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that raised the rating for Freedom Mortgage Corporation include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 151 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.


Customer Complaints Summary Read complaint details

151 complaints closed with BBB in last 3 years | 51 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 13
Billing/Collection Issues 31
Delivery Issues 16
Guarantee/Warranty Issues 1
Problems with Product/Service 90
Total Closed Complaints 151

Additional Information

top
BBB file opened: October 30, 1991 Business started: 03/01/1990 in NJ Business started locally: 03/01/1990 Business incorporated: 03/01/1990 in NJ
Type of Entity

Sole Proprietorship

Business Management
Stanley Middleman, CEO
Contact Information
Principal: Ms. Roseanne Goldberg, Vice President, Servicing
Business Category

Mortgage Bankers

Service Area
National Mortgage Lender

Additional Locations

  • 907 Pleasant Valley Ave Ste 3

    Mount Laurel, NJ 08054 (800) 220-3333

  • THIS LOCATION IS NOT BBB ACCREDITED

    21 Corporate Drivev

    Clifton Park, NY 12065

  • THIS LOCATION IS NOT BBB ACCREDITED

    281 Oakland Rd

    South Windsor, CT 06074

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    104-60 Queens Boulevard

    Forest Hill , NY 11375

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    1488 Selworthy Road

    Potomac, MD 20854

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    10500 Kincaid Drive, #300

    Fishers, IN 46037

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    407 S Walnut Street

    Bloomington, IN 47401

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    7739 East Brainerd Road

    Chattanooga, TN 37421

  • THIS LOCATION IS NOT BBB ACCREDITED

    4400 North Federal Hwy., #210

    Boca Raton, FL 33431

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    1431 Opus Pl Ste 515

    Downers Grove, IL 60515

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    7800 Equitable Dr Ste 150

    Eden Prairie, MN 55344

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    1600 E Robinson St Ste 250

    Orlando, FL 32803

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    2180 W SR 434

    Longwood, FL 32779

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    700 W Granada Blvd Ste 101

    Ormond Beach, FL 32174

  • THIS LOCATION IS NOT BBB ACCREDITED

    10730 Barker Cypress Road Ste BB

    Cypress , TX 77433

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    428 E. Thunderbird Road

    Phoenix, AZ 85022

  • 1808 Aston Ave #190

    Carlsbad, CA 92008

  • 9909 Mira Mesa Blvd #160

    San Diego, CA 92131

  • 1
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Complaint Detail(s)

7/12/2014 Advertising/Sales Issues
7/8/2014 Billing/Collection Issues | Read Complaint Details
X

Additional Notes

Complaint: I have been paying my mortgage well before time every month since I have been with Freedom Mortgage. Since March 2014 - I have been trying to refinance my mortgage, In May my new lender asked me to obtain Verification of mortgage document from Freedom Mortgage. I sent this request right away to Freedom mortgage as urgent request so I could complete the refinance in May 2014 itself. When I contacted freedom mortgage's servicer Loan Care they gave me different information on 4 different instances. Some one said 2 days, someone said 5 days and then someone said upto 9 days. With this I ended up getting delayed with refinance closing till June 16th. Also, When I spoke to a "supervisor" back in May he said If my refinance happens after due date of the month, they will waive off the $207 late fee charge. I am already required to pay Full months interest and PMI for month of June, Now Freedom mortgage wants me to also pay Late charge as well, which was promised by "supervisor" that it will be waived since I am paying off the loan in full, paying full months interest and PMI and it does not make sense for me to pay a "Late fee" as well. I called customer service twice since yesterday, and spoke to new "supervisors" and they are not waiving the late fee charge. In this world and age it seems really UN-ethical to charge a late fee on a loan that is paying full month's of interest and PMI where as Loan was just serviced for less than 20 days and also my closing was delayed by a month which costed me over $2000. Also, when speaking to Customer service and Supervisor at Loan care (freedom mortgage servicer), folks were very rude on the call and simply denied to help or listen to the problem. I will advise everyone in friends and family to stay away from freedom mortgage. My Loan # with freedom mortgage is *********** I am requesting BBB to step in and help.

Desired Settlement: I am looking for freedom mortgage to refund me Late fee charges and also compensate me for 1 months for Interest and PMI that I had to pay because Freedom mortgage did not provide *** document in time and my closing was delayed due to that.

Business Response: Mr. ***** I apologize for the frustration you had with our servicing center. Please be advised that I have submitted a check request to refund to you the late fee on your account. You should receive the refund in about 7 business days via regular mail


Sincerely

******** ******** **** *********
Freedom Mortgage Corporation
*

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

6/30/2014 Problems with Product/Service
6/25/2014 Advertising/Sales Issues
6/20/2014 Problems with Product/Service
6/19/2014 Billing/Collection Issues
6/9/2014 Problems with Product/Service
6/3/2014 Problems with Product/Service
6/1/2014 Problems with Product/Service
5/28/2014 Problems with Product/Service
5/23/2014 Problems with Product/Service
5/21/2014 Problems with Product/Service
5/20/2014 Delivery Issues | Complaint Details Unavailable
5/2/2014 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: My mortgage company was recently changed from ******** to Freedom Mortgage (my original mortgage was through ******* Since my loan was changed to Freedom Mortgage, they've sent me an adjusted amount for my escrow account claiming that I was going to have to pay an additional $1,200 yearly, which I could pay as a one-time fee or have my monthly mortgage raised by about $350.00. I contacted them with questions about the bill and let them know that they were charging me for my county taxes four times instead of twice. They wrote this off as a computer error, however, I have two other friends that also have Freedom Mortgage that the same thing happened to them. Either way, my mortgage was going to go from $1,498 to $1,755 if I didn't contact them and got the situation solved. I've contacted them now seven times since March 6, 2014. It is now 16 April 14, and I have yet to have any resolution to this issue. I've spoken to customer service five times, and twice with supervisors. I've even been given supervisors numbers and told that the situation would be solved in three to five business days multiple times; however, it has yet to be solved. I also had my lender contact them with me as my personal representative and walk them through the process on how to find out what my county taxes are and how often I have to pay them. Based on the bill, they have my yearly county taxes estimated correctly, they just have the same amount coming out four times instead of twice. Either way, I'm now 15 days late on my bill because this issue has not been resolved. If it doesn't get fixed soon, I will have no choice, but to get a lawyer involved.

Desired Settlement: I just want to have my bill adjusted to reflect the correct amount so I can pay my bill like I've been paying for seven years now. This is the latest I have ever been on a bill and I'm afraid they are going to report me to a credit agency and ruin my credit because of something they did.

Business Response: Mr. ******* I apologize for the frustration you experienced with your escrow account issue. The tax error was corrected but it seems that the analysis was never completed. We have since had the anaysis completed. Below is the new payment amount effective with the 5/1 payment:

P&I 1,319.22
ESCROW PMT 198.75
SHORTAGE 46.77
A&H .00
OTHER .00
TOTAL PMT 1,564.74

Please let me know if I can assist further

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.

Regards,

******* ********













BBB's Final Determination: Consumer accepted resolution offered by the business.

4/26/2014 Problems with Product/Service
4/26/2014 Billing/Collection Issues
4/26/2014 Problems with Product/Service
4/17/2014 Delivery Issues | Read Complaint Details
X

Additional Notes

Complaint: Here is a little background that may help us resolve this issue: My husband is a retired civil service worker from the Veterans Administration. A few years ago we secured a VA home loan that was immediately sold to GMAC which is now in chapter 11 bankruptcy. For a while we were being serviced by ****. As you probably know, **** desired to rid itself of its mortgage operations. Our loan is now being serviced by ***** Financial Services. For the past few months we have received numerous calls and messages from Freedom Mortgage, soliciting our business. ***** and Freedom Mortgage claim to have a partnership with each other for streamlining VA loan refinancing. We have told Freedom, on the few times that we actu**** talked to them, that we are not interested in loan refinancing through them. On Friday, April 4, 2014, we received via priority mail, a loan package from Freedom Mortgage. It includes a large folder containing loan application documents, filled out with my husband's and my name, address, and information in regards to our current home loan. We did not solicit this package. We are concerned that should we desire to do a refinance with another company, it will appear that we already have a loan request in progress. We wish to make it perfectly clear to Freedom Mortgage that we do not desire to refinance with them. Furthermore, we want an acknowledgement from the company that we did not request a loan through them.

Desired Settlement: No more calls, soliciting our business. Written acknowledgement that we did not initiate a request for a loan through Freedom Mortgage.

Business Response: Mrs. ****, upon receipt of your complaint I asked our marketing department to look at your records. I do see that they sent some marketing materials to you. Based on your letter I asked them to remove you from and future solicitations either by phone or mail. I will also assure you that there is no record of an application of any sort on our system or any system of record. We fully acknowledge that you did not submit a loan application with us.

******** ********
**** *********
Freedom Mortgage Corporation

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9******* and find that this resolution is satisfactory to me.

Regards,

******* ****












BBB's Final Determination: Consumer accepted resolution offered by the business.

4/13/2014 Delivery Issues
3/31/2014 Delivery Issues
3/31/2014 Problems with Product/Service
3/28/2014 Problems with Product/Service
3/13/2014 Billing/Collection Issues
3/9/2014 Advertising/Sales Issues
3/9/2014 Billing/Collection Issues
3/1/2014 Problems with Product/Service
3/1/2014 Problems with Product/Service
2/26/2014 Problems with Product/Service
2/19/2014 Problems with Product/Service
2/7/2014 Billing/Collection Issues
1/8/2014 Problems with Product/Service
1/7/2014 Problems with Product/Service
1/7/2014 Problems with Product/Service
1/2/2014 Billing/Collection Issues
1/2/2014 Problems with Product/Service
12/27/2013 Problems with Product/Service
12/8/2013 Problems with Product/Service
12/4/2013 Billing/Collection Issues
11/13/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: started refinacing over 4 months ago.did everything they asked faxed all papers the same or next day,credit score is good,appraisel that i paid 505.00 in cash for came back better than good,ive been through 5 differant people know two went on vacation while they had my case.was told july 19 all was good should close by end of the week.on aug 13 was told they cant keep my locked in rate of 3.25 but if i wanted i could do a differant loan and pay off bills and get a 5.25 rate.no other opptions so i told them to send the papers to look at the #s.waited a week no papers called was told he got promoted ill have a new guy **** name ***.three days later got a call from *** sayed he didnt know my case so he would get with the two last guys and get the papers to me within 2 days.now two weeks later havent heard or got nothing started calling and emailing asking for help first guy wrote me said he was sorry hell look into it other guy never answered.now on september 4 th i get a call from a lady looking at my file and tells me shes sorry that that file was closed on aug.14 the day after they lost my locked in rate.im permantly disabled and live on ssi thats why im trying to refinance im out 505.00 90.00 for three differant payoff inquaries on my mortgage,all my time and gas getting all papers and faxing them plus at least 2% interest on a 30 year loan.thats 1,000.00s of dollars.and all they say is were sorry.Can a company really treat someone like this and get away with it.i feel helpless and ripped off please help or let me know what to do.thanks ****

Desired Settlement: do what they gave me in writing give me my loan at 3.25 the rate they gave me.i did nothing wrong not my fault they just didnt finish my loan.its almost 5 months now.

Business Response: Mr. ******** I reviewed the history of the application you had in process with us. You application was taken on 4/29/13. You did not return the disclosures until 15 days later, meanwhile the clock was ticking on the interest rate. There was also a 17 day delay when the appraisal order was cancelled because the fee for the appraisal had not been paid. There was also a gap in processing from 7/11 to 8/14 while you and the loan officer were dicussing the Mortgage insurance requirements on the loan. Freedom extedned the rate lock at our cost three times on your application. The last expiration could not be re-locked at Freedom's cost due to the delays. I noticed that the current loan you have is a conventional loan with a rather high interest rate. I also see some discussion about the possibility of re-opening a new application under a conventional program. While the rate would be current market rate it would still be quite a bit lower than your exising rate. If you would be interested in that I can have a loan officer reach out to you. If not I would be happy to refund you the appraisal fee you paid. Please let me know by emailing me at
*************************************


Freedom Mortgage Corporation

Consumer Response:
Complaint: *******

I am rejecting this response because:
On aug,21 **** emailed me and sad he had been transfered and that he gave my case to his freind named *** and that he would call me,a week later he called me said he would talk to **** and **** because he knew nothing about my case i was still waiting for a closing date but they told me the tax papers werent back.sep,3 **** called me and said my new prosseser was ***** ***** then a week later i got the phone call telling me my case was closed 8-13 the day they lost my locked in rate and they still didnt get my tax papers back yet.so **** closed my account and passed it on before he left.i have all my emails to prove all im saying.it wasnt because i wouldnt pay the tax no i didnt want to and was told i shoulnt have to because of my appraisel coming in high i was under the 80 persant.**** even sent me a good faith letter without the pmi on it.


Regards,

**** *******





























BBB's Final Determination: BBB determined that while the business addressed the complaint issues, the complanant was dissatisfied and the matter was outside the BBB Rules of Arbitration.

10/2/2013 Billing/Collection Issues
9/24/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Freedom Mortgage solicited my business for a refinance. Their representative assured me their company could reduce my monthly payment from $1330 per month to $1210 per month with zero closing costs. After 6 months of service, they recalculated my Escrow needs as $857.66 short. My property taxes did not increase, nor did my property insurance. Since I was unable to pay this amount in a lump sum, my monthly payments went to $1285 per month. Since there was no increase to the escrow burden, Freedom mortgage was either negligent or deceitful in their offer. I cancelled a refinance I had underway with another lender because Freedom mortgage made this specific offer. My new monthly payment is more than I would have had with the other lender.

Desired Settlement: I believe Freedom Mortgage should pay the $857.66 escrow shortage, since it was their miscalculation / false advertising.

Business Response: Mr. *********, after getting your complaint I reviewed the closing documents as well as the escrow information on you account. What seems to have happened is that the closing agent reported that your taxes were due in three installments but our servicer's tax service pays them once annually to receive the discount. Because of the difference in the amount and timing of the tax payment your escrow account is short. I asked the servicing center if the installment plan could be used but according to the them tax service pays the all OR loans once annually and can not change that for a single loan. The escrow department suggested reducing the amout required as a cushion in your account, which would off set the shortage. They re-analyzed the account and the payment would be 1233.76 effective with the 10/1 payment. Please let me know if you are agreeable with this by either emailing me at ************************************* or calling me at ************** * ****

******** ********
Vice President
******* ******** ***********

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me. Freedom Mortgage's **** ********* of Customer Service has restored my confidence in the company that "owns" my home.  Thank you BBB for facilitating the resolution, and thank you ******** (and Freedom Mortgage) for the solution you provided.

Regards,

***** *********



















BBB's Final Determination: Consumer accepted resolution offered by the business.

9/24/2013 Advertising/Sales Issues
9/8/2013 Problems with Product/Service
9/8/2013 Problems with Product/Service
8/29/2013 Problems with Product/Service
8/26/2013 Advertising/Sales Issues | Read Complaint Details
X

Additional Notes

Complaint: I was in the process of a ** refinance with this company, I asked several times for a written policy for the refinance because every department that the process took me to the next step asked me for more and more documents and more hoops to jump through. In the end the representative I was working with refunded a mortgage payment to me which in turn put me behind a month on the refinance. He told me not to worry that I was a customer with them currently and that they would take care of me. In the end I was 30 days behind on my payment because I was skipping a payment due to the refinance process. The most concerning part of this is that my husband an active duty **** service member is currently deployed and even though I have power of attorney for him the company kept stating that he needed to sign the paperwork himself. This is why I requested the written policy for the ** refinance, which I never received. I had a terrible experience and very poor customer service with this company.

Desired Settlement: I would like to have the company refund my late fee from ******** in the amount of $150.00 and I would like a written apology.

Business Response: Dear **** ******, I do apologize for the frustration that you had with your loan application. The late fees that were charged to your account have been waived. In regards to the requirement of original signatures from your husband, the ** requires, even with a ***, that he sign loan applications. Please see the attached, in particular ****** *** Requirements". This explains that his signature was still required even with the Power Of Attorney you had.

******** ******** **** ********* ******** ******* ******* ******** ***********

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

8/26/2013 Billing/Collection Issues | Complaint Details Unavailable
8/14/2013 Delivery Issues | Complaint Details Unavailable
8/9/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Had been customer with Freedom Mortgage at *** ********* ***** ******** ** property. Pre-qualified for a new property *** ********** ** ****** ** on June 13th 2013. Sold the *** ********* property on June 28th 2012 and moved out since was already pre-approved ***********). Had a closing date of July 11th 2013 for the new property. I had already put down $1100 in earnest funds, paid $270 for inspection, and $395 for the appraisal requested by Freedom Mortgage. July 11th closing date came by and I did not close. What is more upsetting is the title company (reliant title), my agent (******* ******), and myself tried contacting somebody on that day and no response. Finally got a hold of the loan processor on July 12th with the explanation that we could not close since paperwork still was not done by the underwriter. Later that day I was told they (Freedom Mortgage) could not process the loan for me. I demanded the loan processor put the manager on the phone so they can explain why it took over a month to determine I was not getting the loan. It is now July 17th 2012 and have not heard from Freedom mortgage with an explanation of why this happened to me and how they are going to make this transaction right, since I'm so invested.

Desired Settlement: Something has to be done to correct Freedom Mortgage's loan processing to prevent others from losing out on earnest money for lack or failure to process paperwork in a timely manner. I'm out $1765 for this loan not to mention having to acquire a new loan or rent since I'm out my previous house.

Business Response: *** ******* I am sorry that we were not able to finance the property you were purchasing. Until a loan is reviewed by an underwriter a final approval can not be issued. The pre-approval is conditioned on final underwriting approval. The reason that we could not approve the loan was your debt to income ratios were to high. The loan to value was 95% and the debt to income ratios were 44.97 and 59.25. With ratios that high we would have been unable to get the required mortgage insurance on your loan and therefore could not approve it. I would be happy to refund the inspection and appraisal fees. If you could email me the paid invoices I will submit a request to our accounting department. My email is *************************************
******** ******** ** ******** ******* ******* ******** ***********

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me.

Regards,

***** ******














BBB's Final Determination: Consumer accepted resolution offered by the business.

8/9/2013 Problems with Product/Service
7/31/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Employees made mistakes which nearly lost me possibly the only condo in San Diego which I could afford. I had to contact the bank directly in order to rectify the problem, since BluFi wouldn't. One of the office managers was very unhelpful and borderline condescending. I asked her for further assistance with the numerous issues, but found out from my lender the manager never made contact about any of the issues. The person handling the underwriting would absolutely not respond to my emails or phone calls the entire week before I dropped BluFi as my lender. They advertise a 21 day closing guarantee with two day underwriting. I was working with them for well over a month and underwriting took over a week and was not finished by the time I dropped them. They claimed after all this time, low owner occupancy in the condo complex made me ineligible to purchase. This was not true and I have just closed in under 20 days with another lender. Their ignorance and apathy for my situation caused such a delay that loan rates skyrocketed two percent during this time, costing me hundreds more a month with my new lender. On top of that, I had to pay a new appraisal fee.

Desired Settlement: A refund of the appraisal fee and to no longer claim a 21 day closing guarantee unless they stand by the guarantee with some sort of reimbursement.

Business Response: Mr. **********, 

Thank you so much for your feedback regarding your experience with BluFi Lending.  As discussed, I have agreed to reimburse your appraisal fee and have honored the terms of the 21 day guarantee. I apologize that your service level was not at the level expected nor at the level we demand. Thank you again for your feedback and if I can be of further assistance please do not hesitate to contact me directly.

Sincerely,

****** ********
Vice President
Director of Human Resources and Compliance
P.     ###-###-####
F.     ###-###-####
E.     ******.********@BluFi.net

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, 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,

***** **********

BBB's Final Determination: Consumer accepted resolution offered by the business.

7/11/2013 Problems with Product/Service
7/8/2013 Delivery Issues
6/22/2013 Problems with Product/Service
6/22/2013 Billing/Collection Issues | Complaint Details Unavailable
6/18/2013 Problems with Product/Service
6/13/2013 Problems with Product/Service
6/13/2013 Advertising/Sales Issues
6/13/2013 Problems with Product/Service
6/13/2013 Advertising/Sales Issues
6/12/2013 Problems with Product/Service
6/3/2013 Problems with Product/Service
5/29/2013 Billing/Collection Issues
5/19/2013 Problems with Product/Service
5/17/2013 Delivery Issues
4/26/2013 Problems with Product/Service
4/22/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I had the most horrible customer service with BluFi, Carlsbad. I have excellent credit scores, excellent job, finances, appraisal, etc. My loan documentation was miss managed by at least 3 people, I had to resubmit documents that they've misplaced or lost numerous times. Based on their recommendation, I took their recommendation to pay down the loan amount for a better rate, from my stock account. Their turn around time for the loan was misrepresented and false just to gain my business. I finally was approved, but I was so disgusted with their service level and mis-handling of my documentation, I told them I am taking my business elsewhere. I didn't even care if i was out the initial fees and the appraisal fees, but I was mad that I had to sell stock to pay down the loan on their recommendation and took a big financial hit on that. 10 months later, the manager that oversaw my loan, left BluFi, he called me (two weeks ago at my home, work and cell) to solicit my business to refinance with him and his new lending company. I am appalled by the lack of confidentiality with this branch, that my private and confidential contact information, walks out the door with ***** ******. I immediately emailed the branch manager of the Carlsbad branch, and apparently the branch manager information on their website is either incorrect or not updated, because that person is no longer at BluFi.

Desired Settlement: Resolution to their lack of document control of confidential information, not only for my sake but for future customers. Someone needs to be reprimanded for allowing this ***** ****** to walk away with my confidential client information.

Business Response:

Ms. *********,

BluFi Lending takes security of information as one of its highest priorities.  We have so many safeguards, policies, procedures, etc. that prevent and prohibit any theft of customer information and fraud of any kind.  We appreciate you bringing this to our attention and are currently pursuing legal action with this former employee.  Again BluFi Lending takes your complaint seriously and have taken maximum action. 

Thank you again for your time and information.

Sincerely,

****** ********

Vice President

Director of Human Resources and Compliance

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, 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 the response, but a letter assuring me, current and future Blu Fi clients that "systems in place" will protect my personal information from ID or information theft is not just unsatisfactory, but lacks action items of how this occured, what internal safeguards are audited and monitored to prevent this and to improve current protection systems/processes is a lack of reponsibility to the public.  Communicating that you are seeking legal action against the Blu Fi offender is no justification to me that your are truly pursuing this action nor addresses how my personal information was taken and used.

Regards,

****** *********

Business Response:

Ms *********, we are continued to working with you to resolve your concerns.  We have tried to reach you numerous times by phone to best assist you, If our messages have not reached you please contact me directly so that I may work with you directly. Thank you  ****** ********

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

4/18/2013 Billing/Collection Issues
4/3/2013 Delivery Issues
4/3/2013 Problems with Product/Service
4/3/2013 Billing/Collection Issues
4/3/2013 Advertising/Sales Issues
4/3/2013 Delivery Issues
3/27/2013 Problems with Product/Service
3/20/2013 Delivery Issues
3/20/2013 Guarantee/Warranty Issues
3/6/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Extremely bad service once loan was approved. I found a glaring error by BluFi where they double charged me hazard insurance. They acknowledged the error, but never fixed it and took out the extra fees from my refi charges. This is over $1000.This happened in November 2011 and now in February 2012 the issue is not resolved. I have contacted BluFi via email and telephone. The initial response was for me to work it out with my insurance company. I called my insurance company and they did not receive a double payment. BluFi sold the loan before my first payment.I then called and emailed BluFi nearly every week since December 2012 with no response. If the money is somewhere I would like to know. Also, BluFi did not inform the new load holder of my insurance payment and I received a letter that my insurance had expired. I fixed this quickly as it has been paid in an escrow account.Unprofessional, bad customer service and terrible quality control. I would not recommend this company to anyone at anytime. The opposite, given my experience I would discourage anyone from using their services (or lack thereof).

Desired Settlement: I would like BluFi to pay me the overpayment (double payment), which they have admitted in an email in November 2012.

Business Response:

Mr. ********,

We were able to assist you in contacting the escrow company regarding your payment and have confirmed the release of the payment from them to you.  The amount requested from the excrow company has been paid in full.  Please let me know if there is anything else we can help you with regarding your loan.

Thank you for bringing this to our attention and I am glad that we were able to assist you with your escrow company.

Sincerely,

****** ********

Vice President

Director of Human Resources and Compliance

Consumer Response:

Better Business Bureau:

The BBB come through for me and I applaud them. I had been trying to resolve my issue between November 2011 and February 2012. Once BBB assisted in my situation the resolution occurred quickly and was done correctly.   Thank you very much BBB.

Also, I want to thank the 'right' persons that were contacted within BluFi Lending, this made a huge difference and I give them credit to addressing the issue once it became know 'at their levels'.  Thank you too.

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution would be satisfactory to me. 

I consider this complaint resolved.

Regards,

***** ********

BBB's Final Determination: Consumer accepted resolution offered by the business.

3/5/2013 Problems with Product/Service
3/5/2013 Billing/Collection Issues
2/19/2013 Delivery Issues
2/16/2013 Problems with Product/Service
2/14/2013 Problems with Product/Service
2/4/2013 Billing/Collection Issues
1/27/2013 Problems with Product/Service
1/27/2013 Problems with Product/Service
1/23/2013 Problems with Product/Service
1/20/2013 Delivery Issues
1/20/2013 Problems with Product/Service
1/17/2013 Billing/Collection Issues
1/17/2013 Advertising/Sales Issues
1/9/2013 Delivery Issues
1/7/2013 Problems with Product/Service
1/4/2013 Problems with Product/Service
1/4/2013 Advertising/Sales Issues
1/4/2013 Delivery Issues
12/28/2012 Problems with Product/Service
12/12/2012 Problems with Product/Service
12/1/2012 Problems with Product/Service
11/21/2012 Problems with Product/Service
11/21/2012 Billing/Collection Issues
11/13/2012 Delivery Issues
11/3/2012 Billing/Collection Issues
11/3/2012 Billing/Collection Issues
10/27/2012 Advertising/Sales Issues
10/24/2012 Problems with Product/Service
10/24/2012 Problems with Product/Service
10/24/2012 Problems with Product/Service
10/21/2012 Billing/Collection Issues
10/14/2012 Problems with Product/Service
10/13/2012 Problems with Product/Service
10/1/2012 Delivery Issues
9/25/2012 Problems with Product/Service
9/15/2012 Problems with Product/Service
9/11/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: After completing 2 loans with Blufi Lending in 2011, we had without any contact or prior authorization, an appraisal ordered on our home and our credit card debited in March of 2012. I had to contact BFL and they then said that they were having a problem reselling our loan completed in Dec 2011 and that hey needed a new appraisal and a new loan to be completed by us. They told us the loan would be no cost and that it would be 1/8% lower. We agreed to this and they put the money taken from our credit card back. On April 11th we received the request from **** ****** (client Manager)for copies of our most recent financial data which we promptly returned, and a request for signatures on the "initial disclosures". It tok us one week to get these returned as there were many mistakes and incorrect facts that we felt uncomfortable signing. After emailing and phoning several times to **** ****** and ******* ******, our sales contact for this and the previous loan,we were told to just cross out the parts that were not factual and send them in which we did on April 17th. I sent an email and left a phone message for ******* ****** on April 24th asking if she had any idea on the loan closing date as I had to travel out of town. I received no reply. On may 3rd I found that my house insurance was overdue. BFL had my escrow money to pay this so I called up their loan servicing number to find out why. I was informed that our loan had been sold. I received official confirmation from the loan servicing dept. that our loan had been sold on May 8th. Still no reply from ******* ******. Summary We had an unauthorized CC transaction and Appraisal ordered months after completing our original loan. We were lied to or misled to gain our cooperation. We were treated with indifference and extremely poor communication. Mr **** ***** who apparently ordered this whole debacle refused to communicate directly with us. We have no confidence in BFL having the information they have on us.

Desired Settlement: Either complete the loan as promised or refund us the $5000.00 that the 1/8% reduction would have afforded us over the life of the loan. A written apology for being misled and for being ignored when convenient for BFL and then having them use our credit card and house as their personal domain when they so desired.

Business Response:

Mr *******

I have had the time to fully review your complaint with all parties involved on behalf of BluFi Lending. While we had offerred you a re-finance opportunity this was not in any way a guarantee to lend.  Various circumstances determine whether or not a loan will "close" including, qualifying, collateral, and time frame.  Loan guidelines change daily and so do interest rates, so timing is critical.  This loan could not be completed for a combination of the reasons above. 

While an appraisal fee may have been charged to your credit card, this fee was immediately returned to you so you incurred no additional cost.

BluFi offerred you a re-finance opportunity in good-faith we were not able to complete it, again for a combination of the above reasons.

I apologize for any miscommunication that may have occurred.

Sincerely,

****** ********

Vice President

Director, HR & Compliance

Consumer Response:

  The combination of reasons given for not being able to complete the promised loan are absolute baloney. The reasons stated (qualifying, collateral,time frame, loan guidelines and interest rates changing) are a poor excuse for being misled and lied to by a company that we had already completed two loans with the previous year and initially trusted. We have a great credit score, plenty of collateral,interest rates were dropping at the time, and we completed all of the paperwork required by us within a few days of the request for paperwork.

  BluFi lending initiated and requested this loan. We had no intention of refinancing for a third time within a year until BluFi lending contacted us in a discourteous manner and REQUESTED that we have another appraisal and a new loan. BluFi lending offered us an INCENTIVE of a lower rate and no costs to us loan, to have us comply with a new appraisal and a new loan. We did initially request this in writing but was told by ******* ****** that this was unnecessary as all would be stated in the new loan papers. Having been a two time customer of BluFi Lending we took her at her word. BluFi lending stopped communicating with us and did not reply to our requests of the status of the loan when it suited them.

  The statement that an appraisal fee was charged and then immediately returned is also baloney. We had not requested an appraisal as we were not looking to refinance yet again. BluFi lending used our credit card number they had on file from the loan completed in December 2011 and used it without even the courtesy of communicating with us first about it. This credit card fee was most definitely not returned immediately and several phone calls to BluFi Lending requesting the reason for the credit card "fee" went unanswered forcing me to call the credit card company to have them reverse the fee, some three weeks or so after being charged.

  If BluFi lending had offered this re-finance opportunity to us in good faith I would like to have the reasons defined as to exactly how we did not perform, and exactly what combination of reasons resulted in the loan not being "able" to be completed. We have all emails and phone calls with dates, corresponding to this poorly initiated and misleading failed transaction and if we did do something wrong on our end we would like to be appraised of it.

   BluFi Lending have acted poorly and discourteously at best and have been misleading and devious to one of their once happy and good two time customer. I feel that possible future clients of BluFi Lending should be appraised of their underhand and misleading dealings in this case. Even after you have completed a loan with BluFi you can still have problems with them.

  Sincerely

     ***** *******

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

Regards,

****** *******

 

Business Response:

Mr *******,

I have again had the opportunity to re-review your documents and have worked to get to a point where if you would again like us to try to work though your loan for 1/8 reduction as requested I will assign a Loan Officer to work with you to get this done.  If this is indeed what you want please let me know so that we can start this process while the rates will allow this offer to be a consideration.

Thank you,

 

****** ********

Vice President

Director Human Resources and Compliance

BBB's Final Determination: Business resolved the complaint issues, but not within BBB's timeframe. The complainant did not acknowledged acceptance to BBB.

8/29/2012 Problems with Product/Service
8/29/2012 Billing/Collection Issues
8/29/2012 Advertising/Sales Issues
8/22/2012 Problems with Product/Service
8/17/2012 Problems with Product/Service
7/31/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: We started a no cost refinance with BluFi Lending Corporation for a lower rate and lower payment on April 17, 2012. As of today we have not come to a resolution of our refund. Mistakes, lack of communication and careless attention to detail has made this experience with BluFi the worse we have ever had with any company. Our statements are from emails and phone conversations we had with BluFi employees. We were ensured by the BlueFi client manager that they would meet the lock expiration of May 16, 2012. They did not meet the lock expiration date. An appraisal fee was charged, and promised by our BluFi mortgage banker to be returned. We have not received the appraisal fee back. Our BluFi Client Manager that was assigned to handle our loan has a tremendous amount of careless attention to detail. For example: not paying attention to items we sent, loan documents, emails from us requesting information and giving her vital information. Also our client manager has lack of communication by not returning our phone calls, not keeping us updated, taking too many days to communicate loan issues. Our BluFi mortgage banker stated at the beginning of our refinance that we did not have to make the May and June payments. Our loan did not close on time and we found out ourselves we had to make the May house payment before a late fee. We ended up not signing loan documents with updated loan numbers, because our payoff was different. We received by mail final loan documents without our signature. The client manager did not communicate well with us, escrow and notary causing valuable days for our loan not closing before the expiration date. We are being charged extra interest and loan fees because Wells Fargo did not receive loan payoff on time. We are being charged appraisal fee that was suppose to be returned to us. We requested to speak to management and it has been 24 working days and as of today we have not talked to anyone in management. We tried calling and emailing, but no response.

Desired Settlement: To resolve the problem we want BluFi to return extra overlapping Wells Fargo interest, and other extra fees that were charged due to loan not closing on time. Lastly, return our appraisal fee.

Business Response:

Mr. and Mrs. *****,

I am sorry that your experience was less than positive with BluFi Lending.  I am happy to resolve your issues and hope that you will again consider us for any future kending needs.

Sincerely,

****** ********

Vice President

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

7/29/2012 Problems with Product/Service
7/24/2012 Billing/Collection Issues
6/27/2012 Billing/Collection Issues
6/16/2012 Billing/Collection Issues
6/15/2012 Problems with Product/Service
6/8/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I filed an application for a no-cost refinancing with BluFi Lending. The account representative, ******* ******, informed me that the "no-cost refi" had an up-front charge for the appraisal that would be refunded upon completion of the loan. While completing the initial paperwork, Ms ****** told me that the appraiser would be calling me to inspect the home in person and that I should have a carbon monoxide detector installed in the house because of CA state law. Failure to do so would result in a reappraisal fee. A week went by without a call from the appraiser. I then received an e-mail from ****** ****** indicating the appraisal had been completed and the results were attached. The appraiser had done a "drive by" appraisal and not an in person appraisal. Not only that, but the majority of the houses listed as "comparables" were either bank-owned properties or short sales. The appraiser valued my property at $445,000, which was $85,000 less than an appraisal by ** ****** ***** on the property a year earlier, and $50,000 less than the only equity property included in the comp set. Because the appraisal was absurdly low, I would not be able to refinance the home and the appraisal fee I had paid BluFi would not be refunded. I immediately complained to ****** ******. He replied that I could protest the appraisal by contacting my loan officer. I called Ms. ****** and she told me she would contact the appraiser and request a reconsideration. The appraiser denied her request, and at that time she mentioned the only option left was to reapply for an appraisal, but that BluFi, "would probably not want to do that" because they would have to pay for a second appraisal. I told her to please try, because I was very unsatisfied with the appraisal and was filing a complaint with the ********** ****** ** **** ****** ********** about the one that had been done. I did not receive another contact from Ms. ******.  A week later, I was sent a notice that my application had been rejected from BluFi.

Desired Settlement: Refund the appraisal fee I was charged. The appraisal I paid for in advance was not what I was promised. The appraisal was faulty. And BluFi did nothing to rectify the situation other than lip service.

Business Response:

Dear Mr ****-

I am sorry that the experience that you had with BluFi Lending was less than favorable.  We have agreed to your desired settlement request and I have made the request to have your reimbursement check cut and sent via *** ** this week.  As agreed, I will follow up with you on Friday, June 1st  to ensure that you have indeed received the appraisal reimbursement.  I hope you wil again consider BluFi Lending in the future.

Sincerely,

****** ********

Vice President, Director of Human Resources and Compliance

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

6/7/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: BluFi has not responded in the agreed time frame to the stated refund of fees paid in excess to the original agreed lender fees amount. I have numerous emails from Mr.**** *****  (mortgage banker) as to the amount of money I was to be refunded due to the difference/discrepancy of the original *** and the last *** stated lender fees amount. I was told this refund would be within two weeks and it has been over a month with no response from BluFi. Mr. ***** has stated that it "is being processed and should be there shortly", but that was more that a week ago and I have seen or heard nothing from BluFi. I would be more than happy to supply a copy of the several, very specific, agreements from Mr. ***** about the promised refund and time frame for said amount.

Desired Settlement: I only would like to have the promised refund amounts ($390, plus $710- total of $1,100) issued to me immediately. I have been more that patient about giving them enough time (double the promised time) and would like the refund checks and not another "it's on the way".

Business Response:

Dear Mr******

This e-mail confirms our series of conversations regarding your loan #*********.  We have determined that while we cannot “trace” the origination of the $1100 refund that was committed to you during your loan process, we will agree to reimburse you the remaining amount of $633.00.  The check will be cut today and sent via *** ** to your home address. If you have any further questions or concerns please do not hesitate to contact me directly.

 

Please reply to confirm your understanding/agreement and to acknowledge that we both now consider this issue closed.  I am truly sorry that your experience with BluFi Lending was not more positive and I do hope you will consider us in the future.

 

Sincerely,

****** ********

**** *********

Director of Human Resources and Compliance

BluFi Lending

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution would be satisfactory to me. I have received the refund amount due me.

Regards,

****** ******

BBB's Final Determination: Consumer accepted resolution offered by the business.

5/11/2012 Problems with Product/Service
5/9/2012 Problems with Product/Service
4/4/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Applied to refinance mortgage loan based on their advertised interest rate. Submitted all required paperwork. My house was appraised below the market value in the area. When I requested the written report of the appraisal and copy of my credit report which I was already charged by BluFi, they would not respond to any phone call or e-mail request I sent. I sent a supporting document to prove that the appraisal was below market value, compering to comparable house sold in the area. I also provided a copy of article that was published by *** ******* *****, value of houses in our zip code. They refuse to give us the name of the bank and the appraisal company they were dealing with. They request that we pay the difference of what is owed and their appraised value. I believe they were not conducting business in a good faith, trying to extort fund rom customers. I request that your office investigate how they conduct business and their extortion practice. It would protect future customers from waisting their money and time dealing with this compony if you would publish your findings.

Desired Settlement: Explaining the status of our application and posting the name of the bank and appraisal company they were dealing with.

Business Response:

March 21, 2012

Complaint ID # *******

Dear ******* *****,

I am the Vice President, Director of Human Resources and Compliance at BluFi Lending and am in receipt of a copy of your correspondence to the Better Business Bureau regarding the loan file you have in process with BluFi Lending.

You applied for a home loan refinance transaction as a “co-borrower” with BluFi Lending on 01-24-12.  ****** ***** is listed as the “primary borrower” and it was indicated at that time ****** is the main point of contact.  We were given his email address, listed as ***************; not the email address you have reflected in your email to the BBB.

At the time of your initial application and completion of your loan application you indicated the present market value of your home was 500,000.  We did our best to structure a loan around the particulars you provided “upfront” prior to verification of the information you and ****** ***** provided to us. However, your property did not appraise at the value that was indicated when you both completed your loan application with us.  (As a Mortgage Lender, we are regulated by HVCC regulations, and use a third party impartial approved appraisal panel. We do not have any in house appraisers.  Your appraisal was completed on 01/31/12 and we collected the fee that we were charged by appraiser at that time)

As part of our loan process, we sent out pre-disclosures to both of you for signatures.  One of the documents we provided to you is your “Credit Score Disclosure” which instructs our borrowers what their credit score is with each credit bureau we utilize, along with information on how to obtain a copy of their credit report.  We do not provide the report directly to you, as we do not charge you for it; we only charge for the property inspection report.  We also provided you with a “Notice of Right to Receive a Copy of Written Appraisal/Valuation”.  You did not indicate on the form by checking the applicable box on the form when/how/if you wanted to receive a copy of your appraisal. Until receiving the letter from the BBB, we were not aware you wanted a copy of your appraisal.

We are still showing that your loan is an open transaction with BluFi Lending, and hope we will be able to work on restructuring a loan program that could work for you and your property.

I am very sorry you are disappointed in the outcome of your appraisal. We have provided you a copy of this proposal since you have requested it through the BBB, and have also sent to you the back up documents that I have referenced in this letter.

Please let us know at your first opportunity how you both would like to proceed with your loan transaction with BluFi Lending.

Our goal is to always ensure that we provide honest and ethical service to all our customers.

Sincerely,

 

****** ********
Vice President

Director, Human Resources and Compliance
BluFi Lending

Consumer Response:

Please see below our reason and response to the company's representative:

 

Dear Ms. *******:

 Your March 21, 2012 letter that BluFi wan only given my e-mail address, ***************; while it is true I was the initiator of the correspondence, ******* was part of the process from the beginning. Her e-mail was made available from the start. She was included in the initial letter sent out on January 25, 2012 by Client manager ******* ******. She was ccd in the e-mails as early as January 27, 2012. ******* has also corresponded via telephone with ****** and Mortgage Banker **** ***** in the early stages of the loan process. Bottom line: YOU HAVE HAD BOTH E-MAILS FROM THE START.

The difficulties started when **** called me with the news of the appraisal and that I expressed my dismay at the way the appraiser DEVALUED our house’s value. **** stated he would e-mail me a copy of the appraisal. I told him we could not go with such low value for the house; **** said  he could challenge the appraisal and needed supporting documentation; I provided such documents and waited to hear from ****. He never did send the appraisal; and you indicated that we didn’t check off ‘we wish to receive a copy in the ‘Notice of Right to disclose; but it can be argued we didn’t check off ‘we wish to waive our Rights’ either. SO, WHERE DOES LEAVE US? Indeed I further requested in writing **** send me a copy and called and left a message to no avail. Further, I have talked with **** ****  (we have worked with him before, successfully I should add)about the lack of communication with **** and there was no progress. ******* has also called **** and left a message before we went ahead with the BBB correspondence.

Lastly, you say that our loan process is open! IT IS BECAUSE YOUR MORTGAGE BANKER, MR ***** HAS NOT DONE HIS WORK. WE TOLD HIM WE CANNOT ACCEPT A LOAN WERE WE HAVE TO DISH OUT MONEY OUT OF OUR POCKET. THE INITIAL OFFER WAS NO POINT  AT NO COST!!! HE COULD NOT DELIVER THAT AND DID NOT HAVE THE DECENCY  TO SAY IT AND DID A DISAPPEARING ACT.

We will still like to post our complain hoping to  prevent other applicants from experence what we went through with a company that does not practice fair business.  

Regards,

******* *****  

Business Response:

March 21, 2012

Complaint ID # *******

Dear ******* *****,

I am the Vice President, Director of Human Resources and Compliance at BluFi Lending and am in receipt of a copy of your correspondence to the Better Business Bureau regarding the loan file you have in process with BluFi Lending.

You applied for a home loan refinance transaction as a “co-borrower” with BluFi Lending on 01-24-12.  ****** ***** is listed as the “primary borrower” and it was indicated at that time ****** is the main point of contact.  We were given his email address, listed as ***************; not the email address you have reflected in your email to the BBB.

At the time of your initial application and completion of your loan application you indicated the present market value of your home was 500,000.  We did our best to structure a loan around the particulars you provided “upfront” prior to verification of the information you and ****** ***** provided to us. However, your property did not appraise at the value that was indicated when you both completed your loan application with us.  (As a Mortgage Lender, we are regulated by HVCC regulations, and use a third party impartial approved appraisal panel. We do not have any in house appraisers.  Your appraisal was completed on 01/31/12 and we collected the fee that we were charged by appraiser at that time)

As part of our loan process, we sent out pre-disclosures to both of you for signatures.  One of the documents we provided to you is your “Credit Score Disclosure” which instructs our borrowers what their credit score is with each credit bureau we utilize, along with information on how to obtain a copy of their credit report.  We do not provide the report directly to you, as we do not charge you for it; we only charge for the property inspection report.  We also provided you with a “Notice of Right to Receive a Copy of Written Appraisal/Valuation”.  You did not indicate on the form by checking the applicable box on the form when/how/if you wanted to receive a copy of your appraisal. Until receiving the letter from the BBB, we were not aware you wanted a copy of your appraisal.

We are still showing that your loan is an open transaction with BluFi Lending, and hope we will be able to work on restructuring a loan program that could work for you and your property.

I am very sorry you are disappointed in the outcome of your appraisal. We have provided you a copy of this proposal since you have requested it through the BBB, and have also sent to you the back up documents that I have referenced in this letter.

Please let us know at your first opportunity how you both would like to proceed with your loan transaction with BluFi Lending.

Our goal is to always ensure that we provide honest and ethical service to all our customers.

Sincerely,

 

****** ********
Vice President

Director, Human Resources and Compliance
BluFi Lending

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

3/19/2012 Problems with Product/Service
3/9/2012 Problems with Product/Service
2/14/2012 Problems with Product/Service
1/27/2012 Problems with Product/Service
1/16/2012 Billing/Collection Issues
1/6/2012 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: We were originally promised that we would not need to bring in any money at closing for our new loan. No money for closing costs, no money to set up impound account and no money for interim interest. They said we would get back all the money in our impound account and skip one mortgage payment. Nothing different was ever communicated to us until the final day of closing the loan. On that day we were told the only way to get the loan was to buy down the loan amount using our previous impound account which totaled $5933.39. Although this seemed unfair to us, we didn't want to go through the entire refinancing process again and were also told that this loan product was no longer available. We have been trying to resolve this complaint with the company directly for over a month. Please help us try to resolve this. Thank you.

Desired Settlement: We would like Blufi to refund us most, if not all, of our previous impound account that we needed to use to buy down the loan: $5933.39.

Business Response:

Per our VP of Sales:

"Loan was a streamline refinance high balance loan limits that were going away.  We issued a lender credit to cover all costs and pretty much all even reduced the principal amount of their mortgage in order to help them meet the 5% net tangible benefit requirement.  Their pay off demand amount was $725,621, we wrote our loan for $714,743 (a 10K plus principal balance reduction).  We even paid for the UPMIP refund in cash in order to help it qualify.  We issued a total of nearly $19,500 to close this loan.  We saved them $335 a month.  When we got to the closing table, they needed to bring in cash for the impound account.  Since we paid for the UFMIP, we could not change the loan to finance that, and apply the credit to cover the impounds instead as we would have needed to wait the 3 day rescission period and missed the cutoff to fund the High Balance loan.  They claimed they did not have the cash to close, so we conference called with their lender **** ** ******* to have them apply the escrow balance to the payoff to reduce the P/O amount to eliminate the borrower from coming out of pocket with the money needed to fund the new escrow account.

Because they expected to get that impound money back and not pay for the impound account creation to build into the new loan, they expected ***** to refund them all the money from their impound account that went to cover the new impound account. 

I had a lengthy discussion with this customer and explained the situation and thought we left it on agreeable and understandable terms, however, apparently that did not turn out to be the case.  After giving a credit of 19K, skipping a mortgage and saving them $335 a month, this customer still believes that we owe them this money?  I don’t get it".

We absolutely will not refund this borrower anything.  We have closed the borrower's loan as promised from day 1.  We cannot control what comes up from their existing loan prior to our refinance.  We cannot control how much they owe in principal and interest on the existing loan that our refinance will be paying off.  We cannot control how much is in their existing impound account with their existing lender.  Those items are 100% out of our control and are not known numbers at the beginning of any loan process. They are estimates.

Bottom line:  The Good Faith Estimate that was provided at the start of the process is exactly as the loan closed. 

Regards,

*** ********

Sr. Vice President 

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

They indicated that they thought they left this on agreeable and understandable terms. They caught my wife off guard by calling her at work and she wasn't in a position to discuss this matter. So I called and left them a voice mail and sent them an e-mail. I never received a response to either inquiry. I'm not sure how that can be perceived as being resolved.

We have never disputed that the product we received was indeed a great product, our complaint is that what was promised was not delivered. To reiterate what was sent to us initially by their company in an e-mail:

'You will not have to bring in any money at closing. No money for closing costs, no money to set up impound account and no money for interim interest. You will get back all money in your current impound account, 5518.51 right now. You will pay more into it next month as well and get that back. You will fund in September, and will skip October’s payment. So you will save 5275. You will accrue 5275 plus 5518 through the deal. 10,700.'

They indicate that they closed the loan as promised from day 1. Perhaps I am missing something, but that doesn't seem to be the case. We had to forfeit our impound account at the very last minute to have the loan go through and that is not what was promised from day 1 as is reflected in the previous quote.

They also indicated that 'The Good Faith Estimate that was provided at the start of the process is exactly as the loan closed'. The good faith estimate we received on 8/22/11 that we initially signed, and that I am attaching, had a loan amount of $720,684 which is what we thought our loan amount was going to be throughout this entire process. This is the only GFE we received prior to closing. Somewhere during this process someone at their company changed the loan amount to 714,743 for whatever reason. We were never made aware of this change. I am not sure what a 5% net tangible benefit requirement is and we never asked for a 10K plus principal balance reduction. So clearly the GFE that was provided is not exactly as the loan closed.

I have to say, we were a little surprised by the tone of the BBB response. We really had a great experience with our loan officer and we would like to recommend this company to family and friends because the process was relatively painless. We just can't understand where the breakdown is here. They are not willing to make things right. We were told that we would need no money at closing, that we would get back all the money in our impound account, but we had to forfeit our entire impound account. Is it not reasonable for us to expect the loan and terms that were initially explained and detailed out for us in writing during the loan process? They claim they are a transparent, responsible lender and that people matter, that certainly wasn't the case when it came to our transaction.

Regards,

****** ******** 

Business Response: There truly is nothing for us to make right.  Our closing costs and rate that we offered at the beginning of the transaction are the same as what we closed the loan.  The only difference that after underwriting the file, it was determined there was not enough financial benefit to do a streamline refinance thru FHA.  This is a HUD guideline.  In order the meet the requirement to have enough benefit, the borrower had to pay down their principal balance so that the monthly payment is lowered to provide the necessary benefit.  The extra money they had to pay went right back to them in the form of a lower balance. 

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

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