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Description

This company offers mortgage banker services.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Lenox Financial 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.

Reason for Rating

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

Factors that raised the rating for Lenox Financial Mortgage Corporation include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 6 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

6 complaints closed with BBB in last 3 years | 6 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 2
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 4
Total Closed Complaints 6

Customer Reviews Summary Read customer reviews

0 Customer Reviews on Lenox Financial Mortgage Corporation
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

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BBB file opened: Business started: 09/10/1999 in CA Business started locally: 09/10/1999 Business incorporated: 09/10/1999 in CA
Licensing

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

California Bureau of Real Estate
1651 Exposition Blvd, Sacramento CA 95815
http://bre.ca.gov/
Phone Number: 1 (877) 373-4542
Fax Number: (916) 263-8641
The license number is 01268086.

Type of Entity

Corporation

Business Management
Ms. Angelina Robertson, Vice President of Compliance & General Counsel
Contact Information
Principal: Ms. Angelina Robertson, Vice President of Compliance & General Counsel
Number of Employees

150

Business Category

Mortgage Bankers

Alternate Business Names
WesLend Financial
Industry Tips
Loan Modifications

Additional Locations

  • 200 Sandpointe Ave #800

    Santa Ana, CA 92707 (949) 428-5100 (888) 395-3669 (949) 428-5100

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Types of Complaints Handled by BBB

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  • Guarantee or Warranty

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Industry Tips

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Additional Phone Numbers

  • (888) 395-3669(Phone)
  • (949) 428-5100(Phone)
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Complaint Detail(s)

7/19/2014 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: Lenox advertises and offered in writing via email a "no-cost" loan. They specifically state that a refi "will not cost you a dime." When the loan closed there was an additional $3713.50 in fees (this does not include the property tax) in my refi and added to the loan balance.

Desired Settlement: I want the overage paid of 3,713.50 refunded to me.

Business Response:

February 26, 2014 

***** L. ******

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

********* **  *****

RE: Better Business Bureau Case#*******


Dear Mr. ******,

Please let this letter serve as Lenox Financial Mortgage Corporation’s (“Lenox”) response to your complaint with the Better Business Bureau posted February 26, 2014.  We have reviewed your complaint carefully and investigated your concerns.

Lenox received notification from the Better Business Bureau alleging that we failed to deliver as promised by our radio advertising for a no cost loan.  Please note the verbiage from our radio advertisement – “CHOOSING SUCH A LOAN COULD AFFECT YOUR INTEREST RATE AND YOU WILL BE RESPONSIBLE FOR ANY FOR ANY EXISTING LENDER PAYOFF FEES” In addition, our radio advertising states that not all loans apply.

After reviewing your loan file, we determine that the interest rate you selected on your loan was a fixed rate 3.75% rate with a 15 year loan term.  Your loan was locked on 11/08/2013.  The Lender Origination Credit for the rate and term you selected was $397.35, which was applied towards your overall closing costs.  Due to the rate being so low, there was not enough lender origination credits to cover all your closing costs.

           

I trust that this response properly addresses your concerns.  Should you have any additional questions or further concerns, please do not hesitate to contact Lenox. 


Thank you,


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

VP-Compliance

(949) 681-5349

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.

After reviewing your loan file, we determine that the interest rate you selected on your loan was a fixed rate 3.75% rate with a 15 year loan term.  Your loan was locked on 11/08/2013.  The Lender Origination Credit for the rate and term you selected was $397.35, which was applied towards your overall closing costs.  Due to the rate being so low, there was not enough lender origination credits to cover all your closing costs.

There is nothing stating that the rate effects the closing costs. In fact, the opposite is stated by your company agent *** ******** (quoted from our email below) when he claims if the rate falls lower throughout the process - there will still be no cost:

Hi *****, 

Here is the 15 yr amortization table to show $714 goes to principle. You currently put $264 approx to principle and $160 extra to equal $424 to principle and your payment is about $1600 month. Why not put $714 or an extra $290 to principle for FREE at the same payment of $1600. You also shave 9.5 yrs off the loan at a savings of $97248 after 15 yrs for free. If you move in 5 yrs you will have $290 x 60months or $17400 for free. 

Its my job to show the benefit and the math will show $290 more to equity for no-cost. I will get you to 3.5 if rates drop as we offer a float down for no cost too. 

Please respond back and I would be glad to finish up the application. 

Regards, 

*** ********

Business Response: Dear Mr. ******,

We are in receipt of your rebuttal to our initial response. I have carefuiiy reviewed your
file. I have also spoken to the Loan Officer and reviewed the e-mail communication
between you and this office. Below is a summary of my findings:

• The loan application was received. On 10/24/2013, the rate disclosed on both the
initial Good Faith Estimate and the initial loan application was 3.75% and an
estimated lender credit of $$3,020.00.

• The interest rate was locked at the request of the borrower on 11/08/2013. On
11/11/2013, a revised Good Faith Estimate was prepared showing the lock
expiration date of 1/7/2014, the locked interest of 3.75% and an origination credit
of $1 ,087.50.
• Due to delays in getting documentation back to process the loan, the time on the
rate lock ran out and we had to extend the expiration. A revised Good Faith
Estimate was sent to you on 1/8/2014 showing the origination credit reduced to
$652.50 due to the cost of the extension.
• The rate lock had to be extended again on 1/23/2014. A revised Good Faith
Estimate was sent to you on 1/24/2014 showing the origination credit reduced to
$391.50 due to the cost of the extension.
• The Company also provided you with a 3 day free extension at no cost.

The loan officer also sent you a preliminary Settlement Statement prior to your loan
closing which disclosed to you the origination charges on your loan. I've attached a
copy of the Settlement Statement sent to you for your file

The e-mail you are quoting in your rebuttal is inconclusive. We cannot determine when
this email occurred. The e-mail is quoting a 3.50% rate which is not the rate you applied
for (see your signed initial loan application). The offer of a float down was dependent on
rates going down.

Please provide us with the entire e-mail, including any attachments and we will be happy
to re-review.

Our advertising is very clear. The rate you select will directly affect the lender's
origination credit. The rate you selected was one of our lowest rates.

Should you have any additional questions or further concerns, please do not hesitate to
contact Lenox.

Thank You,

***** *******
VP-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.

Per your request here is the complete email from your agent:

Hi *****, 

Here is the 15 yr amortization table to show $714 goes to principle. You currently put $264 approx to principle and $160 extra to equal $424 to principle and your payment is about $1600 month. Why not put $714 or an extra $290 to principle for FREE at the same payment of $1600. You also shave 9.5 yrs off the loan at a savings of $97248 after 15 yrs for free. If you move in 5 yrs you will have $290 x 60months or $17400 for free. 

Its my job to show the benefit and the math will show $290 more to equity for no-cost. I will get you to 3.5 if rates drop as we offer a float down for no cost too. 

Please respond back and I would be glad to finish up the application. 

Regards, 

*** ********

Mortgage Consultant | NMLS ID # 67571 |   Lenox Financial Mortgage Corp. dba Weslend Financial

toll free 888.945.4105  ext **** | direct ************| fax ************ | email  ************@lenoxhomeloans.com


Again there is no mention of additional cost including paying to extend rate locks. Any delays should have been anticipated by you our your representatives and not the burden of the borrower since I promptly returned all requested paperwork. These costs should not be passed on to the borrower.

Regards,

***** ******

Business Response: RE: Better Business Bureau Case #*******

Dear Mr. ******,

We are in receipt of your message in which you indicate that the second response to your complaint by
Lenox Financial Mortgage Corporation ("Lenox") dated March 14, 2014 ("Lenox Response #2") does not
resolve your complaint. I have carefully reviewed the prior Lenox responses dated February 26, 2014
and March 14, 2014, along with the supporting documentation provided in the responses and the loan
file.

Additionally, I reviewed your complaint, responses and the email you quoted in your rebuttal. The email
quote you provided did not state the date that the email was sent, and thus, it was not clear as to when
the information was sent to you. I was able to locate the email you quoted in your rebuttal and it is
attached. The email is dated October 17, 2013 which is prior to your application being taken and clearly
states that the offer of a float down was dependent on rates going down.

As stated in the Lenox Response #2, although the email stated that the Loan Officer would try to get
your rate down to 3.5% it was contingent on rates going down. Your initial application and disclosures
(provided in Lenox Response #2) verify that you applied for a fixed rate of 3.75% which included an
estimated lender credit of $3,020.00. At that point the rate was not locked in but was floating.
Subsequently, the rate was locked on November 8, 2013 at an interest rate of 3.75%, with an expiration
date of January 7, 2014 and an origination credit of $1,087.50. You were provided with disclosures
dated November 11, 2013 which disclosed the rate lock information and the reduction in the origination
credit (provided in Lenox Response #2), which is indicative of rates increasing since the lender
origination credit was reduced.

Due to delays in providing us with the documentation required to process and close the loan, the time
on the rate lock ran out and a rate extension was required. Revised disclosures were provided which
informed you of the change, indicated the new expiration date and a further reduction in the origination
credit (provided in Lenox Response #2). After the first extension, the rate lock expired once again and
additional disclosures were provided to you along with a new expiration date and another reduction in
the origination credit (provided in Lenox Response #2).

Therefore, you were provided with four sets of disclosures (provided in Lenox Response #2) informing
you of the reduction in the origination credit. Additionally, prior to your loan closing the Loan Officer
sent you a preliminary Settlement Statement which disclosed to you the origination charges on your
loan (provided in Lenox Response #2). At any point during the loan process you were able to discuss any
questions or concerns with the Loan Officer or even cancel your loan if not satisfied. Furthermore,
under federal law, in a refinance transaction the lender is obligated to inform borrowers that they have
a three day right to cancel after the signing of the final loan documents which provides borrowers with
an additional opportunity to review their loan documents, inquire further and even instructs them how
to cancel the loan with no cost to the borrower during that timeframe. The Right to Cancel Notice was
provided in your closing loan document package.

Lenox maintains its stance that it fully disclosed any changes to your loan during the loan process as
required.

Should you have any additional questions or further concerns, please feel free to contact Lenox.

VP -Compliance/General Counsel
(949) 681-5349

cc: Better Business Bureau

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 detailed review of the process. My only remaining concern is as follows:

-If the rate increase was caused by losing the rate lock, why am I responsible for the increase? I was very responsive in meeting the requests for additional paperwork throughout the process. If they dropped the ball, why was I penalized (the cost passed on to me)?

Regards,

***** ******

BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable effort to address the complaint. However the consumer remains dissatisfied.

9/25/2013 Problems with Product/Service
8/27/2013 Problems with Product/Service
8/23/2013 Problems with Product/Service
8/16/2013 Problems with Product/Service
8/12/2013 Advertising/Sales Issues
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