Suspected Individuals:******* ******* (NMLS # ******)**** ******* (NMLS # XXXXXX)MGM Lenders Inc.Issue: Mortgage Fraud and harassment with repeated lies for about two months with loan approval, signing loan doc and tried to sell higher mortgage rate.I applied for a 30 years fixed refi to the MGM Lenders on 12/17/2012. *** ******* was the contact. As per their request I spent $400 for the appraisal and the value came out to be way more (25% equity) than they needed to apply for the rate of 3.384. Weeks passed by and there was no contact from them. I got anxious as the rate was ticking up. On 01/17/2013 I asked on the status of the loan application. They told me the loan got approved and the notary should be calling towards end of the week. I even told them that I am getting a better rate (3.375) elsewhere and sent them the GFE. They repeatedly assured me and as I have already spent the money for the appraisal I stayed with them. But the notary did not call me. I called them the week after and they reassured me and told me the notary should be calling me anytime. That week also passed by and I got really worried by a letter, dated 01/21/2013, saying the bank declined my loan application. I called them again and they told me to disregard that letter as initially they applied to a different program and they assured me again that the loan is approved and bank is asking the appraiser for few more CO*** Another week passed by and there is no call from notary and rate went up way higher than what I could have got. Then I pressed them really hard and started calling every day about the loan. Finally they came back to me and offered me a way higher rate (~4%)! After being dejected I went with another broker, spent again for appraisal, extra $2000 to get the rate of 3.5.I asked *** ******* for my appraisal money back and why she cheated me, she mentioned it is not her fault and it is *** **** who should be called for.
After threatening to complain to FBI, finally *** **** replied to my emails and is giving all kind of excuses and trying to show it was my fault and finally offering me to sign the loan doc! What appears to me now that they tried to sell me a higher rate.I suffered financially, mentally and now worried about the security as they have all my information like SSN, bank statement, 401K etc. I like to get back the appraisal fee ($400), money spent to get the rate and removal of my information.
Our original telephone conversation with *** ***** happened on 10/27/2012. After 45 days, he called back and requested to get a quote from us. MGM Lenders emailed a proposal to him on 12/13/2012, that was a 30 year fixed loan program at 3.384% based on the information that were verbally received from him. He said that his mid credit Fico score was 745. *** ***** wanted to go on with the offer and we emailed him the initial disclosures accordingly. He signed the disclosures on 12/20/2012 and emailed them back to us. We pulled his credit before submitting to the lender and found out that his credit Fico score is lower than what he told us (717). He did not want to go higher on the rate and did not want to lock the rate either. Appraisal was ordered on 01/07/2013. *** ***** wanted to float the rate that he could get a lower interest rate. Even, he emailed us that he was working with another lender which was giving him $3,000 back (per his email) and wanted us to see if we could do better. The interest rates did not go lower than the day we emailed him the proposal. We got the complete loan approval and called him many times to advise him that the loan Docs were ready to sign. He rejected to sign. Interest rate on the loan Docs could not be the same as proposal as his Fico score was not the same but he could sign with a little higher rate. Even at this moment, he can sign the loan Docs with our Company at 3.59%. He said that he has been working with another lender as well and he does not want to sign the loan Docs with us. He said that either we had to pay him the appraisal fee back or he was going to say bad things about us to the authorities. He paid the Appraisal fee to an independent appraisal company through the lender and not to MGM Lenders and the Appraisal Company is not affiliated with our Company. He threatened to force us to pay him the Appraisal fee. Please see the attachments.
Should there be any question or concern, please do not hesitate to contact me.
All the Documents, emails, credit reports and disclosures are available upon request.
(The consumer indicated he/she DID NOT accept the response from the business.)
What kind of resopnse is this? They just segregated few emails of the whole conversation and did not address the issue at all. This is nothing but cheating. By the way I did send the initial disclosure by fax. If the disclosure was an issue how come they are offering me a loan now! This is an utter lie and trying to avoid the issue as usual. I am going to the Attorney General offie and FBI Mortgage Fraud department, if BBB does not have any authority to take any action.
Final Business Response
MGM Lenders has never charged any borrower for the Appraisal fee. Appraisal fee is paid to a 3rd party vendor by borrowers and is done through the lender in a form of a check, money order or credit card.
As you know the interest rates fluctuate every day and some times more than twice a day. When you have your loan float; interest rate can go higher or lower on daily basis until you lock the rate.
We offer 3.38% to *** ***** and he wanted to get a lower rate; he never requested to lock his rate as he was still shopping. Unfortunately the rates went up and we could offer 3.59% then. Now interest rates are lower and we can offer 3.49%. As you see, rates go up and down; no interest rate is guaranteed if you do not request to have your rate locked.
Appraisal' invoice is attached for your attention.
Please do not hesitate to contact me if there is any more question or concern and if any other more Documents needed.