Universal American Mortgage Company, LLC Mortgage Complaint

Universal American Mortgage Company, LLC Mortgage department,

VA mortgage Credit decision / Underwriting California

Our mortgage lender qualified us for a 5/1 ARM VA Jumbo 100 % financing loan at 3.125 % interest for $590000.00. On -/-/2015 we opened up escrow on a home. 12 days before our close date ( -/-/15 ) our mortgage lender contacted us via telephone to inform us that we have been approved for our loan ; however not the initial 5/1 ARM VA Jumbo loan- unless we were to put 25 % down of the difference from $410000.00 and our purchase price. Our lender stated that we are able to receive a fix rate 30 year mortgage at the interest rate of 3.875 % without any lender credit or an interest rate of 4.125 % with a $3500.00 credit. The reason the 5/1 ARM loan was denied after the underwriting approval is because of some kind of " overlay '' that the underwriter " missed ''. The reason for this " overlay '' is not associated with anything questionable in our finances, credit score, debt to income ratio or anything else on our end. I have contacted other lenders which all have informed me that our lender should have known this before we went into escrow. I feel that our lender used a bait and switch tactic to get us this far into the escrow process thinking that we would just go with a higher interest. The change in the interest rate would increase our monthly mortgage by at least $400.00 a month. I have asked if there is any way our lender could work out the current issue with us, but they gave no other options. One day after the previously mentioned complaint, we received a conditional loan approval for the product 5/1 ARM VA Jumbo 100 % financing at 3.125 % interest directly from the loan processor of the loan company in question. However, our loan officer still denies that we were ever approved for such loan terms.