USAA Savings Mortgage Complaint

USAA Savings Mortgage department,

Conventional fixed mortgage Application, originator, mortgage broker California

The mortgage company changed the loan terms to a more expensive loan well after it was aware of the change in circumstance that they allege necessitated the change. It seems they implemented a fraudulent bait-and-switch. After shopping around for loans, we went with this particular company because of they offered loan with a lower interest rate and a substantial lender credit. Apparently this loan was based on the property we were purchasing being a town home - as opposed to a condo. When we initially spoke with the loan officer, we noted that we did not know if the property was a town home or condo, and that we did n't even know the legal difference. The loan officer went with a town home when generating the loan estimate, without letting us know that the loan would be significantly worse if the property is a condo. It is noteworthy that the loan officer was viewing the property listing and the listing indicated the home is a condo. Thus, the loan office should have known the correct type of property at this time.


did not compare the revised loan with the original loan. ) The loan company said that this change was due to finding out from the appraisal report that the property is actually a condo. However, the appraisal report was sent to and reviewed by the loan company 10 days before they sent us the revised loan estimate. This clearly violates the Consumer Protection Rules that any revised loan estimate having such a large change be provided to the buyer within three days of the " changed circumstance '' that triggered the change. We attempted many times to resolve this issue with the loan company, but they would never work with us and instead tried blaming us for the error, claiming we told them the property was a town home, which we did not. This process seemed to us to be a fraudulent bait-and-switch, where the loan company promised us favorable terms to effectively bait us in, and then switch to a less favorable loan when we were well through the process, knowing that we would have a very difficult time switching to a different loan at that time.