I contacted Flagship Financial Group in July 2012 about an IRRRL VA Refinance Loan after receiving a letter in the mail from them. They sent me paperwork to fill out and I started the process for refinancing. They sent me a Good Faith Loan Work-up about 2 weeks later. 3 weeks went by and I received a package in the mail with my Loan papers inside for me to review. These numbers were completely different then what was sent in the Good Faith Estimate Worksheet.
I called my Loan officer Matt who assured me that all the paperwork was just routine and that there could be some mistakes in the forms but not worry as this happens sometimes. 2 more weeks went by and I received more paperwork, even more wrong this time. They had wrong pay-off information, duplicate fees, etc... Had me paying $14K in fees for a refinance on $300K. He again assured me there were computation issues and they would be fixed by closing. I asked for a HUD-1 at that time and he said he would send it to me. He also sent me an email outlining how I would received $7600 back at closing $3600 towards two mortgage payments and $3600 as he put it in his email to pay bills or such. All this if I mortgaged $338K versus $330K. If I chose no money back it would be $330K towards $324K I owed and $6K in fees.
When Notary showed up to sign paperwork, everything was different again. This time it showed me getting $500 back, showed me paying $5500 in originator fees which is illegal because it is more then the 1% allowed by VA. Also showed my payoff information was wrong. First mortgage payment due in 3 weeks, no missed payments as promised. Showed me paying extra fees I should not be paying. Also had fees not disclosed in GFE, which is illegal. I called Matt and he immediately refered me to someone else. This person kept saying I was getting a deal.
In essence, The paperwork they provided wanted me to pay $338K for a $324K loan. They had $14K in fees they said I should pay. I was getting $3800 back only because they had wrong payoff information and my original lender would send me the overage payment back. I was getting $1400 back from an escrow I already paid. So in other words I was only getting money back I had already paid that was due to me anyways. Still did not explain the $14K in fees they were charging. Talking to the reps at Flagship is like talking to a bad used car sales man. I am sure they are all not crooked there but the personnel I was dealing with truely are.
I have currently contacted VA and I am seeking to find out what if anything legally can be done to prevent this from happening to other VETS. It pretty bad when you put your life on the line for everyones freedom and security only to have a company like this try to pull the rug out from underneith you and rob you blind. Just goes to show you how crooked some companies can be or at least the employees they employ can be.