Guaranteed Rate Promised one thing Chicago, Illinois

I used the LendingTree website to get quotes from different lenders. The rep. from Guaranteed Rate contacted me right away, she was persuasive and courteous. I have started the application and promptly received the package to sign after I have committed to work with them by paying for the appraisal and locking the rate.   In two weeks the rates started going up substantially and the work on my loan mysteriously slowed down.   The loan officer started to behave very differently. First she asked me for additional papers “because they cannot tell if it is HELOC or a fixed rate mortgage”.  I promptly faxed them all the additional papers. Then she sat on my papers, w/o any communications and explanations.  After my multiple emails and phone calls she responded that they need additional appraisal. After all the promised deadlines have passed it turned out that the additional appraisal needed additional work and “they are going back and forth with the desk”. I started to become really concerned about the expiration of the rate lock but was told that the lock will be extended. Then I was told that the additional work needs to be done due to the desk review. Finally I was told that all the issues were resolved and my application is ready for closing; however, there is a small change--  the guaranteed locked rate cannot be extended.  The new rate is more than 0.5% higher than the locked one. It was classic Bait and Switch operation: promise one rate in order to draw customers and then switch the customer to a higher rate “due to circumstances not under our control”.   They think that customer will stick with them after spending all the time and money.   I've applied for more than 10 loans in the past 15 years - this is by far the worst experience I've had!  

In September2010, when interest rates were very low, I was curious about refinancing my current mortgage which is a 30yr 5.25% fixed.I was not intending to take cash out.I inputted the information but never followed up and the next day Anthony Cummuta called me at my work.He ran some numbers and he said that I could get a 20yr fixed @ 4.25% and pay what Im paying now since I include additional principal payments.

I assembled the information within a 48hr period in order tocomplete the refi application and he said everything was in order.He asked for my credit card number to arrange the appraisal.

Questions and answers went back and forth regarding personal info on the loan application but there was no word on status and closing schedule.October came and still no word about closing and I was wondering whether the rate was still good.I sent email.More than 30 days had already passed. He apologized saying he was in hospital with pneumonia.He sent me the appraisal and it indicated the value as more than 3 times the amount that I was looking to refinance.

Then silence.November came, I sent another email inquiring about status and whether the rate was still good and he said there were corporate red flags and they want to know why my drivers license showed a Annapolis address.I explained that I have never had a DC drivers license because of insurance rates, I own a weekend property in Annapolis and I use that on my license and my car is registered with my siblings address in Maryland.He deemed my explanation as a good one and then more silence even though I sent emails and left vmails.

December came.Rates were going up from their lows in September and I was suspicious and asked and pleaded for information. He gave excuses, said he would get back to me and never did.When we finally talked well into December, he said my refi application was flagged for fraud.I was incensed and accused the company of screwing up and was looking to back away from the commitment and accused them of being fraudulent.I asked what the basis was, the address on my drivers license?

He had his supervisor call me and I told his VP or so he claimed that I deal with bankers and asked for their opinion about what I was experiencing with GuaranteedRate brokers and it was laughable.I told his supervisor that its obvious what happened, that if Anthony Cummuta was sick that no one followed up with the file and that they screwed up my application.There was no communication or transparency.He didnt admit any fault, and then wanted to know if I was still interested in refinancing and I said I had a 5.25% fixed rate and published rates were already above this in mid December.

I can live with my current mortgage and can pay it off early if I want so I have other options but if I was in a more dire straight, I would have been totally screwed by these bozos.This outfit or their brokers are a joke, totally unprofessional and have no idea about servicing customer.Be careful with faceless on-line companies thinking that they care about the customer.This one doesnt and they just make excuses.

Steve, Washington District of Columbia