City Mortgage Services ripoff Bait and switched a fixed 30 no penalty for variable prepay penalty San Diego California

I specifically requested a fixed rate 30 yr mortgage with no prepayment penalty. I was assured this was possible (many times) and that it was in the works. I received a "good faith estimate" stating the terms I requested.

I then received another "good faith estimate" directly from the lender that stated a 2yr variable rate with a prepayment penalty. This occured after we were 20 days in escrow. I confronted city mortgage and the broker told me to ignore the lenders good faith estimate and that hers was correct.

A week before close, I am told by the broker that she made a mistake on the computer and that she marked the fixed rate box instead of the variable rate box, but said there was no prepayment penalty. A few days before close, I find out there is a prepayment penalty and the good faith estimate sent by the lender was true to the letter. I had no choice but to accept or be in default to the seller.

This is truely criminal. They should all go to jail.

Ed
La Mesa, California
U.S.A.