Complaint / review text:
I applied for a Chase mortgage loan at end of July 2011 based on the fact that they had no closing fees except for the application and processing fee. Chase provided all the fees that I would have to pay in a Good Faith Estimate and so I decided to get my loan from Chase since I have been a customer of Chase for over 10 years.
However, on the day of closing, as I was signing the paperwork, I noticed that there were additional closing fees of about $1,400 that I was not made aware of prior to Closing. The bank's attorney, who was also in that room, was not aware of the fee. I had asked what the fee was about, but the bank attorney couldn't tell me. At this point, I couldn't sign the papers. Otherwise, I would have lost out on my 10% down payment on the apartment unit.
The following Monday after the “closing, ” I called the loan officer from whom I had gotten the mortgage to ask what the fee was about. He explained to me that the fee was due to the fact that Chase had to extend my lock-in rate for the third time so to meet the closing date. He told me that the lock-in rate had expired on Oct. 12 (we closed on Oct. 14 — a date that everyone including Chase was aware of for weeks!) and thus, they had to extend the rate by 2 additional day since I wasn't ready to close. I found this to be surprising since I told him that this couldn't be right because, on Oct. 12 at 2 pm, the loan was still in Chase underwriting and the reason for the initial delay of the closing was due to the fact that Chase had actually sent my loan file to the wrong bank attorney on Oct. 5th! I explained to the loan officer that 1) the loan-rate extension was not my fault and was the bank's fault, 2) I never authorized or agreed to such an extension—I even asked the loan officer to produce a proof that I actually signed a document substantiating this claim that I agreed to the third extension, but he couldn't and 3) the delay in closing that gave rise to the extension was due to the bank's fault (not mine) because my file was sent to the wrong bank attorney and due to chase's own incompetence.
I tried to resolve this amicably several times and even went through Chase's Executive Resolution Center, but to be expected, they sided with the loan officer. They refused to speak to my attorney and the loan officer and his immediate supervisor refused to return my calls. While it is not a big sum of money, it is the principle that Chase was effectively holding my loan "hostage" unless I agreed to the additional closing costs that were never ever agreed upon or disclosed to me prior to signing. This seems to be an illegal and fraudulent practice. From the complaints on this website, it seems to be quite pervasive too. There may be potential class action lawsuits of Chase slipping in hidden fees at the last minute to home owners.