Complaint #1523447 submitted on 08/18/2015 relating to Washington Federal. Complaint relates to Mortgage Conventional fixed mortgage - Loan servicing, payments, escrow account .
Complaint was submitted via Web and sent to the company on Tuesday 18th August 2015.
I took out a construction loan to be converted into fixed rate mortgage loan in XXXX XXXX. In XXXX XXXX, I received a letter from Washington Federal that my mortgage rate will be a fixed at 4.875 % for 30 years with a 1 % pre-payment penalty provision prior to XXXX XXXX. I sent them a letter explaining that I was offered, in open market, a 30-year-fixed-rate of 3.75 % -- and with XXXX-fees-or-costs.
When I signed the initial papers in XX/XX/XXXX I was told that the bank would be able to match market-rates for fixed-rate-mortgage in the future. But the bank refused to match the new rate, despite their initial verbal promises. I was left with a choice of paying nearly 1 % higher rate to Washington Federal for next 30 years to save the 1 % penalty, or paying 1 % penalty and saving 1 % yearly for next XXXX years, by refinancing elsewhere. The decision had to be immediate because the rates can change rapidly.
I had to pay 1 % penalty to Washington Federal to get a 1 % lower fixed-rate for XXXX years. This was completely unnecessary if they had followed through on their initial promise that they would match market rates for fixed rate mortgage to avoid refinancing.
| Company | Washington Federal |
| Complaint ID | 1523447 |
| Date Received | 08/18/2015 |
| Product | Mortgage Conventional fixed mortgage |
| Issue | Loan servicing, payments, escrow account |
| State/ZIP Code | WA 980XX |
| Consumer Consent | Consent provided |
| Company Public Response | Company chooses not to provide a public response |
| Company Response To Customer | Closed with explanation |
| Submitted | Web 08/18/2015 |
| Result | Timely Response: Yes, Consumer Disputed: Yes |
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