| 10/06/2021 |
Yes |
- Mortgage
- Conventional home mortgage
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Web |
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Megastar Financial increased our closing costs {$1300.00} from the final Loan Estimate to the Closing Disclosure, without justification. We believe the Loan Estimate was knowingly false, and would like this to be remedied.
Background : We were shopping 3 different lenders in this home buying process.
1. After we signed a purchase agreement XX/XX/XXXX, Megastar sent us a new loan estimate with an increased {$4500.00} in closing costs from previous estimates.
- We said no - Discussions continued with Megastar and other lenders 2. On XX/XX/XXXX, Megastar offered to lower closing costs by {$1200.00} ( rates had moved ). We locked in a rate with them and gave the go ahead.
3. XX/XX/XXXX we received a new final loan estimate from Megastar confirming these fees and costs. ( Everything great! ) 4. XXXX XXXX XXXX, zero further communication on closing costs with Megastar 5. XX/XX/XXXX, Friday evening we received the Closing Disclosure, with a request to sign it by midnight in order to keep the early close on track - Buried in the closing disclosure was a {$1300.00} closing cost increase - back up to the level we rejected on XX/XX/XXXX - The cost categories had changed, there was now a much larger escrow requirement ( from 5 to 7 months ) and loan title insurance had increased 40 % - Closing disclosure also stated we had shopped around for title insurance, which we did not.
6. From XX/XX/XXXX to XX/XX/XXXX, Megastar was unresponsive, rude, and dismissive when we asked about these increases. Unfortunately, we had no choice but to close with them or lose the home.
7. On XX/XX/XXXX, getting nowhere with our Megastar rep, we reached out to their branch manager via their website. Response was continued obfuscation and incorrect information.
8. On XX/XX/XXXX at the closing table, we were surprised by yet another Closing Disclosure dated XX/XX/XXXX, which addressed none of the concerns and contained the same inaccuracies as the XX/XX/XXXX disclosure.
In summary : Attached XX/XX/28 and XXXX disclosures show the {$1300.00} increase in closing costs.
-- We locked in our rate XX/XX/XXXX -- XX/XX/XXXX disclosure, closing costs of {$14000.00} -- XX/XX/XXXX disclosure, closing costs of {$15000.00} primarily two items changed substantially : Lender title insurance increased {$300.00} ( 40 % increase ) -- We went with Megastar 's title company, and did not shop for this service.
-- Megastar 's business is mortgage loans, and they know what title insurance costs on a {$400000.00} loan. The loan costs provided to us were very misleading.
Property tax escrow increased {$1300.00} ( 40 % increase ) -- Every estimate and disclosure from Megastar, going back to XXXX and including the post-rate lock disclosure of XX/XX/XXXX, showed 5 months of escrow -- We were not informed of any increased escrow requirements at any time, or the potential for any increased escrow requirements.
-- Closing disclosure on XXXX increased the escrow to 7 months.
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| 07/13/2017 |
No |
- Mortgage
- Reverse mortgage
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- Applying for a mortgage or refinancing an existing mortgage
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Web |
Older American |
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To begin with I am a senior citizen I am XXXX years old .At the end or about the end of XXXX XXXX I contacted XXXX XXXX at Megastar financial. I gave this gentleman all the information he requested i.e. IRS forms, bank statements, copies of my checks from my job and he sent them to his underwriter ... he came back telling the realtor and me that there are no red flags and I have no reason to not sell my home and I can look for a home between XXXX and XXXX. This was five months ago my home did not sell until XXXX XXXX. My current Realtor was also given the go ahead to find a home for {$380000.00} I am looking in XXXX, California ... we looked at in at least 15 to 20 homes I found one about XXXX XXXX for {$380000.00}, I still have the the escrow papers, and put down my {$3000.00} earnest money. The house was an escrow for about a week or so and then XXXX came back and said I 'm sorry you ca n't get the home because the taxes are too high so I Lost the house. Then XXXX tells my realtor and I that he has to do over the numbers again ... then he gave me a quote of XXXX to buy a house ... XXXX you ca n't buy a house at XXXX in XXXX that is a {$50000.00} difference .... if I had known this I would not have sold my house so he virtually left me homeless because he did not tell me in XXXX what the actual price of the home would be I could buy!!!!!! he waited until after my home was sold and I had no place to go!!! Again I had given him All the information he requested by XXXX and it went through his underwriters and he still came back with a quote of XXXX ... .he waited until after my house was sold then he told me you ca n't buy the house I told you you could. XXXX XXXX left me homeless and I have my son XXXX dogs XXXX cats and a bird a bunny and a snake so he 's leaving my animals homeless as well. He 's causing grave emotional, mental, and financial abuse to myself and my son and animal abuse to my animals because we are homeless right now. This is also possibly senior abuse since I am almost XXXX. My house is sold and I have to move out on the XXXX I have no place to go and I and I have not enough money to buy a home because XXXX did not do his job correctly he lied to me and the Realtor 's for 5 months ... Iwould not have sold my home if I knew all this information in XXXX so for five months myself, my son, and the Realtor 's ( more than one three realtors ) were under the God-given impression that I could buy a home for {$380000.00} .and after my home was sold he changed his tune ... ... .I am left homeless. I would like Megastar financial to finance the loan for a {$380000.00} home just as they said XXXX months earlier before I sold my house instead of waiting till after my house was sold and leaving my son my animals and myself homeless
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| 05/18/2020 |
Yes |
- Mortgage
- Conventional home mortgage
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- Applying for a mortgage or refinancing an existing mortgage
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Web |
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I was provided with contact information for XXXX XXXX XXXX a lender at MegaStar Financial Corp. by a realtor with the best of intentions. When I got in contact with Mr XXXX one of the first things he advised me to do was pay off my debt including a {$15000.00} vehicle loan. This is a substantial amount of money for me at any time but especially now because Im currently furloughed due to COVID-19. I felt a genuine unease not only because Im a first time home buyer but because my mental ability for making decisions has been severely compromised due to XXXX both of which require me to rely heavily on people who are supposed to be professionals. I proceeded with Mr XXXX advice and after paying off all but my car, which I was still reluctant to do, I contacted him to let him know the progress. The first thing he said was what about the vehicle? It was obvious that Mr XXXX wanted me to pay off my car. After I did what he advised I contacted him once again to let him know. It was at this point that Mr XXXX informed me that I was ineligible for a loan at this time due to the furlough. A fact Mr XXXX had neglected to inform me of prior to paying off the vehicle. If he had informed me I would not have had a reason to proceeded in paying off my car loan at this time. My lease is up on my apartment next month and I dont have a house or the {$15000.00} I will need for a place to live and to fund my education over the summer. Im less than 60 days away from being homeless. Advising a furloughed restaurant server with limited funds in the middle of a pandemic to pay off a {$15000.00} car loan is not only incompetent it is negligent. In his follow up call Mr XXXX actually used his own lack of debt as some kind of standard because like he said he only pays cash for his cars. Mr XXXX is a working banker and I am an out of work waiter, his comparison only further proves the incompetence. There is however something called an ethical standard. {$15000.00} may not be a lot of money to him or anyone reading this but it is to me. The distress this has placed on me is borderline fatal at this point.
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| 11/25/2021 |
Yes |
- Mortgage
- Conventional home mortgage
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- Trouble during payment process
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Web |
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On XX/XX/2021 an unauthorized automatic payment was taken out by the company. As this payment was an excess they applied it to the following month. Upon the discovery of this unauthorized payment, I called Megastar to complaint of this payment. I was told they could not reverse the charge but would need to issue a check. I was issued a check for XXXX ( The amount of the unauthorized payment. ) I was not paid the overdraft fees that I was charge for debits that came out when I was not aware of this payment.
On XX/XX/XXXX I cashed the check for XXXX that Megastar sent. I received a notice from my credit union 1 week later that the check had a stop payment. I was assessed a XXXX dollar stop payment fee.
I called Megastar 's customer service number and was told that they had no record of the stop payment and asked for me to send in the credit union notice. This notice was submitted to Megastar.
They continue to say that the check was cashed even thou they have the letter from the credit union showing the payment had a stop payment. The escalation 's department said they were looking into it as the credit union letter shows they stopped payment but their cash office says the check was cashed.
I contacted the corp. office and was told it was a problem with the payment process company they contract with and they kept telling them that the check was cashed. The corp office could see the submitted letter from the credit union showing stop payment and fee attached for the stop payment that i was assessed.
I have been told many times from the customer service department that a supervisor would call me to talk about this but none will call.
We are approaching 4 months since this happened and we are no closer to resolving this dispute and the megastar financial corp office says it is the problem the payment processor needs to fix, however they should be responsible for the payment as the loan server.
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| 05/24/2023 |
No |
- Mortgage
- Conventional home mortgage
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Web |
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When closing on our house we were told we could " buy back '' interest rate points to get the interest rate back down to our original quotes. The rate was supposed to be 2.75 % but we ended up at 2.875 %. The cost to purchase those points back was around {$1200.00} I believe and the breakeven ended up being about every 6 years. I texted XXXX XXXX at XXXX XXXX XXXX XX/XX/XXXX about having that ability to buy back those points and expressed that we wanted to do that. On XX/XX/XXXX I expressed it again that we would like to buy those mortgage points back and he said he was going to hold off on making any changes until an amendment was finalized for the sellers paying more at closing. This went on a few times with various calls/texts/emails. Coming up to closing I asked again, when we could buy them back but he said it was now too late and we could no longer do that. XXXX let this fall through the cracks even after multiple attempts to purchase these points back. I believe this will cost us $ XXXX over the length of the loan not including the loss of interest we could have acquired with that money. He later expressed it wasn't a good idea to buy them back anyway unless we planned on staying in the house for over 6 or 8 years, which we obviously do plan on doing.
The Loan Officer is XXXX XXXX. Property Address is XXXX XXXX XXXX, XXXX MN XXXX. Closed XX/XX/XXXX. XXXX XXXX {$350000.00} and loan amount of {$330000.00}.
Loan Officer Megastar Financial XXXX ( XXXX ) XXXX XXXX XXXX : # XXXX
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| 01/24/2021 |
Yes |
- Mortgage
- Conventional home mortgage
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- Trouble during payment process
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Web |
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I submitted a form to MegaStar in XXXX to have biweekly automatic drafts taken out of my account. In mid XXXX, I received a letter confirming the set-up, but my bank account number was typed wrong. They had changed a 2 to a 7. I called to get this fixed the same day. The people on the phone said I couldn't change it on the phone, that I needed to send in a new document. I immediately logged into the website and went to chat. I told the person in chat what was wrong. He had me upload the corrected form ( I typed it this time rather than handwritten ). He said he would send it to the payment people immediately and it would be fixed. The first time the draft was supposed to come out of my bank in XXXX, it didn't happen and I received a letter saying NSF had occurred, I chatted with the company again that day. I asked if they would remove the NSF, they said they couldn't, but had me upload another drafting form to fix the problem again. I was reassured the problem was fixed and the first draft would be on the XXXX. This has gone back and forth several time with me mailing copies of the chats and new draft forms to the company. I was hung up on at least once. Now, I received notice that the NSFs number 3 and I am no longer allowed to make any form of payment other than certified check or money order. I have never been late with my mortgage. It has always been paid ahead due to the need to be ahead prior to a draft.
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| 07/11/2018 |
No |
- Mortgage
- Conventional home mortgage
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- Trouble during payment process
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Web |
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The mortgage company is claiming I didn't make the payment. My bank shows payment was made and provided a confirmation number.
This is what the lender said : Good afternoon Ms. XXXX, As we discussed on the phone, we have not seen your first loan payment.
I can see on my system that the first payment of {$1300.00} was due on XX/XX/XXXX. I can also see that the first payment actually belongs to Megastar. Subsequent payments beginning XX/XX/2018 belong to XXXX XXXX.
At this hour I do not see that we have received your first payment. I have copied Ms. XXXX XXXX on this email. She is very familiar with depositing receipts. She will be able to confirm when we receive your check and how your check will be applied to your loan.
In the event your payment is for more than the required payment of {$1300.00} we will forward the excess funds to XXXX XXXX, referencing their loan number XXXX.
As I said on the phone, we are real good at receiving, depositing and allocating our deposits. XXXX will reach out to you tomorrow to confirm the above and provide us with more information.
Your attention to your loan is appreciated.
XXXX XXXX XXXX Assistant Controller MegaStar Holdings XXXX XXXX XXXX XXXX, CO XXXX Direct : XXXX Main : XXXX XXXX XXXX
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| 10/29/2020 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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XX/XX/29 spent 1.5 hours on phone with loan service company trying to resolve. This company has put me on a restricted payment status with no missed monthly payments. All that I requested is to be able to pay online and to have no restricted payment demands imposed on me. While on hold with company I spoke to three representatives and was transferred multiple times having to explain the situation each time. When transferred to supervisor I was given a voicemail inbox. If the company successfully imposes certified check demands on me the cost of certified checks is {$8.00} each which effectively makes my loan {$2800.00} more expensive over the life of the loan. I am also on XXXX XXXX and was never given warning of restricted payment status where I can only pay by certified check. This company is literally making my life so difficult all while on XXXX XXXX in an already stressful environment. Because of this companys inability to resolve this problem I will be submitting CFPB complaints daily until this company is responsive.
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| 04/20/2016 |
No |
- Mortgage
- Conventional fixed mortgage
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- Loan servicing, payments, escrow account
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Web |
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My mortgage company Megastar Financial changed their billing address, and in the process they also changed my account number. I had been using an Automatic Draft Payment option, which somehow did not get transferred. I never received notice that I had an intermittent payment due, but I did get phone calls Megastar Agents on numerous occasions ( even after I had fixed the problem. ) Then, when I tried to adjust my account numbers, the steps were numerous and cumbersome, and resetting the Auto Draft program was delayed. This delay also happened without Megastar notifying me, until an agent called and threatened me with a Collection Agency. The worst part was that she could even see that I had Auto Draft set up, but that it was n't activated yet.
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| 03/18/2021 |
Yes |
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- Struggling to pay mortgage
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Web |
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My loss mitigation application has been on going since last year. I submit them an application and they keep on asking documents which I have been explaining that we don't have those documents like business tax returns, profit and loss statement etc. Keep telling them that the business closed since 2018 which is the reason of hardship. this is the third time sending them application because they keep closing them due to missing documents. My application is not moving forward and not going anywhere because they keep asking the same documents. I dont think they would like to help me save my house at all. They are making the issue worse instead of helping me.
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| 03/19/2020 |
Yes |
- Mortgage
- Conventional home mortgage
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- Applying for a mortgage or refinancing an existing mortgage
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Web |
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Tried to refinance at 3 or 3 1/8 % for a 30 year fixed the last two weeks or so ( from week of XX/XX/XXXX through XX/XX/XXXX ). Was unable to get a call from broker until too late to lock in. This is a mortgage industry problem that affects financial lives. The industry should be able to accommodate borrowers who want a rate- all borrowers who want a rate, or none of them. The industry needs to be fixed. The dates and details are not important. Nothing happened after I sent the company an email describing the problem on XX/XX/20.
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| 10/28/2020 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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XXXX paid additional principal I have to call in to verify that principle was paid.
XXXX paid additional principal, mortgage company received money and returned the payment.
XXXX paid additional principal, company did not decrease mortgage balance. Balance remained the same.
XXXX paid additional principal, principal balance not reduced, payment applied to a suspense account.
I am NMLS licensed XXXX and this company fails at any form of servicing competency.
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| 10/30/2020 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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XX/XX/2020 I emailed company and demanded them to open onetime payment portal for my use. Company has not opened portal and is demanding payment only by certified check. Im on XXXX XXXX status with the Army and have to leave post in order to purchase a check to mail for payment. My schedule does not allow time to do this. Servicing company gave no warning on being restricted to payment by certified check only.
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| 10/30/2020 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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I have spoken to customer service in regards to unlocking my account to allow payments through the one time payment portal. Today I spent a long time on hold only to be transferred to a full voice mail. This company is forcing me to pay my mortgage by certified check without notice and or justification.
This company will ignore that you exist and will make it clear that you are of no value and or concern.
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| 03/23/2021 |
Yes |
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- Struggling to pay mortgage
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Web |
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So we have been dealing with this difficult lender Megastar Financial. they also have difficult reps. I called today and spoke to these reps XXXX id number : XXXX XXXX id number : XXXX. These reps refused to discuss the account and got hang up twice and put us on hold forever and even transferred me to XXXX speaking representative just to get away. That is so rude and very unhelpful.
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| 10/28/2020 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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Megastar has a one time payment option on website and company has denied my access to link with no warning. I was also put on a payment by certified check with no warning by the company.
Im on XXXX XXXX with the military and the stress that this causes me is unbelievable.
I will be submitting a daily CFPB complaint until this company resolved.
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| 03/18/2021 |
Yes |
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- Trouble during payment process
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Web |
Servicemember |
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Megastar Financial fails to host and maintain a functional website that allows customers to pay their mortgage on time or even at all. The website puts end user into loop where you can attempt to reset password and it works. Then after login it fails to recognize the user. This company is a failure.
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| 07/19/2023 |
Yes |
- Mortgage
- Conventional home mortgage
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Web |
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| 04/06/2022 |
Yes |
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- Trouble during payment process
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Phone |
Older American, Servicemember |
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| 07/29/2021 |
Yes |
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Web |
Older American |
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| 08/07/2013 |
No |
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- Application, originator, mortgage broker
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Phone |
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| 01/22/2013 |
Yes |
- Mortgage
- Conventional fixed mortgage
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- Loan servicing, payments, escrow account
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Web |
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