Complain about a product or service

E*Trade Mortgage

Olga of Las Vegas NV (10/10/02)
I negotiated a mortgage refinance with Etrade Mortgage and received closing cost estimates (consistent with the information on their Website). The closing costs were to be $1792. Upon signing the closing documents, and after the customary 3-day grace period, I was called and told that I still owed $1150 beyond the $1792 indicated on my closing cost statement.

My loan processor, Clayton N, as well as Amy J, his supervisor, admitted that the error was on the part of Etrade, but I was still forced to come up with the remaining, required funds. The explanation was that some costs were not reflected to offset any credits. I explained to her that both my loan processor and loan consultant spent at least 1 hour each going over the original closing numbers, and I was assured the amount I owed E-Trade would only vary by about $50. There appears to be a lack of proper quality assurance at E-Trade as I feel those numbers were not checked by the loan consultant, not checked by the loan processor and lastly not checked by anyone during the "grace period."

I would not have refinanced my mortgage based on the now, modified closing statement numbers. Ms. J compared the error to a typographical omission, and that I was liable for the balance of money owed. She also admitted that it would have been near impossible for me to have discovered the inconsistency between the closing cost statement and the correct signed documents. Although I believe Ms. J made a genuine effort to ease the final cost to me, she was only able to lower the amount to $900 and I have since submitted this amount to Etrade, fearing legal action. During closing I had provided a $500 pad at closing for possible discrepancies, but I was now forced to pay an additional $900. Thus, I paid $1400 beyond the original estimate.

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