Complain about a product or service

Merrill Lynch Mortgage

Please note the company's response to this complaint.

Helen of Bozeman MT writes (4/1/02):
On April 7th I spoke with my Financial Advisor at Merrill Lynch regarding refinancing my home with them in the amount of $379,800. He referred me to their Credit Corp. After filling out a application form over the phone I was told it looked "good". I explained that I was self employed and that my income on tax returns would be low (giving him the exact figures for the last 2 yrs), but that the equity in the home was strong and my cash position with Merrill Lynch in the consults program was over $160,000.

Over the next several weeks an appraisal was done on my home and a credit report was run. I again spoke with Ben and locked in on an interest only 3 year loan at 5.1% and paid a lock in fee of 1% ($3,789.00). Ben asked for a credit card to bill the fee to.

I received 2 phone calls, one from Ben, one from Albert, my financial advisor, saying I was approved. The home appraised at $650,000. The credit report was excellent. We were going to close asap. On March 25th (over a month after I locked in) I phoned Annie (loan consultant) and asked when we would close. This was the 3rd call placed to her asking for a closing date.

On this date, 3/25/02 she tells me, oh, you're not approved. I asked why? She first said it was because of a loan in my business name for $75,000 which was showing as a second mortgage (we had already had this conversation, she even requested information from that bank in regard to the loan, and it was not a problem early on in the loan process). When I explained to her that that issue was resolved, she then said the reason was because of my income. When I explained to her that I had given all income information, both verbal and tax returns sent over night, to them early in the application process and was told that's not a problem she then had nothing more to say to me. I told her I wanted the lock in fee that was charged to my credit card credited asap. She said fine and we hung up.

To date, 4/01/02 I have not received the credit. I was never sent anything, no application copy, no estimate of closing cost, no good faith in lending booklet. Merrill Lynch Credit Corp gave me 2 verbal approval phone calls, had my homeowners insurance policy changed to show them as the new lender, charged my credit card for lock in fees, had my home appraised. This seems as though they approved me.

I believe that Merrill Lynch Credit Corp violated RESPA laws (not sending me an estimate in closing), Truth in lending Act, much emotional distress to me, financial distress ($3,789.00).

They had all my information from day one. There were no surprises from me, I gave them all information. The only information that they did not have (and could not ask for) was my marital status. Only after I sent them hard copies of my tax returns would they know that I was single. Could this be the reason for the sudden refusal? Did they lock me in at too low a rate and realize it later, hence finding other reasons to not approve me? I have since closed all accounts with Merrill Lynch and am still waiting for my credit.

The company responds:

This is in response to the posting of a complaint with the heading "Merrill Lynch Mortgage" from Helen of Bozeman MT written April 1, 2002.

After careful review, Merrill Lynch Credit Corporation (MLCC) was able to determine that Helen of Bozeman, MT, was actually from Bozeman, Maryland, and had applied for, but was turned down, for a mortgage loan with MLCC. Privacy laws prevent MLCC from disclosing the specifics of her application. We regret that Helen was disappointed with this transaction, but after additional further review, we were able to conclude that:

• MLCC complied with applicable state and federal laws; and
• MLCC responded promptly to Helen's complaint to the Maryland Division of Financial Regulation; and
• All fees were refunded to Helen even though MLCC had no legal obligation to do so and notwithstanding that it incurred expenses during the application process.

MLCC is committed to operate under the principle of "Respect for the Individual" and conducts its business with the highest degree of integrity. We take pride in delivering excellent mortgage solutions to our clients.

ConsumerAffairs.com incorrectly identified Helen as being from Bozeman, Montana rather than Bozeman, Maryland. This made it much more difficult for Merrill Lynch to locate the appropriate file. We appreciate their diligence and understanding.

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