We cannot begin to express our disappointment with the behavior of our mortgage broker, William S. Lisk (aka Bill Lisk) D.B.A. American Home Equity (license number LMB [protected]). We have tried unsuccessfully to resolve the issue with him as he now refuses to return any phone calls regarding the situation, not even to offer us any sort of explanation.
Bill Lisk originally contacted us about our loan inquiry, through an internet search/request. We wanted to use the loan to complete a home remodel/addition. We were sorting through a variety of different loan options that had been presented to us by different brokers. We made it very clear that our priority was to have the best rate on a FIXED rate loan. Mr. Lisk told us about a loan which provided for a Home Equity Line of Credit that would allow us to lock the rate whenever we desired (once we completed necessary purchases). He told us that we could have four different locks at any given time and that the rate for each lock would simply just depend on what the prime was at the time that we request the lock. He told us that we had exceptional credit and that we would be given a discount margin of minus a quarter percent (-.25%). He said that there would be an initial introductory teaser rate of 4.99%, but that we would be able to lock the rate (which would be prime minus .25%), whenever we were ready. We asked if we could lock as soon as the loan closed and he then had to clarify that we needed to make at least one payment (30 days) before we could lock in the rate.
We discussed closing costs and appraisal fees. He provided us with a good faith estimate that clearly indicated that our FIXED rate would be prime minus .25%. We also have emails from him indicating the same. We agreed to the loan on the terms that he had quoted us. We paid for the appraisal and set the closing. When the closing agent telephoned me regarding the closing he indicated that we needed to wait at least 4 payments before we could lock. This was concerning to us because Mr. Lisk had originally discussed 1 month (or 1 payment). I called him to inquire about the discrepancy. He told me that the program kept changing and that it could possibly be 4 months now (instead of 1 month). He then assured me that he didn't think the prime would be changing any time soon and that it was still a great deal. We were a little nervous about not getting to lock the rate immediately (for fear of the prime rate rising during that 4 month time frame), but still agreed to close.
Now, after making the 4 required payments, I contacted Mr. Lisk to find out what the prime currently was - thus, we would easily be able to determine what my rate would be. He again confirmed during that phone call, that that was what the loan terms provided for. He then said that prime was currently 5.00% (thus meaning our lock in rate should be 4.75%), and even stated (again) to me, that our lock in rate would be 4.75%. We were thrilled that the prime had actually gone lower than when we closed on the loan and contacted the bank to tell them that we were ready to lock. Imagine our surprise when the bank told us that the rate for us to lock is 7.8%. I immediately told them that they must be mistaken. I asked to speak with the senior loan officer with Principal bank. She said she has never heard of a loan product that offered such a low lock in rate, and that the rate would be 7.8%. At no point, ever, did Mr. Lisk say anything even remotely close to this. We asked (no less than) several dozen times if the lock in rate would be prime minus .25%. Each time, he said "Yes". I immediately phoned Mr. Lisk to explain my confusion and concern. Now, although it was only a day since our last call (when I called to ask him if he knew what the prime rate was currently at), he began to have a sudden memory lapse and started back peddling, stating "Well, I close 20 loans a month, I cannot remember what I told you". I found that ironic, because just 24 hours before, he did clearly remember what he had told me all along. He then said that he would call "people" that he knew at Principal Bank, find out what was going on, and get right back to me. That was the last time that I spoke with him. He never called me back as promised. I have since left several phone calls, and he has refused to return all of them.
We have since had to file a complaint with the Colorado Division of Real Estate, and with the Better Business Bureau. Mr. Lisk has failed to reply to both inquiries from the Better Business Bureau. He has never offered an explanation or apology for any misunderstanding.
We have since had to pay additional fees get out of this inappropriate, misleading loan. Even after explaining the situation to the bank, we were still required to pay a $750 pre-payment penalty, in addition to the closing costs and fees paid to Mr. Lisk. We are now out a total of $2, 156.00 to remedy a situation that we would have never agreed to, had the terms been properly provided to us.
We feel that it is irrelevant whether Mr. Lisk was simply uneducated with the terms of the loan that he was selling to us, or he was simply telling us what we wanted to hear (to close the loan), the information that he gave us regarding the terms of the loan was deceptive, extremely misleading and very detrimental to us. The fact that he never called us to offer any explanation speaks volumes (to us) and we strongly recommend that anyone considering doing business with this person, consider the difficult position that we have been put into.
HELOC, Home Equity Loan, Home Equity Line of Credit, Denver, Colorado,