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Home Finance of America / Last minute hidden fees you can't avoid

1 United States Review updated:
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BEWARE!

Home Finance Of America will hit you surprising fees days before closing date so you will not have chance to back out.

I decided to go with (HFA) after shopping for a mortgage for our new home. Rates looked better and good faith estimate looked good. In addition to my primary loan I needed to take bridge loan which would cover me for a month or so before I would sell my existing house. I was planning to close it immediately after that. I verified number of time that this second loan would not have prepayment penalties. Just 4 days before closing Joe send me email which states that terms for the second loan have changed and there is prepayment penalties for the second load for 120 days in the amount of 5% of the loan! I was stunned and had no way of working it out. It was all blamed on "Investor" and they did not even change it from 120 days to 90.

But that's not it!

HFA has excellent float down option on the rate locking. Since our purchase process was longer then usual due to seller delaying closing my rate has expired and I called to set another float down rate before locking. Joe was out and his colleague open new float down rate for me which was better than previous. After that rates went down and week before closing I called to lock my rate. Joe H. told me that while he was on vacation the colleague locked me without float down option. And he told me than there is he could do!

People, BEWARE of Home Finance of America's unfair practices - even though they seem to be very nice and professional they will get you eventually when you will not have chance to change anything.

Eventually I got rate higher than I was anticipating and most importantly they I will have to pay 3 month worth of payments just because they introduced ridicules prepayment penalties on my second loan.

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Comments

An
  15th of Nov, 2007
Agree Disagree 0 Votes

I was going to go with this bank but after few calls got the feeling that something is fishy about this company. Closing costs changed every time I called.

Ji
  6th of Mar, 2008
Agree Disagree 0 Votes

I had a great experience with them. Lowest rate. Clsoed in 10 dAYS, NO PROBLEMS, rEFINANCED WITHG 3 OTHER COMPANIES. Home Finance was the best.

An
  6th of Mar, 2008
Agree Disagree 0 Votes

All my frineds used Home Finance and loved them so I used them as well. They WERE great. Realy nice Loan oFficer named Fran. The Reduced my rate when rates went down. I didn't even ask them to. I recommend every I know to them and they also were very happy. I would use them again.

Ja
  9th of Mar, 2008
Agree Disagree 0 Votes

Yes, I actually work for a bank and was going to refinance my house with them until I came accross Home Finance of America. At first it did look to Good to be true but they actually had 1/4% lower than my bank with the discount they offered. I closed at 6% when my own employer had 6.25%. Home FInance closed my in ten days. They were fine and I actually recommend my staff to them. All have had nothing bust nice things to say.

Pa
  21st of Mar, 2008
Agree Disagree 0 Votes

do not want this service please stop chargin my account

Ji
  25th of Mar, 2008
Agree Disagree 0 Votes

Yeah those last two comments were bs because the guy Fran they were talking about is the sales manager so I know he rarely presents himself as a "loan officer." Sounds like current management trying to salavage their reputation to fight all these negative comments. STAY AWAY FROM HOME FINANCE OF AMERICA OR YOU WILL REGRET IT!

To
  26th of Mar, 2008
Agree Disagree 0 Votes

It should also be noted that the owner of this company does also own a couple of businesses in the real estate field such as an appraising company. So when you keep hearing people say that they were stuck paying an apprasing fee but didnt get their loan...well you get the picture.

Fr
  26th of Mar, 2008
Agree Disagree 0 Votes

This place is a total mess. People that answer the phones at this place are munching on chips, doing their nails and still trying to get a loan out of you. This company resells your loan to companies that end up screwing you. the upfront fees are a joke. If you ask to speak to management with a concern, you will simply be placed into voicemail and never responded to. just try it for yourself, go ahead! employees at this company take your info and then sell it to other companies. It has happened to me. I put in my info on the website and then 20 other places call you later. It is a fraud! Stay away from this place!!!

Mi
  26th of Mar, 2008
Agree Disagree 0 Votes

The same thing actually happened to me once. They called me back after I submitted something online and after hearing their rates and fees which seemed suspicious to me I said no thanks. Within a week I was getting calls all day and night from other business and lenders. It turns out that some employees were making extra money on the side selling leads to competitors. This company really is completely unethical and I am glad to see other victims voicing their opinions on this horrible place. LETS KEEP IT UP!

Mi
  15th of Apr, 2008
Agree Disagree 0 Votes

HOME FINANCE NEEDS TO GO. Their owner is a complete dirtbag creep and their management is the biggest joke around. They have incompetent loan officers who are completely clueless and are of no help when the ### hits the fan when it comes to dire situations. I would never reccomend this company to anybody it is poorly ran and YOU WILL REGRET IT!!!

Mi
  20th of May, 2008
Agree Disagree 0 Votes

Has anyone noticed that immediately after I or just about anybody else writes a negative comment about the company a positive one comes up. Folks, I used to work here and I know that they do look up on these site and put in false statements. I know from the inside that home finance is a despicable company and should be put out of business. The upper management is utterly incompetent and the company does not even institute a structured training program and place new employees on their floor unprepared. Money is made off of application fees and other upfront fees that are NON-REFUNDABLE. My experience was that so many loan applications would build up to the point where all control was lost and was told to just "toss" the ones that wouldn't not generate a high enough profit. What would happen then is that family would have their rate lock-in expire and most times would give up on home finance or unfortunately would not be able to close on their house. You can only imagine that anguish that would cause. I also saw another employee sell personal information to an outside source. When the ### finally hit the fan management intervened but it was the worst kept secret for the longest time their. I would suggest if you have a major issue to go straight to goverment agency or threated legal action. Management folds very fast once those things are mentioned. Complaining straight to management will fall on deaf ears. We were specifically instructed that if we received any phone calls from customers for management that we could only put them into voice mail and not surprisingly calls were never returned. Go straight to higher authorities if you have truly been scorned by this company. I cannot say it enough people Home Finance is a TERRIBLE COMPANY. Please do yourself a favor and spare the aggravation and AVOID. Also, for the many people who have been screwed by home finance please let your stories be known. It would only be fair to the other people here and a great way to get back at this company for all the wrong they have caused.

Ch
  2nd of Jun, 2008
Agree Disagree 0 Votes

thanks god I was able to read all those complaints before making any loan decisions.

Sh
  2nd of Jun, 2008
Agree Disagree 0 Votes

I'm sure glad I decided to check home finance out on this site. I was going to contact them and begin the process. THANKS MIKE!

De
  10th of Jun, 2008
Agree Disagree 0 Votes

Have any of you been burned by Home Finance offering a lower rate or less points to buy to that rate than others, like Countrywide, then finding that Home Finance wasn't telling the truth? Please tell your story for the rest of us so we know. Thanks!

Mi
  13th of Jun, 2008
Agree Disagree 0 Votes

Not a problem Sherrill and Chloe...and Del...lets keep it up!

Ph
  28th of Jul, 2008
Agree Disagree 0 Votes

Home Finance of America...Beware of the hidden and last minute fees not listed on the Good Faith Estimate. I was ripped off by this company to the tune of approximately $1200 in hidden and bogus fees. They charged me .25 of a point to NOT Escrow when I stated on the first day I did NOT want to Escrow. No mention of a charge for NOT escrowing was divulged until the day before closing. In my closing package they included temporary payment slips to Country Wide where my loan had been assigned. I made my payment as directed and approximately a week later I received notification in the mail from JP Morgan Chase bank that my loan had been assigned to them by Home Finance of America. Home Finance of America never notified me that there was a change from what was included in my closing package. Luckily my check to Country Wide had not processed and I was able to put a Stop Payment on the check for a $32.00 fee at the bank. I have faxed all my information detailing the stop payment charges to Linda Deuber, my loan officer, at Home Finance of America. I requested reimbursement of $50.00 to cover the Stop Payment Fee & my time & trouble to correct their error. It has been a week and I have not gotten any reply from them.

The best advice I can give is Don’t waist your time or money with this company.
They advertise low rates but kill you in hidden fees that get you at the last minute when it is to late.

Mi
  12th of Aug, 2008
Agree Disagree 0 Votes

Phil,

I'm sorry that had to happen to you. I can tell you first hand that the good faith estimates are useless to this company. They provide employees with outdated forms and never fully instruct the major differences per state for a proper good faith estimate.

As for the complaints well I know for a fact that instructions for complaints to upper management are sent to voicemail and they do not respond. I would suggest going to the better business bureau or a higher authority to seek your reimbursement. YOU WILL NOT GET IT BACK FROM HOME FINANCE!

This is a terrible company and all the complaints are very true.

Be
  10th of Feb, 2009
Agree Disagree 0 Votes

This is the first complaint I have ever posted: I'm in total agreement with the negative comments regarding Home Finance of America. I had a "total lender fee of $2, 350". Then a Good Faith Estimate (they are not good or done in good faith) for $2, 465 where the cost went up due to interest. Then we spoke on the phone on January 23 at about 3:45 where I told Linda A. Deegan-Deuber, the person I was working with at HFA, that I wanted to use my own attorney to which I was not disabused of this idea. Then they added in an additional cost, a penalty, for not escrow-ing my taxes and insurance with them. Then I got a revised Good Faith Estimate where they added in their own attorney fees. The email exchanges that followed were comical Linda avoiding my questions about attorney fees and which attorney was to be compensated, mine or theirs. This is a wily, unscrupulous, dishonest bunch of people and they still have my "nonreturnable" deposit of $350. Linda continually insisted we talk on the phone, the one time that I did resulted in misrepresentation of our discussion and obliteration of same from her memory. If one is, sorry, but dumb enough to want to conduct business with HFA, I do not recommend that you talk on the phone but conduct any dealings with them by email. I have called my attorney and they will be handling this, I don't care if it costs me 20 times my deposit amount - their business practices are the kind of predatory behavior that have brought us into a recession, lost people their homes and put families on the street- in my experience they are untrustworthy, dishonest, unscrupulous. I will be speaking with the Better Business Bureau, my congressman, a friend in the Boston Globe etc. Any one interested in a class action law suit?

Mi
  19th of Feb, 2009
Agree Disagree 0 Votes

Ben,

This is great to see. Well not great to see that you are going through this and I'm sorry for that.

I can tell you that Home Finance is a joke and you watch know you already threatened the Better Business Bureau and they become very scared of that. I remember somebody else did that and they refunded everything immediately.

What they are doing is making money on these non-refundable fees. There is no employee training whatsoever and they have employees who are not licensed in certain states forge signatures to process as many application fees as possible. They are the only company who charges an upfront "application fee" and they also slip in that appraisal fee.

The Good Faith Estimates are outdated and pointless and don't take in to effect of state taxes. It's really sad how this continues to happen and really hope the best for you Ben in what you need to do.

Cc
  7th of Mar, 2009
Agree Disagree 0 Votes

As a former employee I can tell you that the bulk of the problem with this company is the training program. They give you materials to read, stick you in a room to read them, and then come back and ask if you have any questions. The problems snow ball from here. When the "loan officers" give out good faith estimates and miss any adjustments (ie escrow waiver) the underwriters ( who are nothing short of mindless ###s..I know because I lost loans because of them that should have gone through) pick up on it and then the loan has to be modified. The owner is laughable. Fake tan exotic car-driving gold chain blinging dork. The company is legit and does offer loans that do go through but more often then not there is a problem which causes the loans not to close. Everyone do yourself a favor and just deal with a real mortgage company. The .125 pt you may save by going here is not worth it

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