Complaint Review: Nationwide Discount Home Loans

On January 4, 2007, I completed a refinance of my property. Before closing, I read the reams of fine print and noticed that it was stated that the rates could change after the first month. I questioned the agent, Kevin Butler and he assured me "the interest only option, is not affected, you are locked in to the rate quoted (2%)." Via a previous email, he quoted me prices $2581 for the interest only premium. The loan also stipulated a three year prepaymetn penalty which I went along with since I was getting an affordable rate.Then the loan was immediately sold to Countrywide and my premium increased by $1,000/month. The interest only premium was not listed on the coupon for that first month so I was unaware of the increase; therefore I was unable to rescind the contract in the first three days so I was stuck.

I have tried to work this out with Natiowide's owner, Andrew Whitaker, but his stall tactics lasted long enough where refinancing was not a sensible option. I have formally complaind to the Dept. of Real Estate and the Better Business Bureau in his area. He offered another loan also with a three year prepayment penalty which was tied to the stock market but then rescinded the offer because the Mortgage Industry was in big trouble. Both my wife and I have taken on two jobs each to maintain our financial lives.

NWDHl uses Tony Robbins tapes (ethical and customer service guru) while on hold which sucks customers in, thinking they are dealing with an ethical firm. Nothing could be further from the truth.

Tom dee
Napa, California
U.S.A.