Product: Mortgage

On XX/XX/XXXX, I emailed in response to a refinance offer sent to me by my current mortgage servicer, KeyBank. On XX/XX/XXXX, I received an email response from XXXX  XXXX XXXX XXXX. After several emails to discuss refinance rates, projected mortgage payments, etc., I asked for information on proceeding with the refinance on XX/XX/XXXX. We scheduled a telephone meeting on XX/XX/XXXX to discuss my options regarding the loan. I expressed interest on XX/XX/XXXX and on XX/XX/XXXX, XXXX and I had another phone conversation to lock in the rate that was quoted to me during our conversation, and a {$500.00} lock-in fee was paid. I submitted the requested documentation to start the process. I should note that, during the time that I was in contact with XXXX XXXX, every phone call that he placed to my number somehow never rang directly to my phone, but rather went to my voicemail, where he would leave a message. On several instances, I called XXXX XXXX and was not able to reach him to discuss time-sensitive issues ; but he would respond via email to say that he was on another call or unable to answer my call. I was emailed by XXXX XXXX on XX/XX/XXXX to say that all documents had been received. On XX/XX/XXXX, the appraisal was completed. I was not contacted again by KeyBank until XX/XX/XXXX. 

On XX/XX/XXXX, I received an email from XXXX XXXX to request information about my student loan payments, and I responded with that information on XX/XX/XXXX. I did not receive a response from XXXX XXXX after XX/XX/XXXX. On XX/XX/XXXX, I received a call from XXXX XXXX XXXX, requesting a call back. I called the number and learned that the company was a third-party verifier, hired by KeyBank, whose role was to call my student loan servicers on a conference call with me so that I could give permission to speak to the loan servicers so that they could verify loan status, monthly payment and the amount of the loan. I received an email from Key Bank hours after speaking with XXXX XXXX XXXX  ; this email was to notify me that I would receive a call from XXXX 

I received an email on XXXX the bank portal requesting upload of my student loan documents. On XX/XX/XXXX, I emailed XXXX XXXX, the XXXX XXXX, XXXX XXXX, and XXXX XXXX ( who had been copied on recent correspondence from XXXX XXXX XXXX to ask that any time-sensitive items that were needed be followed up with a telephone call, because I didn't want to miss any correspondence to prevent delay of the refinance. I received a bounced email from XXXX XXXX, stating that the email address was not found in the KeyBank system. I learned that day, by process of elimination, that XXXX was no longer employed by KeyBank, and XXXX XXXX was my new XXXX XXXX. At no time did XXXX XXXX contact me to tell me what her role was in this process. In fact, XXXX did not message me at all, prior to my message requesting a telephone call. 

On XX/XX/XXXX, I emailed XXXX XXXX to inquire about the status of my appraisal, as I had received the appraisal report the week before ; my home was appraised for {$190000.00}. For reference, I purchased my home for {$190000.00} in XX/XX/XXXX. XXXX replied later that day to say that the appraisal came in below their expected value, and a restructure was needed. Shortly after that email, XXXX stated that there was no room to roll the closing costs into the loan, and a funds verification would be needed to ensure that I could close on the loan. I expressed my frustration about the matter, which included the length of time for the refinance process and the lack of communication from KeyBank. I requested to speak to someone regarding the matter, and I was told that I could schedule a time to speak the next day. 

On XX/XX/XXXX, I reached out to KeyBank 's corporate offices to speak to someone who could give more information about the situation and I was contacted by XXXX XXXX, who identified himself as XXXX 's XXXX. I explained the situation to XXXX, who stated that he would check on the matter and call me on XX/XX/XXXX or XXXX with an update. I did not receive a call on either day, and I called XXXX at his office on XXXX. XXXX stated to me that he did not call back because he did not have an answer for me yet. At the close of the call, XXXX stated that he would call me the following day once he had more information. 

On XX/XX/XXXX, XXXX XXXX called back to say that the appraisal was accepted in XX/XX/XXXX, which was the cause of the delay. At that time, I was told by XXXX XXXX that my loan application was submitted with an estimated home value of {$270000.00}. At no point during my conversations with XXXX XXXX, the original XXXX XXXX, did I tell him that this was the estimated value of my home. I continued to voice my frustrations with XXXX XXXX, and I asked what would become of the lock-in fee that I paid at the start of this process. I was told that if the refinance could not be completed, the fee would be refunded to me. 

During discussions with XXXX XXXX regarding the appraisal of my home ; I also expressed my frustrations that my home had only accumulated {$9000.00} in equity in two years, when there were several homes in my community comparable to mine, which had sold for more than {$250000.00} within the last 6 months. The home next door to mine, which is smaller than mine, sold for {$200000.00} less than a year ago, and my home appraised for less. I was told by XXXX XXXX, by way of the appraisal department, that there was no need for me to dispute the appraisal, because the comparables were not going to change ; because I didn't have many amenities/upgrades to my home, such as a fireplace, there would be no room to increase the appraisal. Also, the comparables were also given a lower value because of items such as the seller providing a portion of closing cost to the buyer. If I wanted to close the loan, I would need to provide the {$6000.00} at closing. 

On XX/XX/XXXX, I was contacted again by XXXX XXXX with an update on the loan. Due to the age of the application, I would need to supply additional documents for income verification ( pay stubs and W2s from XXXX ). I would also need to pay private mortgage insurance on a new loan, where I do not currently pay PMI. When I spoke to XXXX that same day regarding the terms of the refinance, I explained that I did not currently pay PMI. I was asked by XXXX XXXX " Are you sure? ". After almost four months into this process, my XXXX XXXX had no idea what the terms were on my current mortgage, which is held with the same bank. 

On XX/XX/XXXX, I called and explained to XXXX XXXX that, due to the frustration I had with the process of this refinance, and the request for the full closing costs, I wanted to cancel the refinance application and was requesting a return of my lock-in fees. XXXX stated his understanding and said that he would escalate my concern and request the refund. On XX/XX/XXXX, I received a refund of the lock-in fee. 

I am filing this complaint based on my experience with KeyBank. I am a current mortgage customer, and I was treated poorly through this process. The appraisal done on my home, which is located in a predominately XXXX suburb, was far lower than a second appraisal, which was done for refinance through another bank. The second appraisal was completed, valuing the home at {$230000.00} ; nearly {$40000.00} more than the first appraisal by Key Bank. This is a textbook example of redlining by KeyBank. Deceptive practices like undervaluing properties ; combined with a lack of knowledge of the loan application process, leave homeowners feeling helpless and unsure of their options. I am privileged to have the help of family and friends who coached me through this process and insisted that not only should I step away from this refinance, I should also ask for return of my fees. There are many other homeowners who do not have the same help. It is my belief that this is not an unusual practice for KeyBank. I am sending this complaint in the hope that this does not happen for other vulnerable homebuyers/homeowners who do not know where to turn. It was not enough to get my fees back ; because I have no doubt there is someone else in my same situation.