Consumer complaint received 2022-01-30
Company: JPMORGAN CHASE & CO.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Chase Bank did a severelypoor job in the loan process, relying on hearsay, rather than legal documentation, putting me, the consumer, at severe risk of not closing my home on time. 

In XX/XX/XXXX, I entered into contract for a new home to be completed later in the year. I am informed by thebuilder that this is a CONDO and requires CONDO approval, if I choose to use an outside lender. 

I called XXXX XXXX, XXXX ID XXXX, in XX/XX/XXXX to discuss securing a loan for a newly developed CONDO project. I tell him that builder has told me XXXX approval is required, and can Chase obtain it? He says yes. 

On XX/XX/XXXX, he emails me a link to apply for financing. 

On XX/XX/XXXX, a rep from Chase reached out to the builder to confirminformation over the phone. 

On XX/XX/XXXX, my builder sends an email to Chase to confirmCONDO approval is needed. No one from Chase responds. 

I submit all the document required, including the purchase agreement that lists the property type as CONDO on the first page, and receive a conditional letter of approval on XX/XX/XXXX. 

On XX/XX/XXXX, I recieve a closing letter from my builder stating that i need to close escrow the week of XX/XX/XXXX. The close letter also states that documents must be delivered to title 7 days in advance of the close date. 

I follow up with Chase regarding CONDO approval on XX/XX/XXXX and XX/XX/XXXX. 

On XX/XX/XXXX, I receive an email from Chase Bank that " all XXXX project approval conditions have been cleared. '' For some reason, rather than sending documents to title 7 days before close, the appraiser comes to look at the property on XX/XX/XXXX. This is very late, and I know that because theLoan Assistant said she didn't know why my appraisal hadn't been ordered yet, and she had to copy her manager to get theappraisal ordered. 

I receive an email from Chase on XX/XX/XXXX that the " XXXX XXXX XXXX XXXX is involved to help expedite the report and get sooner than XXXX. Appraisals are independent contractor and we do not have control over their turn times but we are doing everything we can to expedite this. '' The appraiser later that week provides a report to confirm the property type is a CONDO. 

On XX/XX/XXXX, I receive a call from my builder. Someone from Chase has called her to confirm whether this property is a CONDO. Apparently, " they missed it '' and did not obtain CONDO approval. 

On XX/XX/XXXX, I am told by Chase that the approval was based on incorrect information provided to the Chase team by my builder on XX/XX/XXXX. 

On the phone on XX/XX/XXXX, the loan adviser admitted that they changed the property type to Townhome based on a phone conversation with the builder. He says that the builder is making this very difficult for them and doesn't want this loan to process. I asked why the appraisal was done so late, and he responded that the building wasn't finished. I told him that I provided a close later weeks earlier. 

On XX/XX/XXXX, the date of close, instead of picking up my keys to the house, I am wondering if I will even get this house I have been waiting nearly 1 year for. Chase informs me they are expediting the approval process but have to redo the entire loan, since it was processed as a TOWNHOME instead of a CONDO. 

AlthoughChase was able to obtain condo approval that week, it put me under a SEVERE amount of stress for which I have had to subsequently receive XXXX XXXX XXXX. Also, it put the timeline for closing on a virtual tightrope, one misstep and it would burst into flames. Because the timeline was so impacted, it resulted in another giant error on your end that greatly affected me, which I will be writing about in separate complaint. 

As far as I know, only drug deals and other illegal substances, weapons, and other narcotics are processed via hearsay and then need to be verified when someone actually looks at the goods. 

This is absolutely an unacceptable lending practice that puts the consumer at an extreme disadvantage for obtaining a loan.

Company response to consumer: Closed with explanation