Consumer complaint received 2022-12-14
Company: WEBSTER BANK, NATIONAL ASSOCIATION
State: RI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We initiated a mortgage application with Webster Bank in late XX/XX/2022 ( ~ XX/XX/XXXX ). We filed a full application and provided all the requisite information/documentation to seek approval for a loan to purchase a condo in XXXX by the end of XXXX. Later on in the process we were informed by the loan XXXX that all our information was lost and would be required again. We did not get a full explanation as what happened to our information, how he/bank could have lost it. This information was provided by phone and any attempt to get answers in email were not responded to. To compound the issue- beyond the concerns re privacy and loss of sensitive information - there was no attempt by the bank/employee to help expedite the process to still have us meet the deadline to get a commitment letter. XXXX XXXX, the loan XXXX, then sent us information requiring that we fill out a completely new application and within this new request the interest rate we had initially gotten had also increased by a point. We challenged in writing the unfairness of this since none of what has happened was our fault. XXXX XXXX would only respond to us by phone, and we now know or believe it was a deliberate attempt to not have a paper trail.

With significant concerns about the compressed time to restart the process, we got XXXX XXXX on the phone with the real estate agent representing us so that the agent could explain to him that the seller was not amenable to delays. In that conversation XXXX XXXX also acknowledged the loss of our documentation. After that phone conversation and getting no clear directive on how we would meet the deadline of getting the commitment letter and in jeopardy of losing our deposit, we had to pause our efforts with Webster and seek help from another bank through a very accelerated/white glove process. This could only happen because of an existing business relationship with that bank. 

Even though we were able to meet the deadline and not lose our deposit and the condo, it came at a significant cost to us as we had to accept a higher interest rate, on a XXXX loan ( instead of a XXXX loan we had with Webster ) and pay almost three points. These additional costs of almost {$13000.00} was as a direct result of Webster 's gross negligence. 

We outlined what had happened in written communication and sent to the bank ; they are denying that we were told our information is lost and are now saying that our application was closed because we did not provide information they asked us for. We provided all information the bank asked of us for as well as updates, each time within 72 hours, and we believe it was on that information that a pre-approval letter was generated for us to initially enter into a sale agreement. Furthermore, the bank indicated that the only correspondence they received back from us was the disclosures. If they are acknowledging receiving the disclosures, this is further evidence to us that they received all the information we sent as we did not send the disclosures separately but as part of a combined file. We would like to know what happened to the rest of our information and what the truth is behind this mishandling. 

We are asking for a full investigation to determine why we were informed that the documents were lost- this was told to us on more than one occasion and also to us with an external party present. This was the reason as well as the lack of faith in their process, and their unwillingness to expedite the process if we filled out a new application, that caused us to pivot to another bank two weeks before a commitment letter was due. This is the same information/documentation we provided the other bank. 

We are willing to provide any additional information required ( time/date stamped ) to corroborate any aspect of our story and interactions with Webster and hope that this will also force them to do a proper internal investigation. Information submitted to Webster was using their systems and instructions- via remote doc which was a link in XXXX XXXX signature. After he told us the information was lost he then provided this new link ( below ) for us to use going forward, which we did use to provide some additional information. 

Please TRY USING THIS SHARE FILE LINK XXXX XXXX XXXX XXXXXXXX If Webster lost our information we believe they should have provided : 1. credit monitoring for having lost our information, 2. honored the existing rate since the loss of documentation was not our fault ; we checked the option to lock the rate when we returned the documents 3. Helped us by expediting the process to meet the XX/XX/XXXX commitment deadline if we had to again submit and redo the process we had done in late XXXX. 
4. In the absence of the above, compensating us for having to switch to another bank in order to meet the deadline seems reasonable. 


Finally, we want to make sure that this is not a pattern and also that we were not being discriminated against because of our race. At this point we have no idea re the real reason for why Webster asked us to file another application. whether our information was truly lost or was it to charge us a higher rate or something else.

Any email, documentation, time/date stamped info can be provided. All uploads/information supplied were done using links Webster provided to us.

Company response to consumer: Closed with explanation