Consumer complaint received 2018-06-25
Company: BB&T CORPORATION
State: MD
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
I obtained a construction loan from XXXX XXXX in XX/XX/XXXX to construct a principal residence. Once the construction was completed the loan was to convert to a XXXX Arm at XXXX XXXX for the first 5 years and then no margin starting in year 6 or month 61,  interest based solely on the index which was the 1 year XXXX rate. We had several issues with XXXX XXXX during the construction loan process. Due to those issues they agreed to a margin only loan after the initial 5 year period. All the details are in our loan modification dated XX/XX/XXXX. On XX/XX/XXXX XXXX XXXX was acquired by BB & T Bank. Below is a timeline of events that transpired : 1. Received our first statement from BB & T in late XXXX that stated the XXXX XXXX interest rate was good through XX/XX/XXXX ( attached ) when in fact our original agreement/loan modification with XXXX XXXX clearly stated it was good through XX/XX/XXXX. This has been resolved and BB & T has corrected this issue. 

2. BB & T had no record of the loan modification from XXXX XXXX which I provided to them and worked with XXXX XXXX to get it updated in their system. After several days of back and forth XXXX confirmed in an email dated XX/XX/XXXX XXXX XXXX that our interest rate of XXXX XXXX was good through XX/XX/XXXX and that our interest rate starting on month 61 or XX/XX/XXXX will be based on just the index ( 1 year XXXX ) as stated in the Loan Modification ( and amortization schedule ) agreement with XXXX XXXX   margin. No mention of a rate minimum at any point. 

3. XXXX I received a letter dated XX/XX/XXXX indicating that my rate starting on month 61 would be based on the index plus 2.75 % margin ( attached as BB & T Initial Adjustable Rate Notice ). I quickly contacted XXXX XXXX and she informed me that they could not honor the XXXX XXXX margin loan. I was finding this out almost 2 years later after being assured that the loan had been updated. BB & T made no attempt to notify me they would not honor the loan agreement in that 2 year period. 

4. In XXXX of XXXX, I elevated the situation to XXXX XXXX, after a few months of verification and research she too assured me that the loan was based on just the XXXX rate with XXXX XXXX margin. In an email dated XX/XX/XXXX, XXXX PM she confirmed : Senior management has determined that your Arm Interest Rate Adjustment will calculate based on a margin of XXXX for the upcoming XX/XX/XXXX calculation with an adjusted payment date of XX/XX/XXXX, and all future Interest rate adjustments. This email is attached and makes no mention of a rate minimum. 

5. In XXXX I received a formal letter from BB & TXXXX XXXX dated XX/XX/XXXX stating we have determined that your ARM Interest Rate Adjustments will calculate based on a margin of XXXX for the upcoming XX/XX/XXXX calculation with a payment date of XX/XX/XXXX, as well as subsequent Interest Rate adjustments. The letter is attached. Again no mention of a rate minimum. 

6. Next, I received a BB & T Mortgage Adjustable Rate Notice dated XX/XX/XXXX stating that while my upcoming rate change will be based on the index with no margin, that there is a minimum interest rate for the life of the loan at XXXX XXXX. The letter is attached. I quickly called XXXX XXXX at BB & T and she told me there was a minimum of XXXX XXXX for the first interest rate change however that did not apply to the other rate changes. Again there is a misrepresentation of the agreement. Nowhere in the agreement does it state that there is a minimum interest rate for the life of the agreement. In addition, there is an amortization schedule on page 11 of the agreement that clearly details the mechanics of the agreement that was conveyed to me by XXXX XXXX. 

7. Attached letter received XX/XX/XXXX indicating borrowers are deceased and the account has been updated. I emailed XXXX XXXX and others at BB & T to get a corrected letter that in fact my wife and I were not deceased. We never heard back. 

The bottom line here is there has been a complete mismanagement of our loan and time and time again I had to have things corrected. It started with the initial XXXX XXXX interest rate that was for the 5 year period. Once that was corrected and I sent them the fully executed XXXX XXXX from XXXX XXXX showing that this was a margin free loan starting on year 6 or month 61 ( as illustrated on page 11 ). The bank continued to send correspondence that was incorrect and inaccurate and then finally they sent a letter telling us we were deceased. Since XX/XX/XXXX XXXX month 61 or the start of year 6 )  I have been paying an interest rate of XXXX XXXX as a minimum rate just for year 6 as  incorrectly stated by BB & T. This directly contradicts the Loan Modification from XXXX XXXX ( see page 11 ), an email from XXXX XXXX dated XX/XX/XXXX and an email from XXXX XXXX dated XX/XX/XXXX. Two separate senior mortgage experts from BB & T both stated that on month 61 my interest rate would be based on a XXXX XXXX   margin and therefore just the XXXX rate which would have been XXXX XXXX. They both reviewed all loan documents and files which took months and they both sent me that in email as listed above. This needs to be corrected. My interest rate for year 6 needs to be adjusted to XXXX XXXX and I should be refunded the additional interest paid to the back with interest. 

While I understand there is a section of the loan that states a rate minimum in year 6,  that was not the agreement as illustrated by the amortization schedule shown on page 11 of the Loan Modification. Also two senior officials at BB & T ( XXXX XXXX and XXXX XXXX ) both spent months reviewing the loan modification along with their respective teams and sent us assurance that on month 61 we would have interest based solely on the index with no margin or any rate minimum. 

Please help. All documentation is attached.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation