Consumer complaint received 2018-01-11
Company: CITIBANK, N.A.
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
To whom it may concern, We are sending in this compliant with the hopes for justice and recouping our loss. 
Back ground history We opened a 2nd mortgage with XXXX XXXX in XX/XX/XXXX for {$210000.00} Loan was then transferred to CitiMortgage a short time later. 
On XX/XX/XXXX XXXX lost his job, CitiMortgage was contacted in an attempt at possibly refinancing the loan at a lower interest rate. The CitiMortgage representative advised that with XXXX being unemployed it could not be done. 
In XX/XX/XXXX still with no job and drowning in debt we made the hard decision to file bankruptcy. My bankruptcy attorney included all open debts/ with balance on my credit report at the time, to obtain the relief we disparately needed and filed the appropriate chapter XXXX. 
We tried negotiating with CitiMortgage to modify the Mortgage Interest rate which was at 11.75 % after several months of back and forth the modification unit at CitiMortgage said we were close to obtaining the requested modification. We then received a telephone call advising us that the loan was no longer in the Modification Department and had been sent to the collections department. 
We received no further billing statement or correspondence from CitiMortgage after they advised that they were putting the Mortgage in Collections As per our credit report dated XX/XX/XXXX, CitiMortgage transferred/closed my account as of XX/XX/XXXX. No new account was reporting on my credit report at that time. 
We never heard from CitiMortgage nor any other entity they transferred my loan to. Nothing ever appeared on my credit report regarding this account other than transferred/closed by CitiMortgage. Nothing ever appeared in the Derogatory section of my credit report regarding this account as past due or in collections. 
Complaint # 1 On XX/XX/XXXX eight years after CitiMortgage transferred/closed my account we enter into a contract with a builder to build a new home in Florida. We were going to sell our current home in NY during the build process and move into our new retirement home. The contract allowed for a 30 day mortgage contingency to allow us enough time to know we qualified for the new home. 
The mortgage company XXXX pulled our credit report on XX/XX/XXXX in the preapprovalprocess ( copy attached ). As indicated on this report the CitiMortgage account appeared as it always had transferred/closed with CitiMortgage. We were approved for the new loan please see ( pre-approval attached ). 
In XX/XX/XXXX when selling our then current home in NY the closing attorney informed us that there was an open lien from XXXX XXXX on our current home. 

We advised the closing attorney that the Mortgage lien listed for XXXX XXXX was transferred to CitiMortgage in XX/XX/XXXX. He questioned if the Mortgage loan had been discharged during the Bankruptcy as there was no deed filling for CitiMortgage on the New York Property. He also advised that the NYS attorney General had taken legal action against XXXX XXXX and that they were no longer allowed to write Mortgages in New York State as they were found to be a predatory lender. 
The closing attorney tried to help, however in the end we had a contract to close on our house and did not want to break the sale as our thirty ( 30 ) day mortgage contingency was up on the contract for the new home in Florida. After many nerve racking and stressful days we contacted CitiMortgage and obtained a payoff for the second mortgage account from CitiMortgage that was ( Marked ) transferred/closed. Please note that the account number on the payoff received from CitiMortgage is the same account number listed for the transferred/closed mortgage 8 year earlier. We were very distraught and did not know we had an avenue to seek relief we believe that CitiMortgage should return the {$180000.00}. 
Compliant # 2 In XX/XX/XXXX with our home nearing completion XXXX pulled an updated credit report. This new report reflected the CitiMortgage account ( same account number ) under derogatory credit items as a charge off paid ; paid on XX/XX/XXXX. Why would we pay a charge off? 
XXXX XXXX first requested proof this was paid prior, as they did not understand the timing and what happened. After we told them the story they tried submitting our loan file to convention good loan banks with the explanation that this was not a XX/XX/XXXX charge off. That CitiMortgage in fact charge this off 8 years ago as reported on our credit report. 
We were locked in for 80 % LTV at a rate of 4.25 % fixed rate ( see lock in ). They declined our loan due to a mortgage derogatory paid less than 12 months old ( see decline notice ). XXXX  checked with other lenders and they all said the same thing. 
XXXX worked and found a portfolio lender to do the loan at a lower LTV 70 % and a much greater interest rate and adjustable program ( 7.25 % see Closing Disclosure ). We were of course very distraught not only did CitiMortgage take proceeds we expected they now have made it nearly impossible for us to get a mortgage for the purchase on our new home. We had to close with a lower mortgage taking yet more of our retirement savings ( {$33000.00} ) and have an adjustable rate mortgage at a higher rate. Please understand we had no home at this point and builder was holding {$59000.00} in escrow and at risk of defaulting on our contract. 
The monthly payment difference between 80 % LVT at 4.25 % with a P & I payment of {$1300.00} compared with a 70 % LVT at 7.25 % with a P & I payment of {$1600.00} is {$280.00} monthly. As a retired couple this is a huge hardship. 
Not only are we out the additional down payment requirements the portfolio lender required of {$33000.00}, we are paying an additional {$280.00} monthly in P & I. 
In order for us to possibly obtain a lower Mortgage rate we have been told that we must wait at least 24 months from CitiMortgages date reporting this derogatory credit line that should have been reported in XX/XX/XXXX and in fact was not as is evident on the attached credit reports. As a direct result of the bad faith actions of CitiMortgage we will be paying an additional {$280.00} a minimum of 24 months or {$6800.00}. Not to mention the cost of refinancing.

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