Consumer complaint received 2017-03-13
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: GA
Product: Mortgage
Sub-product: Other mortgage
Issue: Application, originator, mortgage broker

Complaint:
On XXXX I submitted an application for a refinance loan to XXXX, Mortgage Loan Officer, XXXX, at Bank of America at XXXX , XXXX , GA XXXX. I submitted all requested income verification and 2 years of IRS submissions. On XX/XX/XXXX XXXX requested a check for {$500.00} to cover the cost of an appraisal. I assumed that the loan approval was in process and the appraisal was the last step. At no point in our several conversations and face to face meetings did XXXX ever say the loan approval was in jeopardy. The appraisal was scheduled for XX/XX/XXXX and on XX/XX/XXXX my loan was declined. While I was surprised that I was not approved, I accepted the declination and simply asked XXXX for the return of my {$500.00}. She never explained to me why she had me pay for the appraisal on a loan she knew I did not qualify for. She said it was not bank policy to refund the appraisal fee even when the loan was denied. 

After several months of speaking with other seniors like myself about these questionable practices, I once again contacted XXXX on XX/XX/XXXX and asked her to send me a copy of the document I signed which stated that I waived my right to have the appraisal fee returned if the loan was denied. She responded that the appraisals are nonrefundable as they are done by a third party and paid for when the service is completed. Her response ignored my request for a copy of the document I requested and simply stated that a third party was involved, a detail that was never told to me. I repeated my request and this time asked for the document I signed that stated I was aware that the appraisal would be performed by a third party and I would not get a refund if the loan was not approved. I told her that I believed if she could not produce such document then I could assume there was collusion between her and the third party which would be illegal. She has never acknowledged my request for the documentation. Instead she listed a timeline of the process which did not include the date she pre-qualified me for the loan before asking for the appraisal fee. I stated that I was simply asking for the return of the {$500.00} appraisal fee and that it was my desire to handle the matter at the bank level before getting government protection assistance for seniors involved. 

XXXX forwarded my request to XXXX, Vice President, XXXX Sales Manager, Bank of America Home Loans. XXXX did call my home on two occasions and left a message for me to return his call. He also emailed me his phone number. I left a message for him to reach me on my cell phone number. I called him at his office a second time and to date have not heard back from him. 
These loan practices unfairly target senior citizens and the uninitiated who rely on the honesty and integrity of the loan officers they are working with especially if it is with one of the largest banking institutions in the country. Had I been informed at any point in the loan process that the {$500.00} appraisal fee was not relevant to my loan approval, I would never have paid it.

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