Consumer complaint received 2020-01-20
Company: BMO HARRIS BANK NATIONAL ASSOCIATION
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
To whom it may concern, In XXXX of XXXX, we applied for a mortgage with Harris Bank, now BMO Harris. 

1 ) The loan origination process was full of errors and inaccurate appraisals were used by the bank. 
a. Functional Utility : All properties were Average Utility yet the comps were all adjusted by {$3000.00} up which shouldnt be. 
b. Gross Living Area : The square footage on all three comps was taken from the assessor, except for the property. Adjustments are inaccurate. The appraiser adjusted approximately {$50.00} a square ft the box for public water is checked, the house is on well water Age of comps. Most comps are within 6 months- Some of comps used are over a year old. 
Information does not align with assessors office for property as stated in comp. 

Breach of Contract and Inaccurate interest rates : The loan was signed on XX/XX/XXXX in the amount of {$530000.00} with interest only for 3 years and an adjustable thereafter. In XXXX, the loan did not convert to Principle and Interest per the schedule. We inquired with the bank and no one would answer or respond to our inquiries. I made numerous attempts to try to get the bank to respond to why the loan did not convert per the note. In XXXX, my daughter made a contact with one bank VP through XXXX to try to get some additional attention. At this point, the loan had not converted after nearly 4 years. In XX/XX/XXXX, that bank VP acknowledged that the loan was not serviced properly and applied a " temporary fix '' ; a fixed P & I rate for 1 year and a discounted rate thereafter. The bank has admitted to multiple other errors on this loan including charging inaccurate interest rates, having to make multiple adjustments and issuance of checks to my husband and I with little to no explanation or support for their calculations. 

In XXXX, we finally reached someone with BMO after additional filings with other agencies who referred us to the CFPB. The contact provided all of the support to evidence the breach of contract and acknowledged the breach. They offered us a fixed rate mortgage at 4 %, only if we sign an agreement waiving all acknowledgements of the bank 's breach of contract by failure to convert this loan to P & I in accordance with the note along with any other errors. This breach of contract has cost my husband and I approximately 60K and years of time and effort to try to get someone to acknowledge there was an issue.The bank argues that we could have paid more, above our owed interest amount, however why would we pay more if we know our payments are not applied correctly and we can not obtain statements from the bank with principle and interest due. 

Summary of note issues : -Breach of contract- loan did not convert to P & I in accordance with note -Inaccurate interest rates charged- XXXX, XXXX -Errors in transaction history resulting in inaccurate XXXX, causing customer to refile with accurate rates.

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