Consumer complaint received 2020-12-19
Company: PEOPLE'S UNITED BANK, NATIONAL ASSOCIATION
State: CT
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
The mortgage refinance process was probably the worst service experience I have ever had from application to close. I was mislead throughout the process. This is a timeline of events : 1. My first appointment was a disaster - it took over 90 minutes because XXXX XXXX ( " XXXX '' ) didnt know how to do the mortgage application and ended up making me do it TWICE. She told me sob stories about how other customers have yelled at her and I felt sorry for her so I didnt want to complain. 
2. The application paperwork was generated and sent to me via email on XX/XX/2020 NOT securely these documents contained my FULL Social Security Number among other confidential information. This is a HUGE security risk. 
3. On XX/XX/2020 I went to the branch to sign the application paperwork and to provide my payment for the Credit Report and Appraisal ( a total of {$500.00} ). I wrote two checks, one for each service. Branch Manager XXXX XXXX ( " XXXX '' ) personally answered a few questions I had on the Loan Estimate document because XXXX was incapable of providing an explanation. The numbers did not make sense to me. There were charges that were not applicable which you explained and I was assured by XXXX many times it was just an estimate and " it comes off at the end ''. 
4. After about 1 1/2 weeks, I noticed my checks were still not yet cashed. I followed up via phone call because I had not heard from anyone and was concerned there was a problem with said checks. I was called by XXXX and asked to provide new checks because there was a mistake made when depositing the checks and they couldnt be deposited. When I asked what kind of mistake could have possibly caused this, XXXX blamed it on her XXXX XXXX and that she couldnt see what she was doing. 
5. On XX/XX/2020 I requested via phone call and email ( attached ) that the original checks be returned me when I drop off the new checks. It was confirmed in writing the checks would be returned. My mom dropped off the checks without the original checks being returned to me. To date, those checks were NEVER returned to me nor were copies provided to me that showed a deposit attempt. Makes me wonder if those checks were lost/misplaced by someone at Peoples? 
6. Then on XX/XX/XXXX, XXXX personally called me to explain that an internal deadline was not met ( XXXX also noted it was 100 % the fault of Peoples Bank ) and an entire new loan application had to be generated and I would need to resign all of the documents. He said this would create a difference in the rate but Peoples Bank would cover the difference. This was very inconvenient and had me doubt the capability of Peoples Bank to handle this process but I was assured everything would be fine going forward as I would not be charged any more than originally quoted. 
7. Weeks went by without hearing a word from anyone at People 's. I went to the branch one Saturday but both XXXX and XXXX were off. When I called XXXX on XX/XX/2020 she blamed the delay on the mortgage underwriters. 
8. On XX/XX/2020 I received the Commitment Letter via email which had my address spelled incorrectly. I asked to have it corrected and it was. I also asked why the appraised value of my home was not updated to the official appraised value of {$590000.00} ( email attached ). I was required to pay {$490.00} for an appraisal so the Appraisal Value should be reflected on these loan documents. XXXX assured me the appraisal value would be reflected properly on the Closing Disclosure. 
9. I did not hear from XXXX  or anyone for a couple weeks and was worried my loan was lost again. On XX/XX/XXXX, I needed to provide more information which I did so in a timely manner. 
10. I followed up with XXXX on XX/XX/2020 worried that the closing date would be missed. I was told everything was being sent to the attorney. When she confirmed the documents were sent to the attorney on XX/XX/XXXX she again blamed the delay on the underwriters working from home since XX/XX/XXXX. She assured me that the attorneys office would go over the Closing Disclosure and explain everything to me. I was also concerned that I was being charged too much by the attorney. I had no previous relationship with the attorney. On Day 1 I was told to pick an attorney from a long list the bank used and was told that there would be no additional fee or charge, they all charge the same amount and only charge the bank. Clearly looking at the fees on the Closing Disclosure, misleading and incorrect information was given to me. 
12. On Monday, XX/XX/XXXX, the day of the closing, I had an unaffiliated third-party assist me in reviewing the Closing Document because I did not know why the closing costs were so high, why Section E did not add up, why the appraised value was not reflected and what Lender Credits were. I was surprised to hear that Line Item A. 3 Loan Level Price Adjustment to Peoples United Bank looked to be points as I was under the assumption from Day 1 that there were ZERO points involved in this mortgage. I thought maybe that was the rate difference that Peoples was covering but then the Lender Credits did not completely offset that amount so it did not make sense to me.

13. By early afternoon, I was very concerned about the Closing Disclosure being incorrect and misleading and I decided not to proceed with the closing.

14. Shortly after I stated I would not be moving forward, I received a call from XXXX to discuss the experience and to see if there was anything he could clarify and anything he could do to make me reconsider. After speaking to me twice he clarified that Line Item A. 3 was the difference in rate caused by the mistake that was made by Peoples Bank causing me to complete another application LUMPED TOGETHER with a 1/4 point for not escrowing my property taxes. I was never told ( and dont recalling seeing anywhere in writing ) that I would incur points for not escrowing my property taxes. And why was this lumped together as if to hide it? XXXX told me it was a preference to either pay property taxes/homeowners insurance out of pocket or via escrow. If I knew up front that points were charged for not escrowing the property taxes, then I would have escrowed the property taxes. 
15. XXXX then emailed me on XX/XX/XXXX at XXXX ( attached ) to provide some " clarifications ''. XXXX included an updated Closing Disclosure which the Appraised Property Value on Page 1 is still the estimated value provided on Day 1, not the appraised value that I paid {$490.00} for. How is it that I was required to pay Peoples Bank {$490.00} ( I asked why the home needed to be appraised in the first place give the amount of equity and I was told I HAD to have it appraised ) to have an person come inside my home during a pandemic to appraise my home and then Peoples Bank never even acknowledged this appraised value on any of my loan documents? Additionally, Section E did still not add up. I also do not see in anywhere in writing that points are charged for not escrowing taxes and it was definitely NOT broken out on the document.

I had every intent to proceed with this loan to get a better rate than I have on my HELOC at People 's Bank and to fund a home improvement project. I provided all required documentation, paperwork and payment in timely manner. However, after all of the experiences listed above, including the misleading and inaccurate Closing Disclosure, I did not feel comfortable closing on this loan. I even thought I was not provided the best rate at the time and it should have been 2.875 %. It is unfortunate that the Closing Disclosure was misleading and inaccurate and my concerns went unaddressed until I notified the parties involved that I would no longer be proceeding with the loan. And then even after that, it still was not never rectified to complete accuracy. And to this day, I still never got a full explanation of what happened with the original checks I provided for the Appraisal and Credit Report Fee and my appraised home value was never used.

The lack of knowledge, training, customer service, transparency and oversight at Peoples Bank is appalling.

I sent an email to the branch manager expressing each of these concerns and resolutions on XX/XX/2020. I followed up to confirm receipt on XX/XX/2020 and was told I would hear from the People 's complaint department via phone or email in 1-2 weeks. I have still not heard anything from anyone at People 's Bank regarding this matter.

Company response to consumer: Closed with monetary relief