Consumer complaint received 2018-06-21
Company: HUNTINGTON NATIONAL BANK, THE
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
XX/XX/XXXX To Whom It May Concern, The following is a complaint against Huntington Bank after obtaining a second home mortgage. We live in XXXX, XXXX and we had purchased a villa in XXXX, XXXX. We have turned to XXXX XXXX XXXX XXXX for all of our financial needs for the past 17 years. We have a personal friend who is a real estate loan officer at XXXX XXXX XXXX XXXX, so when it came time to obtain a mortgage for the villa I gave her a call. When I contacted her I explained that we were looking for a 30 year fix loan. After receiving all the information she needed she proceeded to educate me on XXXX XXXX XXXX XXXX requirements for receiving a second home mortgage on a villa. 
She educated me on the fact that the villa needed to be Warrantable. She stress how important this would be because if it was not warrantable XXXX XXXX will not write the loan. So after discussing this with my husband we decided to look for another financial institute for the mortgage. 
So I did my homework and I contacted 2 other banks in XXXX ( one of them being Huntington Bank ) and 4 banks in XXXX. On XX/XX/XXXX I  contacted Huntington Bank and spoke with XXXX XXXX, their loan officer. I explained to her that we were looking to obtain a second home mortgage, it was a villa, and that we wanted a 30 year Fixed mortgage. I even inquired if Huntington Bank required the villa to be Warrantable, her response was you dont need to worry about that. 
On XX/XX/XXXX I texted XXXX to find out what the rate was and she responded Rates just came out, 30 year fixed for condo 4.625 %. I proceeded to ask her if we would be able to close by XX/XX/XXXX and she said Absolutely I asked no fees, no points, just closing cost and she replied Correct. She NEVER said a thing about that the villa had to be warrantable.

I discussed Huntingtons offer with my husband and on XX/XX/XXXX texted XXXX and told her we wanted to go with her offer. On XX/XX/XXXX the process began. I obtained all of the information that XXXX requested and dropped everything off at the bank on XX/XX/XXXX. On XX/XX/XXXX my husband and I met with XXXX to sign the loan application. She went over all of the papers and no mention that the villa needed to be warrantable. We signed papers for a 30 year FIXED loan. When we met with XXXX to sign the loan papers she told us that when ever something came in for the loan we would get a new set of disclosure papers. I asked her will it say what came in and she said no I will let you know if there is something that concerns you. We said ok and the process went on. 
We were receiving new disclosures in the mail and I would look at them A couple of occasions I had questions and I would contact her and she would explain that those were not the Final Numbers. I was looking at everything very closely and I told XXXX I was because my sister had just closed on her condo and it was a nightmare. I told XXXX Im sorry I keep bothering you but I do not want any surprises at closing. Still XXXX never said anything about the villa had to be warrantable. 
Then on XX/XX/XXXX I received that following email : Hello XXXX, The only item we are waiting on is our condo department to finalize an item that should be completed today. We found out that the condo is considered Non Warrantable Condo due to the following : The HOA does not fund adequate reserves account. XXXX requires at least 10 % of total assessments which would be {$9300.00} and they are only showing {$3900.00} as a reserve line item. We will have to move this to a non-warrantable HMG Portfolio. 

This doesnt impact you in regards to the HOA coverage, it more has to do with the Lender and what our guidelines require. Your rate will stay the same, it will just be owned by Huntington instead of XXXX XXXX. Essentially from your end you will not notice a difference. 

We will be moving your file for final approval shortly and should have you approved tomorrow so you can be scheduled. 
Your current cash to close is {$40000.00}. This is still subject to go down as it Tax Pro-rations and seller credits still have not been applied but I know you wanted to have an idea as to what you would be needed, It will be less than this but to give a rough estimate. 


XXXX XXXX Mortgage Loan Officer NMLS ID : XXXX Phone : XXXX Fax : XXXX Mobile : XXXX XXXX The Huntington National Bank XXXX XXXX XXXX. 
XXXX, XXXX XXXX www.huntington.com At XXXX XXXX. I called XXXX about this email but, she did not answer. XXXX returned my call onXX/XX/XXXX and she explained the XX/XX/XXXX email. She explained what  warrantable meant and she said that everything is still the same and that this does not affect you in anyway I believed her and that evening I received 2 disclosure packets in the mail. I looked at the numbers again. On XX/XX/XXXX I emailed XXXX about the numbers on the new disclosure packets that I received. She responded again this is NOT the final figures. She also stated When I get the final documents on Monday I will call you to review to make sure you happy with everything J  On XX/XX/XXXX XXXX emailed the final cd and she called me. She explained where the finals numbers came from and told me how much money I need to wire to the XXXX Title Company. 
Now it is time for closing we had decided to close in XXXX, XXXX and XXXX at XXXX XXXX was going to meet with us on Wed XX/XX/XXXX. We sit down with XXXX and he looks at the first page and he says ok your loan is for a 10/1 adjustable mortgage. I said what? and he repeated himself. I said that is not right we have a 30 FIXED mortgage and he said that is not what the paper says and he showed me the paper. He said maybe we should call XXXX.. I tried calling her and no answer. XXXX tried calling and no answer so then he emailed her and she called back. XXXX put her on speaker phone with myself, my husband and XXXX in the room. I proceeded to tell XXXX what XXXX said and XXXX proceeded to tell us that the loan was changed from a 30 year fixed loan to a 10/1 adjustable loan because the villa was not Warrantable. I told her she HAD NEVER SAID A WORD THAT THE TERMS OF THE LOAN HAD CHANGED. In fact I reminded her of what she said to me on XX/XX/XXXX nothing had changed and that this will not affect me at all. She proceeded to say Im sorry if I neglected to tell you this Then she said I spoke to XXXX ( the underwriter ) before I called you and she said she sent out the disclosure.  After getting nowhere with XXXX I asked to speak with the manager and he got on the phone. His name is XXXX. I proceeded to tell him what was going on and he proceed to tell me that XXXX knows very well that Huntington Bank does not have a 30 year fixed loan on a nonwarrantable condo. He proceeded to tell me that there was nothing that he could do. 
XXXX and XXXX both told us that we did not have to sign the papers. However, at that time my husband and I felt like our hands were tied and we were backed into a corner. We were completely beside ourselves. We felt like we HAD NO CHOICE but to sign the papers. We had invested a lot of time and money to purchase this villa. If we did not close we probably would of lost the villa because the closing date was already extended once and we had to close by XX/XX/XXXX. Also, it was my understanding that all the monies we had put out for this closing would not be refunded. We do not have the funds to do this process again. Also, it took us 2 years to find this villa and it was something we both worked very hard for. 
We feel that Huntington Bank has done a disserve to us. I was thorough in choosing the bank for our mortgage. I was very clear with XXXX that we wanted a 30 year FIXED mortgage and that I did not want to take a chance with a bank that required the villa to be warrantable. I was very clear that I did not want any surprises at closing. During this process I was diligent to provide the information that was needed. I examined the disclosures that were sent to us but I did not ever think to look to see if the terms of the loan was changed. I had no reason to look at that. XXXX had multiple opportunities to tell us that the terms had changed. I have numerous emails, texts and phone calls from her and she NEVER said a word. We feel that XXXX chose not to give us this information because she knew that we would have not continued with the loan. We never had a chance to discuss our options, look for another lender or make any decisions. 
My husband and I are not in the banking industry and relied on XXXX XXXX knowledge and expertise to manage our mortgage needs and she failed us. 
We our looking to see what options we have against Huntington Bank and the 10/1 adjustable mortgage that we obtained. XXXX said it will not affect you at all but reality is it will affect us for 20 years! 

Thank you for your time with this matter. 
XXXX & XXXX XXXX

Company response to consumer: Closed with explanation