Consumer complaint received 2017-07-17
Company: Cadence Bank
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/XXXX - I reached out via email to   XXXX   XXXX   ( Loan Officer working for Bancorp South ) and stated that I was referred to him by s ome good friends of mine and was interested in the same Jumbo Loan product that they acquired through him ( Jumbo Portfolio 5/1 ARM with an 89.9 % LTV ) that only required 10.1 % downpaymen t.   XXXX   XXXX   responded back same day and asked me to visit his website to fill out an application and give him permission to pull my credit. We would be in touch after that.
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 XX/XX/XXXX -   XXXX   XXXX   contacted me via phone after reviewing my credit report. The main question he had during that 10 minute conversation was the mitigating circumstances around the short sale that I did in the summer of  XXXX . I explained that my company relocated my job from   XXXX   to  XXXX  and a short sale of my residence at that time was my only option because renting would leave me with too big of a monthly deficit.   XXXX   XXXX   was good with that explanation and determined that I would qualify for the 89.9 % LTV Jumbo Portfolio loan product that I was interested in. He stated that I was ok up to a purchase price of {$750000.00} but after that it would be harder to qualify. Consequently the purchase price of the house that we entered into a sales contract on in late  XXXX  was {$620000.00}.
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 XX/XX/XXXX -   XXXX   XXXX   issued a pre-qual letter to me for the purchase of a home.
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 XX/XX/XXXX - I entered into a sales contract for the purchase of said home.
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 XX/XX/XXXX -   XXXX   XXXX   ( Processor ) reached out to me via email and asked for 10 documentation items. I responded on   XXXX   XXXX   with 14 attachments. It is worthy to note that I received an out of office message from  XXXX .
<P/> XX/XX/XXXX -   XXXX   XXXX   asked for 5 more items which I promptly returned same day.
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 XX/XX/XXXX  My funding contingency expired on the purchase of the home.
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 XX/XX/XXXX - My file was submitted to Underwriting  XX/XX/XXXX -   XXXX   XXXX   reached out via email and asked for a Letter of Mitigating Circumstances around my short sale ( 1 day after the file was submitted to Underwriting ) back in the summer of  XXXX .
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 XX/XX/XXXX - I was notified late in the day ( Friday, 3 days before closing ) by   XXXX   XXXX   that Underwriting did not sign off on my file because of " short sale seasoning '' and that they were escalating the file up to the President of Mortgage Banking (   XXXX   XXXX   ) for final review.   XXXX   was out that day so he would have to review the file on Monday   XXXX   XXXX  . I had to submit an addendum to my sellers to push the close back one day to XX/XX/XXXX .
<P/> XX/XX/XXXX - I received an email forward from   XXXX   XXXX   showing that   XXXX   XXXX   had denied my loan file because not enough time had passed from my short sale in the summer of  XXXX . However if I could come up with an additional 15 % down ( {$93000.00} ) they could proceed with financing. At this point, I had no options. I did not have an additional {$93000.00} to put down, I was in breach in of a sales contract that involved a relocation company that was threatening to sue me, and I was homeless because had to be out of my house by   XXXX   XXXX    because I sold it in order to qualify for the purchase Mortgage from Bancorp South. It is worthy to note that no concerns about my short sale ever came up by anyone at Bancorp South prior to   XXXX   XXXX   ( 3 days before closing ).
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 XX/XX/XXXX - I was able to find a family member that was willing to gift me {$90000.00} so I could come up with the additional 15 % Bancorp was demanding of me in order to proceed with financing.
<P/> XX/XX/XXXX - I closed and funded financing with Bancorp South My complaint against Bancorp South is that not only were they negligent in how they handled my loan file, effectively truing me in until the very end of the process where they denied my original loan, but they also violated CFPB UDAAP laws by putting me in a situation that I could not control and they changed the terms and loan product on me. I had no time or options to work with other lenders on alternative financing ( unless I wanted to be in breach of a sales contract and homeless ) effectively forcing me to accept their counter offer at the 11th hour. Bancorp 's actions were unfair, deceptive, and abusive. Because of those actions I am financially damaged. I now have an additional {$93000.00} tied up in my house that I was not counting on and no longer have access too because of  XXXX  ' strict state laws on maintaining a 80 % LTV for cash out refinancing.

Company response to consumer: Closed with non-monetary relief