Consumer complaint received 2022-03-13
Company: CITIBANK, N.A.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/2022 I contacted loan officer XXXX XXXX from Citi Bank who was recommended to me for a Cash Out Refinance Mortgage I was looking to do on my Condominium. I told him I was looking to borrow {$400000.00}. I went over all my income, expenses & credit score ( over 800 ) with him and he said qualifying should be no problem. 
On XX/XX/XXXX I submitted the application for the {$400000.00} loan with a fixed rate of 3.250 %. I uploaded all the initial required documents like 2 years of Tax Returns, Paystubs, Bank Statements, Taxes & Insurance etc.. 
On XX/XX/XXXX a payment for fees and appraisal was requested and I paid {$750.00}. Over the next few weeks I was asked for multiple documents which I provided the same or next day. 
On XX/XX/XXXX I was asked for a letter of explanation for the purpose of the loan which I provided on XX/XX/XXXX. I stated it was to repay my daughter who lent me {$400000.00} to purchase the Condominium. I was asked for a Loan Agreement which I provided along with a copy of my daughters cancelled check. 
On XX/XX/XXXX XXXX XXXX called me and asked if I wanted to increase the Loan amount to {$420000.00} to be able to pay back my daughter and cover the fees. I agreed and the loan was re-disclosed. 
Over the next few weeks multiple new documents were requested and the process was getting to be very slow and laborious. It was taking a week for the Underwriter to review every document requested. I called XXXX to see what was going on and left a message. He didn't return my call and I left 4 phone messages and several texts over the next 2 weeks. I finally texted him that I was going to file a complaint with Citi and he finally returned my call. 
More documents were requested regarding 12 months of cancelled checks for my car lease along with a letter of explanation about what I plan to do with the asset at the end of the lease. I told XXXX XXXX this is really getting to be ridiculous since my credit report clearly shows I never had a late payment in the 2 years since the auto lease started. I did however provide the documentation. When I asked him why they were requesting this he stated there was a problem with my DTI. I told him that you had my income and debts for almost 2 months and why am I being told about this now? He said he would inquire and get back to me. When he called back he said they could only offer me a {$210000.00} loan because of the high taxes and HOA fees. I was furious but at this point I agreed to move forward because I needed to give my daughter at least part of the funds she lent me. 
After going through this nightmare for over 2 months I receive a generic email ( not even the courtesy of a phone call from XXXX XXXX ) on XX/XX/2022 stating Adverse Action : " The principal reasons for credit denial are : * Requested Loan Purpose '' I really couldn't believe my eyes since I provided the attached letter and documentation almost 2 months earlier on XX/XX/XXXX. It was never addressed as a problem for almost 2 months. I believe they were just looking for a way to decline my loan and pulled this out of their hat at the last minute. 
I am a XXXX y.o. XXXX  with a XXXX XXXX. I have gone through so much stress for over 2 months with this. I have had trouble sleeping the last 2 nights. I believe it is more than incompetence and I find it very curious that when I applied the lock rate I had was fixed at 3.250 %. The rates for Citi Bank 30 Year Fixed as of toady are now at 4.0 % Something is not right. 
I now have to start this process over again with another bank with rates almost a point higher. If I can get a 4.00 % rate I will be paying {$31000.00} in more interest since I no longer have the 3.25 % Rate.

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