Consumer complaint received 2022-05-25
Company: TD BANK US HOLDING COMPANY
State: NJ
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I applied for a Construction to Permanent Mortgage in XXXX XXXX to help build a new construction permanent residence through TD Bank which was expected to be built and delivered by our XXXX with XXXX Months per our contract. I have had a terrible ongoing experience with TD and have been victim of deceptive sales practices, misleading communication, and incorrect processing and calculation of my loan. These various incidents have spanned over the course of the last 2 years where I had reached out to TD and escalated my concerns on multiple accounts. While I wanted to file this complaint earlier I was reluctant and scared to do so and didnt want to jeopardize anything with our until our loan recast process was finalized and our new reduced payment was finalized and set in stone. I can summarize the incidents as follows and can provide detailed email evidence of interaction and engagement with TD. 

Concerns : 1. Representative on XX/XX/XXXX Locked my mortgage rate without my consent as additional confirmations were pending from the seller of the property. Exceptions were needed to unlock the rate. I was also mislead indicating that if I considered a 15 day rate lock that some exception pricing would be possible where I would receive a better discounted rate. 
2. I was informed by my XXXX when raising concerns around project delays that TD was accommodating exceptions during the COVID Pandemic and would extend terms to aid customers who were impacted by COVID. In my case I had a 1 year interest only term to finalize the build of my home which was delayed and impacted due to supply chain and other permit delays as a result of the pandemic - when I and my XXXX ( who referred me to the TD representatives ) reached out to TD related to accommodating an extension given the above circumstances in XX/XX/XXXX ( as my 1 year was approaching ) where they informed me that the option to extend my interest only construction period due to COVID19 ended as of XX/XX/XXXX. I was not aware or notified at any point in time that this option was going away. TD had been managing my draw schedule this whole time and they would have line of sight that my house was only 35 % complete with months left before my sizable loan was going to convert to the full principle and interest payment. I would expect that this would raise a red flag and we would be contacted to discuss our situation and any financial implications or options available to us such as a COVID19 Extension/Accommodation. Had I been informed there would be nothing to stop me from reaching out proactively prior to XXXX XXXX to request the extension of the interest only period. Furthermore, I was not notified until late XXXX where I received a letter that my loan was converting literally in days ( as of XX/XX/XXXX ) where my payment would increase by over XXXX and I would be responsible for carrying the entire cost of the full loan in addition to the existing mtg on my current home. This was a clear example of another communication gap where TD could have informed me proactively that this would be happening and give me my options given that their records indicate that my house if only half complete and not yet livable. As a resulted, i now needed to cover significant costs associated with maintaining XXXX larger mortgages which forced me to accelerate the sale of my old home so I can pay down a size-able chuck of principle ( XXXX ) and recast the large TD loan to make the mortgage payments manageable. This also impacted our family as we would need to find a temporary place to live for almost half a year until our home was completed which was not the expected plan with XXXX young children in school and daycare. 
3. Additionally, after being turned away for the extension- I continued to receive inserts in my correspondence from TD that I can reach out for assistance given COVID assistance/implications which was like getting a monthly slap in the face. Again, I had reached out to TD and they informed me that this was only intended for those that are exploring forbearance ( not clear on the communication and misleading ). 
4. In initiating the request to recast, I had engaged the TD team to start the process to recast where per contract I had the option to make a lump sum payment and my loan would be re-amortized for a {$100.00} fee. Upon initiating this request the previous sales person who originated the loan all of the sudden reaches out suggesting to explore refinancing - I found this concerning and raised questions as to why refinancing was even being suggested as an option given the refinance and recast process are very different and come with very different financial implications/costs. I was not given a concrete response as to why a refinance would be in my best interest as a customer. I proceeded with the recast option.

5. Finally, I started the recast process and paid down $ XXXX of my loan. I specifically sent in the payment for processing to apply the full amount to principle and avoid paying the larger amount for yet another month. When I received the final documents from TD they had inadvertently applied an additional payment ( P & I of the larger amount that I was explicitly trying to avoid ) and then applied the remaining balance to the principle resulting in an incorrect new payment amount ( {$2300.00} ) going forward. I had reached out to inform them of their mistake and the representative was very helpful and trying to resolve my concerns and they made the necessary corrections and reprocessed my paperwork to indicate the accurate new monthly payment of {$2300.00}. Once this was all finalized I was advised that there may be a delay in getting my next statement and that I should continue to go to the online portal and make my payments as I had been. When following those instructions the online system still prompted my for the incorrect payment amount of {$2400.00} which i paid anyway and I continue getting correspondence indicating the incorrect payment amount.

Company response to consumer: Closed with explanation