Consumer complaint received 2016-09-08
Company: CITIBANK, N.A.
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Credit decision / Underwriting

Complaint:
I am writing about the mismanagement of my home loan file since the inception of my application. Based upon Citibank 's errors and negligence I nearly lost my first home, was made to suffer an extreme and unnecessary amount of stress, and have been forced to take a much more expensive home loan. When I submitted my offer on my home, based on Citibank 's consent and their representations about the strength of my application, I removed my loan contingency clause in the contract, thus putting me at jeopardy of losing {$25000.00} during escrow. When my offer was accepted and it was time to close the contract within the scheduled time frame, Citibank went utterly silent. My closing date came and went with no confirmation as to my loan approval. Nor did Citibank provide any confirmation during a 14 day extension I was able to negotiate with the sellers.As i put together my offer for the house, I initially submitted an offer with my first loan amount in which I was pre-approved for {$460000.00} but after I learned the ballpark amount the owners were looking for, XXXX XXXX ( loan officer ) was able to increase my loan amount by {$22000.00}. I received multiple assurances from XXXX as to the strength of my loan application. After she sent me updated pre-approval with my new loan amount ( {$480000.00} ) she followed up with an email to me stating the following : " I hope you are able to convince seller/listing agent to accept your offer. '' I therefore submitted an offer on a house and removed my loan contingency with her verbal consent. After I submitted my initial offer, she followed up with a phone call to the listing agent and assured her, and the owners, of the validity and strength of my loan. Specifically, her XXXX XXXX, 2016 email stated " I just left XXXX [ listing agent ] another voicemail letting her know that you are a solid qualify and motivated buyer and we should n't have any issue with loan. I told her to call me if she or the seller have any questions regarding your loan profile/qualification. '' When the owners chose my offer, XXXX due to the increased loan amount and the follow-up by XXXX XXXX advocating the strength of my loan, XXXX they and I had a good faith belief that the process would be smooth, efficient and timely, as promised. We had been given every expectation that Citibank would be able to finalize the loan by our XXXX XXXX, 2016 closing date per XXXX XXXX 's email on XXXX XXXX, 2016. The closing date, XXXX XXXX, 2016, passed and I never received an answer from Citibank. Among the various errors and miscommunications, the lack of urgency and responsiveness from Citibank during my 30 day escrow period, with regards to the final approval, was particularly negligent. On XXXX XXXX, 2016 I finally received an email from XXXX XXXX XXXX at Citibank stating : " We heard back from the review committee and the Underwriter today and unfortunately the loan has been denied ... .the reasons for denial were ... 1. Insufficient income total obligations. 2. Excessive use of credit. I am sorry for this news, but let me know if you have any questions or want to discuss live. '' Again, this email was sent XXXX full business weeks after our closing date. By the end of the week of XXXX XXXX, 2016, I realized I was at jeopardy of losing my earnest money deposit in escrow of $ XXXX. Because of Citibank 's lack of responsiveness, I had to scramble to find another bank. That bank was able to approve my loan during my 14 day escrow extension. Unfortunately, due to the short turn around time ( and since I never had a final answer from Citibank, despite the strong, written pre-approvals ), I was forced into a significantly more expensive loan, with a much higher interest rate ( 4.3 % ). I have been harmed by Citibank 's errors, misinformation, delays and general negligence during my entire home-loan process.

Company response to consumer: Closed with explanation