Consumer complaint received 2018-07-28
Company: FIFTH THIRD FINANCIAL CORPORATION
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On Friday XX/XX/XXXX I went to the Fifth Third Bank location at XXXX XXXX XXXX XXXX XXXX, XXXX, Florida XXXX and completed a HELOC application with XXXX XXXX. The loan process was unusually slow as I didn't get assigned a loan specialist until XX/XX/XXXX. My loan specialist name was XXXX XXXX the initial correspondence between myself and XXXX XXXX came on XX/XX/XXXX with him requesting that I provide him with XXXX 's from both of my businesses for years XX/XX/XXXX and XX/XX/XXXX also the mortgage payment from my investment property. I provided both documents the following day XX/XX/XXXX. Shortly afterwards I received an email from XXXX XXXX saying that he had finally submitted my application to underwriting two weeks after completing it inside Fifth Third Bank on XX/XX/XXXX. 

I didn't hear anything from Fifth Third Bank or my Loan Specialist for an entire month so on XX/XX/XXXX I sent an email to XXXX XXXX which I CC 'd XXXX XXXX  asking her if she heard anything about my loan. She replied the following day saying that she had received an appraisal for my home and that it was currently being reviewed by the underwriter. Red flags immediately went up because when I placed my application with Mrs. XXXX she requested that a full appraisal be done because of the extensive renovations and upgrades that had been done on my home within the last five years. Up until that point no appraiser had been inside my home so I was skeptical and confused when I was told the full appraisal had been completed and that now it's in underwriting. 

On XX/XX/XXXX I received an email from XXXX XXXX  saying that I had a lien on my home for {$42000.00} and that unless I showed proof the lien has been paid in full they would have to use the HELOC to pay off this lien at closing. Furthermore he said he would need to hear from my by XX/XX/XXXX or I will be turned down for the loan. I was initially surprised by two things the first being that I had a closing date and the second being I had a {$42000.00} lien on my home. I immediately contacted the lien holder to get further clarification they provided me with a payoff amount of {$5300.00} which I personally hand carried to the Fifth Third Bank location on XX/XX/XXXX where I submitted my loan. The gentleman made copies and uploaded the document to my file. 

I didn't hear a peep from anyone for another three weeks so on XX/XX/XXXX I sent an email to Mrs. XXXX requesting to know the status of my loan. She replied that the appraised value came back at {$350000.00} she also informed me that she had let upper management know that a full appraisal was not completed by the initial appraiser and that she had requested a full appraisal when she submitted my loan application. On XX/XX/XXXX Mrs. XXXX asked if I can send over three pictures of substantial upgrades performed in my home. I provided her with a picture of my kitchen which cost approximately {$42000.00} to remodel my kitchen with custom floor to ceiling cabinets, island and granite countertops as well as brand new appliances. The second picture was a picture of my solid oak and wrought iron custom staircase which match the stain on my custom cabinets. The last picture I sent her was a picture of my bathroom completely remodeled with marble shower from floor to ceiling as well as a 7ft glass shower, custom mirrors, marble counter tops as well as custom cabinets. 

On XX/XX/XXXX I received a phone call from a appraiser who told me that he hired by Fifth Third Bank to come inside my home to document upgrades inside and outside of my home that were not there when I initially purchased the home. We set a date of XX/XX/XXXX as a good day for him to document my upgrades. He documented a upgraded in ground spa, 1,000 square foot screened patio with brick pavers, custom staircase, totally remodeled kitchen, totally remodeled master bathroom, totally remodeled half bathroom, totally remodeled upstairs bathroom as well as an ADDITIONAL fifth bedroom which was also added. After documenting all of the upgrades I received an email from Mrs. XXXX saying that unfortunately the additional bedroom as well as the numerous other upgrades didn't add any value to my home so the initial appraised value of {$350000.00} will not change. 

I was in shock and disbelief I immediately drove to the Fifth Third Bank location to view the second appraisal. Before I turned over the first the page I noticed that the square footage and the bedrooms of my home are incorrect. They had my home listed as a four bedroom two and one half bath with only 2,601 square feet. When my home is actually a 5 bedroom two and one half bath with 2,844 square feet. Mrs XXXX said she let management know that she didn't have much faith in the second appraiser seeing that he didn't even have the correct amount of bedrooms or square footage. Management told her the correct square footage and bedroom count still wouldn't change the appraised value. I was at a loss for words especially when I found out that the appraiser used two homes with the lowest sales prices in my neighborhood compared to the two homes with the highest sales price in my neighborhood. 

Even though the way my home appraisal was conducted was a travesty. Not to mention Fifth Third Bank would not add value to my initial appraisal after documenting extensive upgrades and remodeling done on my home. The payoff on my home is only {$290000.00} which means I still have {$65000.00} in equity using the low ball appraisal of {$350000.00} that was provided. Can you believe I was still denied the HELOC with the reason stated " Value or type of collateral not sufficient '' for not being approved for the loan. Isn't the entire premise of a HELOC is for the home being collateral? How is {$65000.00} in equity not enough for you to offer me absolutely zero line of credit with an XXXX credit score. 

My opinion is that my case is the poster child for discrimination!!!

Company response to consumer: Closed with explanation