Consumer complaint received 2017-04-10
Company: REGIONS FINANCIAL CORPORATION
State: FL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
Dear, Sir/Madam This complain is about Mortgage Application with XXXX. 
I has filed an application for refinancing my home with XXXX on XX/XX/XXXX and they had Quoted a rate of {$780000.00} with an interest rate of 2.750 % with .250 % discount. 
And we were told we are closing on XX/XX/XXXX at XXXX and the documents were send to me on XX/XX/XXXX at XXXX upon reviewing the rates were change to this 3.25 % with 1.75 % discount points. 
After this please see the below conversation with the bank. 

Hello XXXX, XXXX, XXXX, XXXX and XXXX We are scheduled to close tomorrow. I have just received the documents, and I see a huge discrepancy over the points. 
Initially we have agreed upon {$780000.00} with an interest rate of 2.750 % with .250 % discount. Please read the email sent by XXXX XXXX confirming the same. 
Attached are the document that were sent in XX/XX/XXXX. The documents sent to me today state an interest rate of 3.25 % with 1.75 % discount points. 
There seems to be an error with the figures, I would like to get the old rates confirmed in writing again before we close. Sorry to put you people thru any inconveniences, I have been asking for these documents for quite a few days now, it was sent to me at the last moment. I have also scanned the old documents for you to compare. The appraisal amount on my home was also undervalued by XXXX and appraised at XXXX. After I questioned it and told XXXX why the other banks appraised at XXXX, which I proved it to him by sending the copy 's from the other bank appraisal, it was redone and therefore adjusted to XXXX. We seems to be having problems every step of the way. Could someone please look into the matter and get back to me ASAP. I would like the rate promised to me to be honored, and to reschedule the closing for next week if all terms are agreed upon. 
I will offer an explanation for your pricing question : A mortgage is a commodity priced to market every day - sometimes more frequently with intraday rate adjustments in a volatile market. Customers elect to lock or float at application. You elected to lock your rate. XXXX has been honoring the rate on your loan at 3.25 % for more than 6 months. The rate was locked on XX/XX/XXXX and has been extended since. The fee to extend rates is costly - we have subsidized 1.25 points as part of a total of 3.00 points for extensions. Our goal is to earn 1.00 Origination on every loan. As you can see, we have forfeited this yield in order to honor the interest rate for you. 

The choices at this time are XXXX Close at 3.25 % with XXXX points today XXXX The current rate expires on XXXX. If the pricing on XXXX is worse, you get the new rate with market points ( potentially no points. ) If the rate on XXXX is better - all Lenders are required to use the " worst case '' scenario and the XXXX with XXXX points remain. 
& gt ; If we let the rate expire on XXXX and wait 30 days - we can relock at the then market rate on the 31st day and none of the extension fees apply. Obviously, the risk is where the market rate will be in 37 days. 
Hi XXXX, Thanks for you explanation but the lock rate was 2.75 % with XXXX points discount for 60 days please see attached. Not 3.25 % with XXXX points. And as you know I have forwarded all the correspondence I have with XXXX there was no delay from my side at I had complied with all the request from your bank. If there was any changes done why was I not notified about this. 
You are correct however the pricing changed once the appraisal was received. The independent appraiser assigned a value that was lower than anticipated by you and XXXX. I wo n't review the entire appraisal history as we all know the disappointment - however the Loan to Value increase triggered the rate change to 3.25 %, which was disclosed to you. The extension fees to continue to honor

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