Consumer complaint received 2016-11-20
Company: BANK OF THE WEST
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
The following is a copy of complaint sent directly to Bank of The West, on XXXX XXXX, through their online customer service message system. Receipt was acknowledged the same day, with a promise of a response by mail after completing a review. We 're still waiting on a response. 
-- - Object : reimbursement of home appraisal fee. 
To whom it may concern, We kindly request a refund of the upfront appraisal fee collected by Bank of the West ( BotW ) to process a refinance mortgage application. We claim that the failure to complete the transaction is due to errors committed by BotW. We therefore, request a refund in the amount of {$500.00}. 

The character limit here does not allow for more than a brief summary. Should you require additional information, please provide an address, and we 'll be happy to furnish a more detailed account of events. 

The essence of the matter is that the initial disclosures and loan estimate, received XXXX XXXX, indicated a {$500.00} prepaid appraisal fee. Five weeks into the process we receive a request for an additional {$330.00}, to obtain HOA documentation. Mortgage agent, XXXX XXXX, and the Processor, XXXX XXXX, both write that these fees could not be anticipated prior to completion of the Appraisal. However, the appraisal had not identified any adverse conditions, and we had fully disclosed the nature and location of the property, which are, of course, also a matter of public record. BotW is solely responsible for overlooking these cost. 

XXXX XXXX, we declined to make the additional payment, but provided some of the required documents. As part of the email exchanges the Processor requested to " recall '' the original message requesting prepayment, and we assumed BotW now had sufficient information to proceed. On XXXX XXXX, we receive an updated loan estimate, with change of circumstance adding a {$450.00} rate lock extension fee. 

Furthermore, the request for {$330.00} was not reflective of reasonable costs. The association 's standard HOA questionnaire fee is {$170.00}, and rush processing ( {$270.00} ) only seemed " necessary '' due to BotW 's late request for this information. Other documents could be obtained free of charge. Other amounts, that unlike the additional appraisal costs had been included the loan estimates, were also very high. However, we had chosen to trust XXXX, when he told us that the actual cost would be much lower. 

The insincere insistence that the additional cost could not be anticipated, caused us to loose confidence, and on XXXX XXXX we contacted a different lender, as a backup plan. We were able to close with this lender in under 3 weeks. This with an appraisal cost of {$340.00}, none of the HOA related fees, or the much exaggerated title cost estimated by BotW. One have to question the wisdom, and ethics, of quoting, and we suspect charging, exaggerated fees, while informally quoting much lower " typical cost ''. 

Ironically, we were aware that the conditions offered by BotW were below market. However, we had hoped to consolidate a number of financial accounts, and we were willing to pay the premium mortgage rate to accomplish this goal. Now, rather than expanding, we 're forced to consider terminating our relationship with Bank of the West. 

We prefer to believe that this turn of events was due to an initial mistake, combined with inflexible processes. We hope your response to this request will affirm this belief. We certainly hope that what transpired is not the result of a deliberate, unlawful and unethical practice designed to lock-in customers to sub-market loan conditions. 

In hope of a response to this request for reimbursement of the {$500.00} appraisal fee by XXXX XXXX, 2016.

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