Consumer complaint received 2021-03-23
Company: SANTANDER BANK, NATIONAL ASSOCIATION
State: PA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/2021 : My husband and I ( we ) started an application for a HELOC ( 2nd mortgagee ) through Santander Bank requesting {$100000.00}. Completed and signed the application including the 'Appraisal/Property Valuation Report Delivery : Your Right to Waive ', Form 4506-T : Request for Transcript of Tax Return ( one for my husband and I each ), an 'Authorization to Release Information to Santander Bank , N.A. ', and allowed them to pull a credit score on both of us. 

XX/XX/2021 : I opened a checking account as this was supposed to decrease the rate of the HELOC to 3.5 % XX/XX/2021 : Received first counteroffer of {$100000.00} with a rate of 4.5 %. We accepted and immediately provided requested documents : Social Security Income for both, Pension Statement for my husband, past two years 1040 's with schedules and attachments, most recent ( first ) mortgage statement, most recent real estate tax bills, homeowner 's insurance documentation, documentation demonstrating student loan accounts were satisfied, and the most recent monthly statement of a single credit card which was being required to be paid off with the HELOC. 

XX/XX/2021 at XXXX : The loan officer called. He noted all documents were in order and the drive-by appraisal was ordered. Everything should move through quickly from here-on in. 

XX/XX/2021 at XXXX : A 'Loan Processor ' called. 
Until this point, we had been dealing with a different person. When asked about the difference, we were told the first person was the 'loan officer '. We never heard from the 'loan officer ' again, despite requests from us and the 'loan processor ' to speak to him regarding the terms of the loan. These requests are in writing ( email ). 
When the loan processor called, she informed us that the new counteroffer was {$62000.00} and still required the single credit card to be paid by them. When asked why the decrease, we were told the 'drive-by appraisal ' came in at {$270000.00}, which is much lower than we estimated at {$320000.00}. 
The only option we were given was to have an appraisal appeal and have someone come in the home and do a full appraisal. We were given the 'weekend ' to think about it. 

XX/XX/2021 at XXXX : We asked to have the information placed in the 'workspace ' via an email to the loan processor, but this was never done. We also told the loan officer and processor to go ahead with the counteroffer as is. We explained we could not have someone inside our home secondary to COVID and my health issues ( I am on two XXXX  agents  ; this does NOT imply XXXX ). We reiterated that we wanted the rate to be fixed and what did we need to do to ensure that happened ; this never happened. Finally, we wanted to ensure the 'tasks ' were viewable in the 'workspace ' so we could upload the requested documents for closing. 

XX/XX/2021 at XXXX : Sent another email to the loan processor and the loan officer, without reply or action. Noted that we completed the requested tasks for the counteroffer, but again, would like the counteroffer placed in the workspace so we can have a copy. We never received a copy. 

XX/XX/2021 at XXXX : The loan processor called and left a message that she found out there is another option to do an appraisal dispute. 

XX/XX/2021 at XXXX : The loan processor called again. She was going to be sending us documents regarding appraisal appeal. She 'just found out that there were 'non-contact methods ' of performing an appeal appraisal due to COVID ( when she called XX/XX/XXXX ). She went over those and told us no one would have to come into our home. She was going to place the appraisal and associated documents in the 'workspace ' so we could review what was required. 

XX/XX/2021 : We pulled the records from the workspace, reviewed, and completed the appraisal appeal. The appraisal was incorrect ( 3BR, 2BA -- > our house is 4BR, 2.5BA ). Overall square feet was also incorrect. Finally, we have had many updates, and believe the first appraisal undervalues our home. Notified the loan processor and loan officer of our intent to proceed with the appeal. 

XX/XX/2021 : The loan processor acknowledged our email and would await our paperwork. 

XXXX XXXX XXXX : We submitted the appraisal appeal and all documentation to the 'task ' area of the 'workspace '. 

XX/XX/2021 : The appraiser called to set-up an appointment to enter our house to perform a full in-house appraisal. We explained that we did not authorize a full interior appraisal and could not allow them in our home due to my health and COVID. We explained the type of appraisal that we did authorize. The appraiser stated that the bank probably meant to order a desktop appraisal, which is a COVID accommodation, but did not order it correctly. She stated she would send back the order, but in the interest of time, it would help if we would also send a message to the contact at the bank to fix it. 

XX/XX/2021 at XXXX : We emailed the loan processor and the loan officer. We explained the above situation and requested a new order be placed. 

XX/XX/2021 : The appraiser called. They were at our house doing an exterior appraisal. They would like us to send interior pictures in jpeg form to their email. They were going ahead with the desktop appraisal as they got 'permission ' from the third party that provides them with instructions, although they had not yet received a new 'order '. 

XX/XX/2021 : The loan processor called and stated the appraisal review ( at the bank ) had questions about the pictures on the appraisal and needed explanations. She said they would be reaching out to us to send them pictures. We explained we sent over 100 pictures directly to the appraiser. The loan processor seemed very confused and stated she would simply put in a whole new appraisal order if this wasn't cleared up by Friday ( XX/XX/XXXX ). 

XX/XX/2021 from XXXX to XXXX : Emails exchanged with the appraiser to see if any additional pictures or explanations/documentation was needed. The appraiser stated that they could not include all pictures in their report, so the bank seemed to be missing information, but it was all included in the explanations. The appraiser stated everything should be fine. 

XX/XX/2021 : The appraiser was requested to perform a XXXX video to ensure our house, of which we sent pictures, was actually our house. We completed this XXXX to demonstrate we were not lying. 

XX/XX/2021 at XXXX : Received a call, with a follow-up email, from the loan processor. The appraisal came back at {$300000.00}, which was much more on-target with the value of our home. The loan processor was requesting Santander Bank be added to our homeowner insurance as a 2nd mortgagee before closing ( now ), and before the next step. She preferred it to be emailed to her, but if they wouldn't do that, we could email it to her. 

XX/XX/2021 : Sent the homeowner 's insurance binder demonstrating Santander Bank as the second mortgagee to the loan processor. Did not receive a reply. 

XX/XX/2021 at XXXX : Received a call from the loan processor ( and a document link to the counteroffer document ). The bank made a counteroffer ( attachment ) based on the new appraisal ( and all previous documentation ) of {$85000.00} with a rate of 4.75 %. In addition, the single credit card discussed before would need to be paid off with the loan. We did accept this offer. 
Based on this, we needed to send a copy of our real estate tax bills, a 1098R for the first mortgage, and a pension letter for my husband. We explained that we sent the tax bills and a pension statement as requested previously. 
The loan processor told us the real estate tax bills were state bills and they needed county bills. We explained that we do not have state real estate taxes and if she looked at the bills we sent, it states county in the top right-hand corner. She did confirm this. We did have the most recent bill ( which is not even due yet, but we did pay ) and we further submitted this. 
The loan processor further told us that the underwriters would not accept the pension statement because it was a check stub. We explained that it was a statement that is only received when there is a raise, and we do not get 'check stubs '. I did have a letter that we conceded to send. 
We did not concern ourselves with arguing that the first mortgage sends a 1098, and not a 1098R, as it was obvious there were difficulties in what was being required. At this point, we began to suspect that something was amiss. 

XX/XX/2021 at XXXX : The loan processor called and left a message. She was giving us an update that the latest documents were sent and she was just waiting for the final word on closing. 

XX/XX/2021 : Sent an email to the loan processor and the loan officer. We stated we got her message from last week and we have not heard from anyone regarding closing and all documents have been submitted. The process has been in play since XX/XX/XXXX. We also, again, requested information regarding the fixed rate issue. 

XX/XX/2021 at XXXX : Received a phone call ( and a concurrent doc link for the counteroffer ) from the loan processor. The counteroffer ( attachment ) was for {$14000.00} in a 36-month term at 7 %. When we asked the loan processor what happened, she stated this was a result of the debt to income ratio and the loan to value ratio. She further stated that the debt to income ratio can only be accepted up to 50 % and ours was 48 % ; the loan to value ratio can only be accepted up to 70 % and ours was 67 %. 
We stated that these have always been at these values since we started this process XX/XX/XXXX, and nothing has changed. She agreed. We stated that the counteroffer, therefore, should not change based on something that has been static. She agreed. She stated she, too, was confused. 
She wanted to know if we were going to accept it. We said no. 
She wanted to know if she should close it. We said no. 
She wanted to know what she should put in her notes. 
We asked if there was anything else that had changed in the counteroffer indicating why the huge change occurred. She stated there was not. We told her that this, then, was a blatant demonstration of discrimination for age ( husband ) and XXXX ( me ). She could put in her notes, leaving the account/application open, that we have done everything asked and nothing changed, but obviously we were being discriminated against on the basis of age and XXXX. 
She informed us that if no action was taken on the account/application, eventually it would close. We said that we understood that, but we would be pursuing discrimination as there was no other explanation for the drop in lending offer.

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