Consumer complaint received 2020-01-13
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
When my husband and I decided to purchase a second home in XXXX XXXX, CA, we contacted several lenders, including Bank of Americas XXXX XXXX, who is a personal friend of our realtor, XXXX XXXX. 

XXXX  package was far better than all the other lenders, which included a loan professional weve worked with many times named XXXX XXXX. XXXX also works with B of A, but said he could not match XXXX deal. We moved forward with XXXX and immediately provided him information on our 10+ investment properties, rental income, equities, other assets, etc. He was emphatic that we would sail through the loan process. We felt confident entering into a 30-day escrow, a requirement of the no-nonsense seller. 

XXXX deal was a 3-year ARM@ 2.25 % with 20 % down on a {$670000.00} purchase price. In addition, he guaranteed my husband we would receive a {$3200.00} credit and XXXX  fees. XXXX provided us with a Home Loan Prequalification letter and we opened escrow with XXXX XXXX XXXX  in XXXX XXXX. 

In about one week, XXXX informed us that we actually couldnt get the loan wed been promised both verbally and in writing. The best he could do was a 7-year ARM@ 2.875 %. In addition, wed also need to increase the down payment to 30 %. ( Later it was again changed back to 20 % down. ) Apparently XXXX made miscalculations. We would have jumped ship on XXXX, but we had no time to find a different lender. This all seemed, and still seems, like a textbook case of bait and switch. 

Many things started going haywire. Nobody knew the actual closing date. XXXX XXXX had one date, the seller had another date, and we had a different date. XXXX XXXX said XXXX was responsible for this sort of detail, but he had never been in communication with them. He had still another date, which hed never communicated to any involved parties, but at least we all then had the same date. 

We wanted to make sure our down payment was in place so as not to put the close in jeopardy, so a few days before the expected closing, we contacted XXXX XXXX saying we were ready to pay the down payment. XXXX XXXX informed us they had not received any sort of documents from Bank of America. Still no communication from XXXX to XXXX XXXX. 

We contacted XXXX and learned that that there were problems with the appraisal. Where was it? Had it been done? We contacted XXXX manager, XXXX XXXX. We informed Mr. XXXX of the many misrepresentations by XXXX, and also that we had no appraisal report and were due to close in a few days. Mr. XXXX said hed look into all the issues, and work to get the appraisal report. After that he stopped returning our calls. 

We were told at least 10 times in conversation and in emails the appraisal would be coming tomorrow and then the documents would be drawn up and hand delivered to XXXX XXXX XXXX in XXXX XXXX. As we waited days then weeks for the appraisal report, we had to release contingencies with no appraisal. We asked the seller for an extension which they granted, but once that extension passed, we were completely out of compliance for nearly a week. Obviously, this left us absolutely vulnerable to losing the house and our deposit. 

Both the sellers agent and the title company mentioned that theyd not seen a more disorganized process than ours. Once we closed, we contact XXXX XXXX manager, XXXX XXXX. We wanted to be compensated for the difference between the promised loan and the actual loan. He said Bank of America would refund our appraisal cost, but that there wasnt anything else he could do. 

By the way, the {$3200.00} credit wed been promised by XXXX didnt materialize. Instead we received only {$1400.00}. NOTE : XXXX repeatedly promised my husband that even though the loan had changed, the credit was safe. No doubt about it. Another untruth. 

As the miserable process dragged on, and friends asked us about the Tahoe house, we told them about all the misrepresentations and problems with Bank of America. Without exception, every single person we told of these problems said that they had a bad history with Bank of America and would never do business with them again. 

We are submitting this grievance for two reasons. One, we want Bank of America to honor the loan we were promised, which comes to {$9000.00} in additional interest over three years. Second, we think Bank of America should be investigated by U.S. securities watchdogs. 

Do not hesitate to contact us as we are available to discuss anything mentioned in this letter.

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 monetary relief