Consumer complaint received 2016-08-19
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Settlement process and costs

Complaint:
I had a {$300000.00} Heloc with Bank of America from XXXX until XXXX XXXX, when the Bank of America XXXX XXXX Branch representative suggested that I roll-over to a new Heloc loan to increase the amount to {$420000.00}. 
I told the Bank Rep that I was planning on selling my home in the next few years, so I asked if there were any Early Cancelation fees or penalties. He responded that there was a {$450.00} Early Closure Fee if closed within 36 months after opening / SEE ATTACHED - Clarity Commitment, Pay-Off Letter with Early Closure Fee of {$2700.00} dollars and the Heloc Note Section 15-G Early Closure Fee paragraph. In XXXX XXXX, when I asked about the other fees mentioned like Gov't taxes, attorney, etc., the Bank Rep said that he did not know what those fees were and did not know the amounts, but that the Bank usually did not charge these additional fees if you closed the account early. 
When I signed the new Heloc in XXXX XXXX, I requested a Hud-1 closing statement showing all the loan fee including the Early Closure fees, which bank of America did not provide because they said that the Heloc was not a Mortgage. The bank rep said that because I was a Preferred Platinum Customer, I would only be charged the {$450.00} " Early Closure Fee '' and that the other fees would be waived if I closed the account early. 
Now that I have sold my home ( closed on XXXX XXXX, XXXX ), I received the Bank of America Pay-off with an Early Closure Fee ( penalty ) of {$2700.00} ( equal to {$450.00} plus {$2300.00} of undisclosed and unexplained charges ) ... and Bank of America ( after 10 phone calls and a visit to the Branch ) can not provide me with a statement showing a breakdown of these charges that were supposedly paid and were never disclosed. 
After 10 phone calls over that last 6 weeks, I finally spoke with Bank of America Heloc Dept. manager ( name XXXX / no last name given ) and he stated Bank of America has a National general policy that applies to all the States, even though certain States like Florida and New York have higher Gov't transfer taxes, etc. ( basically not all the States have the same charges ), and that Bank of America can not list these charges even though he says they were incurred. According to this Heloc Dept. Manager, Bank of America does not consider a Heloc the same as a Mortgage, and therefore, they are not required to provide a Hud-1 and/or a Good Faith Estimate with the detail of all the charges. 
My understanding is that a Heloc is a Mortgage and as such it is regulated by both the Federal Truth and Lending Act, RESPA and HOEPA, which requires a " Good Faith Estimate '' HUD-1 statement detailing the charges related to the mortgage and any early cancelation penalties. 
In XXXX XXXX, I did not receive full disclosure that the Early Closure Fees / penalties were {$2700.00} and not {$450.00} ( no disclosure of the additional {$2300.00} ) ; and had I known I would not have rolled-over my existing XXXX Heloc into the new XXXX Heloc. 
Furthermore, I checked with XXXX XXXX and they do disclose the Early Closure Fees and Penalties / SEE ATTACHED - " Your Guide to XXXX XXXX 's Home Equity Line of Credit Plans - page 4. ( 2.4.1 ) / Disclosures from Lenders ''. 
If XXXX XXXX is providing Consumers with full disclosure of Early Cancelation Fees on Helocs, then why is Bank of America not providing the same disclosure that is required by Federal Law? 
Also, this is clearly not an isolated case, but it 's the common practice of Bank of America to deceive consumers in order to standardize and simplify their procedures. 
I kindly request that Consumer Financial Protection Bureau ( CFPB ) look into why Bank of America is not providing consumers with the proper full disclosure of " Early Cancelation Fees '' on their Heloc Mortgages as required by Federal Law.

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