Consumer complaint received 2022-07-08
Company: BANK OF HAWAII CORPORATION
State: HI
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage

Complaint:
XXXX XXXX Bank of Hawaii ( BOH ) regarding misinformation, false representation of rates and terms, negligent notary practices, processing of loan without complete signatures and incomplete agreement to terms of the loan against consumer 's wisheXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Vice President and Banking Center Manager at BOH, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX, Relationship Banker 1, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Senior Relationship BankerXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Beginning of XX/XX/XXXXXXXX XXXX discussed loan options with XXXX and desire for 30 year fixed rate loan on HELOC. XXXX said BOH could offer this and the current rate was 3.7 % which was valid for the month of XXXX. XXXX  was not able to move forward at that time and XXXX offered that XXXX  could call back the last week of XXXX to check the XXXX rate and if it was going to increase significantly then XXXX  would apply during the last week of XXXX to secure the rate of 3.7 %. 

XX/XX/XXXX approx XXXX XXXX, incoming phone call- XXXX to XXXX XXXX quoted XXXX  the availability of 30-year HELOC offered by Bank of Hawaii ( BOH ) with a rate of 3.8 %, which was quoted to be good for the month of XX/XX/XXXX XX/XX/XXXX email exchange between XXXX and XXXX XXXX  reached out to XXXX via email to proceed with the loan at the XX/XX/XXXX rate of 3.8 % to which XXXX replied the rate had increased prior to the close of XXXX and would now be 4 % for a 30-year term loan XX/XX/XXXX XXXX XXXX, in person meeting- XXXX and XXXX BOH XXXX XXXX XXXX. XXXX, XXXX : During this meeting, XXXX provided incorrect information regarding the appraisal requirements, initially stating there was no requirement. XXXX also said there were no closing fees. XXXX clarified these items and XXXX reviewed the terms and available rates and conditions and said there would be an appraisal with {$600.00} due up front out of pocket and there would also be closing fees. 

XX/XX/XXXX XXXX, email from XXXX to XXXX " Your application is in its last stage of being reviewed with our underwriter supervisor for final reviewed. Our underwriter is inquiring if youd like to max out at {$400000.00}? If not, we can stick to the {$300000.00}. '' XX/XX/XXXX XXXX, email from XXXX to XXXX and XXXX  " Also in regards to the option of increasing the loan to XXXX, is it possible that the XXXX is the credit limit and we just do the payoff of the current HELOC and then later I can take more out or will the entire amount chosen be disbursed at the time of the closing? '' XX/XX/XXXX XXXX, email from XXXX to XXXX  " For increasing the amount to {$400000.00}, we can pay off the existing HELOC then leave the remaining balance as an open line of credit for you guys to use when you need. Youre not obligated to have that remaining amount disbursed to you immediately. '' XX/XX/XXXX XXXX HST, 27 mins, incoming phone call XXXX called to review terms of the loan and collect information. XXXX said the additional {$100000.00} available XXXX would have " the same XXXX as the {$300000.00} '' and that opened up a lengthy discussion regarding all of the terms to which XXXX  took handwritten notes. Essentially the loan would have a 1.75 % interest only period for 3 years followed by a fixed rate of 3.85 % for the remaining 27 years. Additional funds could be borrowed for the first 10 years of the loan up to the qualified loan limit of {$400000.00} and payments on these two portions of the loan would be applied separately. 

XX/XX/XXXX XXXX HST, in person, XXXX and XXXX, BOH XXXX XXXX XXXX. XXXX, HI XXXX XXXX and spouse, XXXX XXXX, met for signing. XXXX had questions about the terms and rates of the loan. Documents provided to XXXX  did not include all of the documents that were being signed. 

XX/XX/XXXX and XX/XX/XXXX Received calls and emails from both XXXX and XXXX regarding missing information and discrepancies regarding the rate. XXXX did not have the information from the state ID that was provided during the signing for the notary portion requirement. When XXXX provided the rate information to XXXX that XXXX previously provided to XXXX XXXX let XXXX know the information was incorrect. XXXX then emailed both XXXX  and XXXX  and later received a phone call from XXXX stating that the information he provided previously was incorrect and the rates offered were invalid. At this point it became unclear what rate was being offered. 

XX/XX/XXXX XXXX XXXX, email from XXXX XXXX XXXX  : " XXXX, Can you get me your drivers license number with the issue and expiration date also. Than You '' XX/XX/XXXX XXXX XXXXXXXX XXXX sent email to XXXX and XXXX : " Hi ___ And ___. This isnt making any sense at all. ___, I got your voicemail which was basically the same voicemail that you had left before where are you are asking again if I want a fixed rate or a intro variable rate so Im not sure if you got my voicemail in between the two you left for me but here is a picture of the notes that I took when I spoke with ___ and he corrected all the information I had previously been given. Can you please clarify what is going on? 

According to ___ the XXXX has a 1.75 interest rate for the first three years and then after that itll automatically enter a fixed rate for the remaining 27 years and that fixed rate is 3.85 %. Any additional money borrowed can be borrowed for up to 10 years and whatever the difference is between XXXX and the principal remaining is the amount that we can borrow for 10 years. If we borrow something during the first three years the rate on that amount is 1.75 % and its an interest only interest rate. From years three forward the rate will be variable and go according to whatever the market is like for example currently when I spoke with ___ he said it was 4.5 to 5.7. The amount that is used to pay off our current HELOC the XXXX is separate from anything additional that we borrow and these are going to operate as almost like two separate loans and we will make two separate payments. For example one note will have a number and that will be like the fixed rate HELOC portion and then note number two will be the line of credit for example we want to do a remodel or we have an unexpected expense and that is the portion that has the possibility and potential of a fixed variable rate if we dont pay it off within that first three years during the intro rate.. Just to reiterate that line of credit can only be borrowed on for the first 10 years starting from the date that the funds are disbursed. But we have the entire life of the loan to pay back that money. '' XX/XX/XXXX XXXX XXXX, 5 mins, incoming phone call Phone call from XXXX  to XXXX letting XXXX know the notes taken on XX/XX/XXXX during the phone call with him were incorrect and he provided incorrect information during that time and there was no such offer. XXXX followed up with a voicemail to XXXX letting her know to just do whatever because there was no consistent information being provided. 

XX/XX/XXXX XXXX XXXX, email from XXXX  to XXXX  : " Sorry ___, But the loan department is wondering if you want to have a fixed rate loan option because the person who originally helped you said you wanted to fix it at 4 %. I know when we did the signing you guys decided not to do that but before they finalize the loan they just want to make sure. '' XX/XX/XXXX XXXX XXXX, 4 mins, incoming phone call Received call from XXXX and he asked again about the form that needed signed and what rate and terms were desired. XXXX let XXXX know that everything was signed on XX/XX/XXXX and they should have received all signatures at that time. Also, since there was still confusion regarding the terms on the loan even though this has been addressed repeatedly, XXXX stated, " I do not feel comfortable about this and do not want to proceed at this time. I need to think about this. '' XX/XX/XXXX XXXX received email notification from XXXX credit monitoring that a new account with BOH was opened. XXXX logged into previous bank that had the HELOC loan and was unable to locate the loan. XXXX  then called the previous bank and verified the loan was closed when they received the pay off on XX/XX/XXXX.

Company response to consumer: Closed with explanation