Consumer complaint received 2016-10-25
Company: BB&T CORPORATION
State: NC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
I applied for a mortgage from BB & T bank the first week of XXXX 2016. They had a complete appraisal and a substantially complete application packet by XXXX XXXX. Despite my aggressive efforts to answer any questions they might have, they did not approve or deny my application by a deadline of two weeks beyond the initial closing date of XXXX XXXX, 2016. This date, approximately XXXX XXXX, 2016, was a deadline at which the seller had the right not to continue the contract. The seller stated that they would extend the contract only if I agreed to pay an additional {$1400.00} to purchase the house. I was forced to agree to the extra {$1400.00} because I had already spent approximately {$1300.00} on a home inspection, an appraisal, earnest money and an inspection by a structural engineer, the last of which the bank required at my expense. As of late XXXX, the bank still had not given me an answer. As a result, I found it necessary to apply at a different company, XXXX XXXX mortgage, which approved me for a mortgage, in less than 30 days. BB & T representative XXXX XXXX told me that the bank would give me an answer as soon as possible. The only official response I have received from the bank is a government required form with a box checked that indicated that the loan was not granted due to insufficient collateral. I have asked the bank for an explanation in writing of why the mortgage was not granted. As of this date, XXXX XXXX, the bank has not provided any explanation in writing. As a result of this bank 's actions and inaction, I lost {$1400.00} due to the price of the house being raised, and I had to pay an additional XXXX months of rent at {$510.00} per month due to having to wait XXXX additional months to move into the house. I have strong reason to believe that the bank 's handling of my mortgage application is part of a pattern of illegal activity undertaken to prevent risk at the expense of mortgage applicants. It appears that the bank used an appraiser who went far beyond the appropriate task of an appraiser in order to lowball his appraisal. His appraisal of {$93000.00} was about {$10000.00} less than an appraisal done by XXXX XXXX mortgage which yielded appraisals of {$100000.00} and {$100000.00} using XXXX different appraisal methods. It is my belief, that the bank used this lower appraisal amount so that it could deny the loan due to insufficient home to loan value. It is also my understanding that this appraiser was not chosen randomly but was chosen specifically for this purchase. The mortgage officer involved in this application, XXXX XXXX, is renowned in this area for extending mortgage application periods to the extent that applicants give up and switch to another company, and in so doing incur tremendous expense and/or lose the opportunity to purchase homes. It is my strong belief that BB & T is involved in a pattern of deceptive trade and financial practices designed to insure it against risk while covering up its actions by appearing to give legitimate reasons for denying a loan. In my case, well after the closing date had passed, the bank raised the issue that the house had a carport which was unsafe and needed to be removed, but that removing the carport would decrease the home 's value to the point where the collateral would not be sufficient to make the mortgage.This opinion that the carport was unsafe, contradicted the conclusions of a structural engineer, which BB & T required me to hire and pay for. The bank would not allow me or the seller to make any arrangements to remedy the situation nor did they engage in any meaningful dialogue in an effort to resolve the situation and approve the loan. XXXX XXXX, indicated that the bank had committed wrong, and BB & T paid for the expense of the appraiser, the home inspection and the structural engineer. However, I have still lost an additional {$2400.00} as a result of their conduct.

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