Consumer complaint received 2022-11-17
Company: TD BANK US HOLDING COMPANY
State: PA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
In early XX/XX/2022 I walked into my local TD bank branch as I do several days per week to make commercial deposits for my business. After speaking with some of the managers there ( whom I have come to know very well ), I was referred to TDs loan department after they learned I was perusing a construction loan. 
A loan officer, XXXX XXXX XXXX XXXX, reached out and we discussed my intensions. My goal was to finance the construction of a new single-family home and borrow a bit more than the construction budget, to get some cash back at closing. I told XXXX we purchased land the previous year for about {$740000.00} and owned it free and clear. We had our home completely designed and settled on a builder and contract of {$920000.00}. I explained that based on research and other consultation that we expected the property to appraise between $ XXXX $ XXXX. Based on that, I explained my goal was to have a loan amount of around $ XXXX - $ XXXX to cover the construction cost and get a few XXXX dollars back at closing but maintaining at least 80 % XXXX. XXXX assured me that TDs construction product could do this and he explained how the process worked with TD and answered other questions. 
At this time, I was entertaining a few different banks that were able to accomplish my goals and I was learning their process, fees, and rates. Although TD did not have the cheapest costs, I was told they could accomplish my goals and I felt comfortable with them considering I have other TD products for years including 4 business checking accounts for two companies, a business line of credit, 2 personal checking accounts, and a personal savings account all with TD. 
A few days after speaking with XXXX, he provided a breakdown of what we discussed via email and even provided a TD rate sheet showing their costs, the loan amounts we discussed, and the desired cash back. This correspondence and copy of the fee sheet can be produced upon request. A few days later, in late XXXX we officially started the process and applied, and disclosures were sent to me with a loan amount of $ XXXX and cash coming back to me, the borrower. During the first week of XXXX, I received a call from XXXX telling me that TD may not be able to give cash back at closing like he originally said but he was working with is manager and underwriters to double check what he was told and see if they could still do it. At the time, I was not too concerned because I could still go to one of the other banks I was in talks with to accomplish my goal. A few days later I got an email from XXXX stating that they found a work around and were able to increase the loan about back to $ XXXX and I received a disclosure to match. XXXX called me right after to explain that I just need to create and record a lien in my name in the amount I wanted to get back. This way it would not technically be considered cash back to the borrow but a payoff to myself and I could still accomplish my goals. Naturally I was skeptical, but he assured me his manager and underwriting both approved this and he also stated this in an email which made be believe this info was true and accurate and it continued to reflect in the disclosures. XXXX also told me that they would provide a credit for me since I would have to come out of pocket to cover the costs to record the lien which was not anticipated. 
My appraisal was not ordered until XXXX for some reason, but it did come back at a value for $ XXXX. It was less than expected so XXXX reconfirmed the max loan amount I could have so I knew how much of a lien he would have me record. He advised that I should record a lien in the amount of {$220000.00} which would allow me to pay myself back the maximum amount. XXXX prepared a mortgage deed and loan document with myself as the lender and borrower to be recorded with the county. He provided these documents to me and instructed me to have them notarized and record these items and then provide a stamped and recorded copy back to him for underwriting. He even verified the times and costs for me to go do this in person with the XXXX XXXX Recorder of Deeds. I provided the last of the documents requested of me and I was told my loan was approved and the disclosures matched what was discussed and showed the payoff to me for {$220000.00}. Weeks later, closing was eventually scheduled for the end of XXXX. 
XXXX hours before closing XXXX called me saying there was a problem and TD was not able to payoff the loan they had me record and they could no longer allow me to receive any funds over the construction budget. Naturally I was angry and wanted to know what happened and I requested to speak with upper management. XXXX explained that although my loan was approved it needed the final clear to close. Another underwriter did not approve the lien to be paid off during the clear to close process despite all the confirmations previously received. I spoke with XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX. Both managers said they spoke to other internal management and I was told no one was willing to XXXX the loan as it was disclosed to me and previously approved. They both told me that the company would be violating a fair lending law if they did so but would not cite such law. This explanation was also given to me via voicemail which can be produced. 
For several months TD bank disclosed both verbally, written, and in a loan commitment on an approved loan that I would be able to access {$220000.00} in the form of a cash to borrower or paying off a lien. I have made other financial decisions during this time such as budgeting other items for our new build, installing a pool, and even investment decisions to keep other funds vested in anticipation of accessing this money. I am in a completely different financial position than what I planned on for XXXX months solely due to TD Banks negligence breach of fiduciary duty. I was unable to go to another bank that could accomplish my goals because by the time this issue came up, the market had changed so dramatically that rates would be almost double and it would put me in an even worse financial position to not close the loan at a reduced amount with TD. 
While I could complain about the inability to get someone on the phone every time I called or the way I was spoken down to by management as if I was the one causing problems, my main concern is to try and find a resolution that allows me to meet my original goal of accessing the {$220000.00} that was approved. I understand mistakes happen however I believe there is duty to do right by the customer and fix a mistake especially when such negligence is demonstrated in a situation like this one.

Company response to consumer: Closed with monetary relief