Consumer complaint received 2016-08-08
Company: CITIBANK, N.A.
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Credit decision / Underwriting

Complaint:
I have had a first mortgage with CITIBANK since XXXX XXXX, there have Never been late payments or any issues with this loan. Recently, we locked in a 2.75 % rate with Citibank for a Refi of the same property. As mentioned no late payments ever and perfect credit record and over XXXX XXXX score for both my wife and I. We already got approved in XXXX XXXX for a HELO loan on this same property by CITIBANK. 
This loan is approximately a 35 % Loan to Value of property loan based on their last year 's appraisal, so minimal risk to the bank. We have owned the property for 12 years. 
The lock in period expires on XXXX and there have been no changes or misrepresentation on my part and a better XXXX than before. They offered me a credit of .375 % and I would pay appraisal which they charged my card. Also, If i had {$50000.00} in our Citibank account before close that would give me another 1/8 % discount on interest rate. We have regular balances of $ XXXX in our Citibank account anyways. The initial Loan Estimate was dated XXXX but had errors of not reflecting my loan credits and them adding the .75 % as points not a credit of .375 % It took them until XXXX XXXX, XXXX to correct the Loan Estimate! I also provided them a bank statement they required from XXXX XXXX XXXX showing another {$29000.00} in deposits for proof to get the further interest discount of 1/8 % and I told them more would be deposited to make the $ XXXX for the discount and if I could not then the interest rate would be 1/8 % more. 
Here is initial offer email. : XXXX, I pulled up a current balance of {>= $1,000,000} ***Current payment is {$4800.00},,,, Current rate is XXXX,,,,,,,,,,, Savings over $ 500+ XXXX Arm Rates for XXXX/XXXX/XXXX for the same loan amount, no increase. 

2.875 % = {$4300.00} = .125 % cost ( ( no relationship pricing ) ) 2.75 % = {$4300.00} 2.625 % = {$4200.00} With a $ XXXX Relationship : 2.75 % = {$4300.00} and .375 % Lender Credits for closing costs ( {$3900.00} ) ///////////// payment = {$4300.00} The saving to me would be {$500.00} a month! 
On XXXX XXXX, XXXX the rep called me to tell me they had withdrawn the loan because I did not show the full $ XXXX for the discount 1/8 %! I demanded a refund of the fees I paid and written explanation for rejection which I still have not received other than this email : XXXX, Here 's exact comment from my immediate Mgr : The loan was declined because there was a 10 day letter that was sent ( NOIA ) and documentation was still not received. File was withdrawn based on that. Fees to be refunded as we can not offer the same rate. 

Thank you, NOIA means : " Notice of Incomplete Application '',,, we were sent that let on XXXX XXXX. The revised LE was not corrected until XXXX XXXX, sent to you XXXX XXXX. The banks position is the Assets stmt 's requested needed to be in house or they would withdraw/cancel loan. **I 'm just the messenger on this, I will watch rates constantly for you should they go back that level. 



XXXX XXXX Home Lending Officer Citibank , N.A . 

It is obvious that they do not want to give me the loan because they would lose {$500.00} a month in interest. I have no adverse credit and have been their customer for 8 years with excellent payment record. 
In their rate lock confirmation letter they state it can be canceled only if I dont disclose material facts or adverse change in credit, employment, income, assets or liabilities or they can not verify my eligibility or if I made false statements ... ... NONE OF THESE HAVE OCCURED and they approved me for Home equity loan on same house only Six months ago! This rate rate lock does not expire until XXXX yet they have rejected me even though I have the same loan with them since XXXX! got a HELOC approved six months ago and the monthly payment will be LESS by {$500.00} a month! 

I would love to understand Citibank logic other than illegally them not wanting to give me a {$500.00} a month less mortgage thanks

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