Consumer complaint received 2015-08-24
Company: SANTANDER BANK, NATIONAL ASSOCIATION
State: NJ
Product: Mortgage
Sub-product: Other mortgage
Issue: Application, originator, mortgage broker

Complaint:
In XXXX 2015, I contacted Santander Bank regarding a mortgage loan. Prior to contacting Santander Bank, I conducted research on the Smart Start Program through the XXXX XXXX XXXX XXXX. I needed the grant money for the downpayment. Santander Bank is a participant in the program and I have a checking account with Santander Bank ; therefore, I elected to secure a mortgage through them. In a nutshell, the Smart Start Program gives first time homebuyers up to 4 % of the purchase price for down payment or closing assistance. The interest rate for financing a mortgage through this program was 3.75 %. If an applicant elects to use the Smart Start Program .25 % was added on to the interest rate for each percentage taken. It was decided that I would use 3 % of down payment assistance plus the 3.75 % interest rate which yielded a 4.25 % interest rate. My income which is {$81000.00} per year was within the program guidelines and the home that I am purchasing is within the programs " smart growth '' area. I was told by the loan officer, XXXX XXXX, that there was an origination fee of 1 % that was assessed by the program and that there was a {$390.00} application. Therefore, I mailed checks for the origination fee of {$2400.00} and applications fees along with my mortgage loan application and my financial documents in XXXX 2015. The checks were cashed on XXXX/XXXX/15. Thereafter, I found out that there is no origination fee for the program. Yet, I was charged XXXX and it was on my Truth In Lending Disclosure ( TIL ) and Good Faith Estimate ( GFE ). In fact the loan officer has {$2500.00} as the origination fee on the documents when the loan amount is {$240000.00}. 1 % of {$240000.00} is {$2400.00}. The application fee as quoted on the pre-settlement worksheet was {$100.00} yet I was charged {$390.00}. I was told that both items would be credited back to me at closing. Additionally, I received several different GFEs and TILs with different information on it. I was quoted an interest rate of 4.25 % on the GFE good through XXXX/XXXX/15. However, when the loan officer registered the loan on XXXX/XXXX/15, he discovered that the interest rate with the program increased to 5.25 %. 
My complaint is based on the fact that the loan officer had the documents in his possession for at least 2 weeks prior the interest rate change. I was told by the XXXX that he was supposed to register the application 48 hours after receiving it from me. By the loan officer not registering the application on time and the interest rate increasing, it not only cause the payment to increase but it threatened my ability to qualify for the program. It now brought my front end ratio up to 33.8 % when the programs threshold was 33 %. Nevertheless, a representative from the program, XXXX XXXX, told the bank to send the application in and let their underwriters evaluate it. Santander Bank never sent the application in. In fact, I was told the application was registered on XXXX then canceled and registered again on XXXX and canceled again. Santander Bank had no intention on submitting my application to the XXXX thereby causing me to lose out on {$7900.00} in grant money. 

Currently, I am in a contract to purchase a home. The seller 's attorney is holding {$3000.00} of my money in escrow. I stand to lose the home and my deposit. I made an internal complaint to Santander Bank. As a result, I was told that I would receive a refund of my origination and application fees. I have yet to receive my refund. Additionally, I am left to start over with applying for a mortgage in the middle of a real estate transaction. Closing can be at a moment 's notice. My reason for filing this complaint is to put the FDIC and the CFPB on notice of the things that are still happening to educated consumers. I am willing to provide copies of my documents including but not limited to the Good Faith Estimate and Truth In Lending Disclosures.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation