Consumer complaint received 2016-12-29
Company: FIRST HORIZON BANK
State: NC
Product: Mortgage
Sub-product: Other mortgage
Issue: Settlement process and costs

Complaint:
I am a veteran. I had a " XXXX '' XXXX with First Tennessee Bank. At the completion of construction ( CO passed ), we had difficulty closing the permanent loan with First Tenn as we relayed to them several items not completed but had been paid for already by the bank. The bank 's duly designated inspector found no defects nor any issues with the construction. Closing was delayed and a second appraisal ordered by the bank. Throughout the construction, the bank colluded directly with the builder and moved money between line items without proper credits, documentation for invoices, nor sufficient communication with me. During the wait for the second appraisal, we found several construction code violations ( XXXX ), and Major Defects ( XXXX ) included in a punch list of XXXX items. The bank distanced itself, and I sought permanent loan financing elsewhere. During the search for new loan financing, the builder filed a lien on the home ( after we had taken posession of it while still working " with '' First Tennessee, and prior to permanent loan financing ). First Tennessee then commenced a series of negligent errors costing us valuable time and damage to our credit rating including offering a " blackmail '' version of a " loan extension '' initially ( focused on relieving the bank of any liability due to their negligence ), followed by a series of " after the fact '' ( back dated XXXX loan extensions with the end result of frustrating and scaring away potential permanent loan institutions due to Dodd-Frank issues and XXXX loan practices being significantly breached by First Tennessee. Certain bank VPs became harrassing and threatening during the process I was left to unravel. The end result was it took us 11 months to find a permanent loan ( VA ). During this same timeframe, the bank continued making loan errors, made up a fake agreement regarding a " payment plan '', then engaged in false credit reporting by submitting a false supplemental credit report stating we were in default and late paying the " fake payment plan '' XXXX fake = never spoken of by either party, nor agreed to. This according to the XXXX XXXX personally handling our account ). The bank also doled out loan extensions, always after the due date of the previous extension, AND always back-dated as if the loan had never lapsed into default, which new institutions were rightfully not willing to accept. This entire process took place due to First Tennessee negligence in accounting, project oversight, inspections, and contract practices, illegal loan extension agreements, blackmail in the form of an initial " loan extension agreement '' who 's sole purpose was relieving the bank of liability for its illegal and unethical actions, and engaging in false credit reporting. All of this was unavoidable had the bank done its job, yet it left a huge hardship on myself and my family causing and extreme level of anxiety and stress, loss of work due to becoming XXXX, and robbed my family of the opportunity to enjoy a new and completed home. The pain and suffering was enormous. I contracted with a professional, licensed, regulated institution with professional, licensed and regulated individuals to protect both bank and my interests since I am neither licensed nor a professional in this field of expertise. I relied on them to perform their required licensed and regulated duties on my behalf, and they failed miserably to the point of negligent on their part.

Company response to consumer: Closed with explanation