Consumer complaint received 2016-10-14
Company: BB&T CORPORATION
State: MD
Product: Mortgage
Sub-product: Other mortgage
Issue: Credit decision / Underwriting

Complaint:
I planned to build a new home on a lot I already own free and clear. I picked BB & T to provided the construction loan ( interest only loan which converts to a 30 yr. fixed rate mortgage when the house is complete ). In XXXX of this year, I sent my BB & T loan officer the building plans and then on XXXX XXXX I requested a rate lock ( I had just signed my contract with my builder ). I have a copy of the BB & T loan officer 's reply that I was locked in at a 3.375 % rate for 60 days. On her email promising the rate, you can see we were discussing the empty lot where the home was to be build so she know perfectly well it was a construction loan. All the paper work was submitted, there 's no problem with my credit score ( which is XXXX ) or the debt ratio, then yesterday I get a note from my loan officer, QUOTE : When you applied on line you applied for a NON construction loan so the product we have you on is for a non-conforming purchase. We all missed it and that is why we have underwriters. My apologies for not catching and correcting it sooner. Since I feel this is not your fault I have been working with secondary marketing to get you as close to 3.375 % rate as I can. I do have some restrictions so here is what I can offer you. 30 year construction loan program is 3.625 % and I will pay your underwriting fee of {$670.00}. We also have the 10 year arm for construction loans and today that rate is 2.875 % and the 7 year arm is 2.625 %. Rates are higher on Construction Loans because we do not know where they will be when the house is complete. You also have the option of a one-time float down option on the construction products when the house is within 60 days of closing. UNQUOTE This is untrue! After I spoke to my loan officer in XXXX and told her I needed a construction loan she quoted me 3.375 % with my building plans in her hands. Additionally, only after speaking to her did she tell me to go to their online site to apply for the loan. The drop down site on their web did not have a construction to permanent loan selection allowed. I told her, mailed in most of the information via mail ( hard copy ) some paper work I electronically signed on line over 5 weeks ago. Now that the rates have gone up, they tell me that they made a mistake, not me, and despite the promised rate of 3.375 % I 'll have to pay more. This ties my hands because ALL rates have gone up so I 'll pay more with BB & T or any other bank. ( The underwriters had NO other problems with my application and as you can see from my bank officer 's reply the feel I 'm fully qualified to get a loan through them. ) The property was to be built at XXXX XXXX XXXX, XXXX SC XXXX and the loan officer is : XXXX XXXX, XXXX XXXX | Banking Officer | Mortgage Loans | BB & T Home Mortgage|NMLS # XXXX Office : XXXX Cell : XXXX Fax XXXX XXXX XXXX XXXX ; XXXX SC XXXX

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