Consumer complaint received 2020-08-23
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: AXOS FINANCIAL, INC. (CA)

Here is the letter I am sending to Axos Bank describing what happened : Dear Axos Bank, I am writing to describe the horrific experience that I have had dealing with a HELOC at your bank. A little background. We have had an Axosbank savings account for several years. We were referred to you by our mortgage service provider, XXXX, and forwarded to yourbank directly when we inquired about aHELOC. 
On XXXX, when XXXX spoke with XXXX XXXX, Mortgage Loan Officer, NMLS # XXXX, he was told various options for this loan. One was a Heloc at 3.25 plus 1.75 for 5 percent which sounded like the best product. He was told there would be no cost if we opened an account with Axos. This is because the cost of the loan was approximately {$750.00} but there was a {$1000.00} lender credit, which would cover all costs. He said it takes 21-30 days but can take up to 60. Since we were intending to buy a new home with the money from the HELOC, we inquired if Axos offered any discounts if we took that second home mortgage with Axos as well. We were told yes. XXXX said we could apply online.In trying to apply online, the website was not processing the information. XXXX spoke to XXXX on the phone again and XXXX was able to initiate an application by taking information over the phone. XXXX then made documents available for us to sign. When we received the paperwork on-line, It said the cost was approximately {$2200.00}. When we questioned this on XX/XX/XXXX on the phone, XXXX said that this paperwork was just a general application for loans, the costs on the paperwork were not accurate, the appraisal would be a desk or drive-by, this application would just be to get the process going, later we would be signing different paperwork specific to a HELOC, and also there would be separate paperwork if we chose to take a new mortgagewith Axos. XXXX asked XXXX why they were asking us to sign paperwork that had costs that didn't apply and XXXX assured us that the costs did not apply and there would be no cost to us. 
On XX/XX/XXXX, we received an e-mailfrom Axos saying XXXX will be doing our appraisal and stating that if we did not provide payment for our appraisal within 24 hours, our loan would be delayed and our rate lock will be subject to borrower-paid extension fees and/or cancellation. This was confusing since we were assured the loan would be no cost to us. In looking at the bill, it requested that we pay {$450.00} within 24 hours. 
On XXXX, XXXX called and spoke to XXXX, who now informed us that the quotes he gave us on the terms of the loan were " wildly inaccurate. '' He could not explain what the terms of the " loan '' were. XXXX asked to speak with his supervisor. The supervisor was not available and I was told I would receive a call back. I later received a call back from " XXXX ''. XXXX explained that the interest rate XXXX quoted was correct, but the fees he quoted were incorrect. I asked for the terms of the loan in writing and XXXX said he would look into it, provide them to me, and call me back on Monday. 
On Monday, I did not receive a call back from XXXX. I did not receive paperwork for the loan. Instead, I received another e-mailfrom Axos bank stating that the appraisal of my home had been completed. The appraisal was incorrect because it said our current home was a 2 bedroom when in fact it is a 3 bedroom. This was later brought to XXXX 's attention and he said not to worry as it wouldn't affect anything. 
On Tuesday XX/XX/XXXX, I received 4 e-mails from XXXX XXXX, Sr. Loan Processor. One requested an initial needs list of documents necessary to process our " loan. '' Since " XXXX '' hadn't given me his contact information, I had to call back to XXXX ( who gives wildly incorrect information ) to ask for help. XXXX told me XXXX 's information was at the bottom of XXXX 's e-mails. I thanked him and went to look for that information. It was not there. So I called XXXX again. XXXX forwarded me XXXX 's information. 
I then called and eventually was able to speak with XXXX XXXX, Sales Team Leader, Consumer Direct Lending - NMLS # XXXX. XXXX apologized and said that he had seen that things were happening with XXXX and assumed everything was ok. I told him everything was not ok because yes things are happening, but we don't know what or why because they are still working off of paperwork that we signed under false pretenses. XXXX said XXXX could get us the paperwork, no problem. It would be easier and faster to just keep going rather than start over. 
XXXX then spoke to XXXX. XXXX said that Axos was not required to give us any documentation until the loan was complete and refused to give us anything. 
On XX/XX/XXXX, we received an e-mail from XXXX XXXX, Originations Title and Closing at XXXX, asking if we wanted the deed in our natural names or the name of the trust. We replied we prefered our natural names. The e-mail warned us to beware of fraud. Of course, we were worried about fraud because we were fraudulently induced to sign paperwork for the " loan '' that Axos was processing and refusing to give us any paperwork on what the " loan '' you were processing was. 
XXXX then replied saying wouldn't we want the title report to match with the name of the trust? We said that since we were given the option, we would prefer our natural names. 
On XX/XX/XXXX, XXXX XXXX sent us an e-mail asking us to complete and return a form " in order to obtain your mortgage payoff. '' Wait, what? Payoff our mortgage? We were not doing that. We had applied for a HELOC. We signed paperwork induced by fraud, Axos assured us we would get paperwork but kept refusing to give it to us. And now it appears Axos is trying to pay off our current mortgage? This looks like a refinance was happening. Without our permission. 
XXXX then sent an angry e-mail to XXXX, XXXX, XXXX, and XXXX. I demanded that Axos disclose in writing what kind of " loan '' Axos is processing. I demanded that someone of these 4 people who was working on the " loan '' find out what is going on and call me with the answers. No one ever called me. I left voicemails for XXXX, XXXX, and XXXX to call me back. No one ever called. XXXX replied in an e-mail that asked XXXX to make the paperwork for the terms of the loan available to us. Of course, XXXX never did. Still to this day, no one from Axos has given us any paperwork or disclosures. 
XXXX then asked by e-maill me if I wanted the note in the trust and that it would cost {$300.00}. I said then no I don't after I asked her why I would want that to which she rudley replied, " aren't you a lawyer? '' At this point XXXX said it had to be in the name of the trust. If we had just been told that instead of given a choice we could have avoided this issue. Then I was forced to spend the {$300.00} as she said I did not have a choice after previouslygiving me a choice. No one knows if this {$300.00} is part of any fees already discussed or not because no one will tell us the terms of the loan. 

Throughout this time, we complied with all requests for documentation within 24 hours. We are using the money to buy a second home. After we had cleared most of the paperwork hurdles and had a tentative closing date that came, and went ( without explanation from anyone from Axos ) I had to call and find out what the problem was. Apparently, there was an erroneous note in the file that said we were no longer buying the second house. I have no idea where that came from or what in the world whoever wrote that was thinking. It was totally made up. That was another week delay as the bank demanded 6 more documents from us that we would have gotten for them weeks ago. 
When those finally cleared, XXXX sent an e-mail asking us to confirm the terms of our loan. It said the interest rate was 5.25 %. I wrote back informing her that we were told 5.00 %. Rather than clear that up, she just sent us to the closing department at 5.25 %. We were given a different interest rate! So we were now are in closing for a loan with no written agreement or disclosure of theterms and Axos has  not changed ALL of the terms of the loanthatithad represented to us! XXXX explained to me that our house did not appraise high enough to get the best rate. I questioned XXXX about why he did not tell us the rate was contingent on the appraisal ( presumably part of the wildly inaccurate information ) and why when I TOLD HIM they listed it as a 2 bedroom and not a 3 which would have upped the value he did nothing to remedy it! We then had a tentativeclosing of XX/XX/XXXX that was the second date that came, and went ( again without any explanation from Axos ). We also had another closing date on XX/XX/XXXX which is the third tentative closing date without any finality. 
XXXX has given the worst customer service I have experienced in years. When he messes up which is almost every day on this loan he never apologizes and justifies his behavior. His supervisorXXXX XXXX   excuse is that XXXX is new. What is XXXX 's excuse for himself? XXXX is worse than XXXX. She might be competent at processing paperwork, which is nice, but she is rude and unhelpful. If she answers questions, it is with broad generalities about the " underwriter '' and the " closer ''. She doesn't answer her phone or return phonemessages. She had repeatedly refused to provide us with information about the terms of the loan. When she asked us to confirm the terms, we said theywerewrong, and she just kept going with the wrong information. I don't know where to place blame for the lack of paperwork, but I think ultimately it is with someone who is higher up than these people. How do you run a financial institution like this? 
This bank has caused so much XXXX  and wasted so much of my time over the last 60 day. We are in a pandemic and we are trying to buy a house both of which are stressful. I have refinanced houses several times and never had such a horrible experience. 
During this process we initially hopedto finance our new {$510000.00} mortgage on our second home with Axos bank. XXXX was convinced it would be easier since you already had our information. But five days into working with your bank, XXXX told him you are out of your mind if you think I am talking to these people any more than I have to and giving them more of my money. 
In fact, we have now lost total confidence in your Bank, which we have been a customer of for years. We intend to terminate all business with your bank and will never consider business with your institution in the future. We were continuouslyasked to provide more paperwork regarding thepurchase of our second home despite how Axos advertises on your website ( which we recently discovered ) : Cool! Use them for whatever we want! Then why all the paperwork and back and forth about if we were buying a new home? EASY and IMMEDIATE access to the funds! Are you kidding? Is this a joke? Annual fee waived the first year! Wait, annual fee, no one ever said anything about that to us. 
The problems discussed in this e-mail were all fixable. It really only would have taken one person at your bank providing us with accurate paperwork that we could sign and rely on. We tried to get that for over a month. 
In the process we discovered the Code of Federal Regulations section 1026.40. You have violated literally every single section of the statute. 
As XXXX rudely pointed out, we are lawyers. I can't imagine what your bank must be putting less sophisticated people through as they try to apply for loans. This process has been unethical, illegal, and I unfortunately keep wondering if it may even be predatory. You changed the interest rate on our " loan '' recently.For this reason, we have reported your conduct to the Consumer Financial Protection Bureau. Since you never made any of the disclosures required by 12 CFR 1026.40, we are canceling from this " loan application '' xxxxx*****. 
Under normal business circumstances, I would be able to assume you understand your legal obligations. However, since you have failed to provide ALL disclosures required by 12 CFR 1026.40, including the terms of loan and the conditions under which we are entitled to cancel the loan and incur no costs, I will direct your attention to subsection ( g ) of section 1026.40 : ( g ) A creditor shall refund all fees paid by the consumer to anyone in connection with an application if any term required to be disclosed under paragraph ( d ) of this section changes... before the plan is opened and, as a result, the consumer elects not to open the plan. 
Working with your bank and staff has been a truly miserable experience. In the extremely limited circumstance of my life that I have taken the time to write a letter like this one, I have generally asked for someone from the company to contact me to work on a remedy. I am not asking for that. In fact, I request that absolutely no one from your bank ever contact us again. 
XXXX, XXXX XXXX and XXXX XXXX