Consumer complaint received 2016-12-06
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: CITIZENS FINANCIAL GROUP, INC. (PA)

XX/XX/XXXX my wife and I entered a contract to purchase a home in XXXX and locked in a rate on a 30-year fixed rate mortgage with Citizens Bank, after extensively comparing rates and terms among lenders. We discussed with Citizens Bank the other options we had, and ultimately went with Citizens Bank because they were able to beat or match those terms and offered a lower overall rate and offered a locked rate so that we would not have to worry about any changes in rates before closing. We were to pay XXXX % down, have an XXXX % first mortgage ( 30yr fixed at 3.5 % ) and a XXXX % HELOC. Now, on XX/XX/2016, Citizens Bank has informed us that the HELOC can not be approved since I have a short credit history. This was clear from the start, and since then my credit history has actually become longer, not shorter, clearly. In any event, they now say that they can pass the HELOC to another lender that will lend at a somewhat higher rate, and that in addition to that the 80 % first loan with Citizens will now also have to be at a higher rate ( which makes no sense ). I believe the " short credit history '' is a mere pretext to allow them to raise the rate since rates have recently gone up. We relied in earnest on their rate lock. Nothing since then has changed. The only reason they cite was a condition that was readily apparent from the outset and that has not gotten worse over -- it has actually gotten better if anything. Citizens knew that we relied on their representations in deciding to turn down other banks, and in paying the XXXX and XXXX deposits on the contract ( and in fact we sent these checks to them as proof of payment of these deposits ). They have at all points known that the rate was a material term to us, that we were relying on their representation that it was locked at 3.5 % and that their failure to conform their conduct to their representation will cause us a clear and significant detriment. Our detriment is not only the deposits and turning away other lenders but also the expenses incurred in inspecting the house and moving to close and the time we will have wasted if we do not close. My wife is XXXX and we would like to move before XXXX. Now we may be unable to do that. What is more, when they sent us the revised worksheet with the higher rate, they did not even mention that the rate on the first loan was in any way affected, but instead only mentioned changes to the HELOC. They sneaked changes into the worksheet for the first loan, and when asked about it they have tried to argue that the expense to us is now actually lower. This is plainly not true. We would like to have the HELOC approved. If they can not approve it at XXXX %, we might be able to make the XXXX % work ( by doing a larger down payment -- though we frankly do n't have the cash for that ) or we may be able to negotiate with the other lender to get an agreeable HELOC with them ( if we can get substantially similar terms ). But in no event is it fair or right for our locked, fixed-rate first loan to now become unlocked because my credit history is not long. They knew this from the outset and I believe they even mentioned it to me. I may even have an email referencing that fact.