Consumer complaint received 2017-03-13
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: CITIZENS FINANCIAL GROUP, INC. (PA)

I was charged {$490.00} for a mortgage application that should not have been sold. Loan Officer XXXX sold me an application for a mortgage that Citizens later said I was not qualified for, information the loan officer knew. He used deceptive sales tactics to get me to apply, which included lowering fees more than competitors and dropping contingencies - all despite knowing I could not even qualify! In addition, the loan officer did not even keep to contractual deadlines or keep in any regular communication with myself, the client. The deadline problem did not only occur with the application in question but also a previous and different mortgage with myself, the same client. I did not have a good experience with Citizens on either my original mortgage closing or my application for a second mortgage. I communicated with Citizens about getting a second mortgage because the bank had all my information and therefore could quickly tell me about what type of loan I could purchase, or whether or not I could even qualify. I was not informed that I did not qualify for the ( conventional ) mortgage I applied for until after the mortgage commitment date was due! Even my realtor, XXXX, had trouble getting XXXX to keep in regular contact. On the day of the mortgage commitment he had to hear from XXXX boss, XXXX, about why there was no mortgage commitment from the bank on the day due! 
I applied for a conventional mortgage to move to a different house in the same neighborhood but was told, after passing the mortgage commitment date, that for the loan to still move forward it would have to change to an investor mortgage. The reason given being the loan may not pass Fannie Mae rules, rules that the loan officer claimed he had not and could not have had any knowledge of, despite working the industry for 20 years, closing about XXXX loans a year, and had all my information from a previous closing in which he could have asked underwriting before getting me to sign the application! 
Afterwards, I filed a formal complaint with XXXX with the Office of the Chairman who promised a thorough investigation but came back saying Citizens did nothing wrong. She claimed the loan officer properly informed me about why my application could not be approved. The bank is basically lying and trying to walk back their mistake because I clearly told the Office of the Chairman - with evidence - that the loan officer did not communicate any problems or issues with my application until after the mortgage commitment deadline was passed. They wanted to change what type of mortgage I was applying for, all after the fact, when they should have know prior to formally applying that my application could not be approved! It was very clear that the bank should not have attempted to sell an application since they had information available that it could not be approved, especially to a long time customer.The bank, especially the loan officer, did not act in the best interests of the customer as they charged me for unreserved services.