Consumer complaint received 2024-08-20
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: JPMORGAN CHASE & CO. (MA)

XX/XX/XXXX I filled out an application for a Home Equity Line of Credit ( HELOC ) with XXXX XXXX, Managing Director, of XXXX XXXX XXXX XXXX XXXX ), now JP Morgan Chase ( JPMC ). Upon completing and submitting the loan application, I spoke with XXXX XXXX. During the phone conversation, XXXX and I discussed the loan term, the draw period, and the percentage of the equity in my property that would be used for the HELOC ( 70 % ). I was told by XXXX, that the HELOC loan would have a loan term of sixty ( 60 ) months, with a draw period of sixty ( 60 ) months, and that my primary residence, would be used as the ( sole ) collateral for the HELOC loan. Upon receiving the loan disclosures, I signed the loan disclosure and consent agreement electronically on XX/XX/XXXX at XXXX hours. 

On Thursday, XX/XX/XXXX, I received a commitment from XXXX XXXX XXXX  for the above HELOC loan. The HELOC was scheduled to close no later than XX/XX/XXXX. After receiving the commitment, I attempted to reach XXXX XXXX many times, by email, work phone, and cell phone, without a response. I reached out to his assistant XXXX to get a status on the closing, since I had not received a return phone call, text, or email from XXXX XXXX. I had growing concerns, because, as XXXX XXXX, and XXXX knew, I was using a portion of the proceeds of the HELOC to purchase a new primary residence. The new purchase was scheduled to close no later than XX/XX/XXXX. XXXX XXXX, and XXXX understood that the sellers of the new home had threatened verbally, and by email, to retain my deposit, if we did not close as scheduled on XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX finally responded to my question ( by text ), of why I hadnt closed on the HELOC, after receiving a commitment on XX/XX/XXXX. 

XXXX XXXX responded with the following statement : Got your message. Federal government requires a three day wait from when you receive the disclosures to when you can close. In addition they require another three day wait once you close as a rescission period where you can cancel the loan. Unfortunately there is no way around this. 

My response back to XXXX : XXXX I dont believe a HELOC fall under the TRID 3 day rule. The rescission yes but not the TRID. Also I think once a draw is done it cancels out the rescission period. Can we close on the HELOC Monday so 3 days brings us to Thursday? 

XXXX response back to me ( restated the above ) : Got your message. Federal government requires a three day wait from when you receive the disclosures to when you can close. In addition they require another three day wait once you close as a rescission period where you can cancel the loan. Unfortunately there is no way around this. 

After receiving the text message from XXXX XXXX, I confirmed that the mortgage loans to which the XXXX XXXX does not apply include HELOCs, reverse mortgage loans, or mortgage loans secured by a mobile home or dwelling that is not attached to a real property. I immediately contacted XXXX XXXX XXXX who assisted with the loan ) and advised her of XXXX and Is conversation. I then requested that XXXX XXXX please speak with XXXX XXXX, since it was now clear, that XXXX intended to further delay the closing by at least XXXX business days. After XXXX XXXX spoke with a supervisor, the closing for the HELOC was set for XX/XX/XXXX. 


I arrived at the closing on XX/XX/XXXX, to close on an equity line of credit for approximately {$170000.00}, with a XXXX ( XXXX yr ) term using my primary residence as collateral. A portion of the funds, from the HELOC, would then be used to purchase a new home, that I currently live in. This home was also financed by XXXX XXXX XXXXJP Morgan Chase . While looking over the paperwork that I received from FRBs, closing Attorney I could see that the terms were not the same as the disclosures that I received from XXXX/JP Morgan Chase . The following changes were made to the HELOC loan, without my knowledge. The term of the home equity line of credit were changed without my knowledge from the written and verbal disclosures sent to me that stated a XXXX ( 60 month ) term to a XXXX ( 12 month ) term. In addition, my primary residence was the only property to be used as collateral, but NOW the new residence that I was purchasing was also listed as collateral for the Home Equity Line of Credit. Additionally, the cost of the closing estimates was significantly higher than what was disclosed to me on the loan disclosures that I received from XXXX XXXX XXXXJP Morgan Chase . 

I immediately contacted XXXX XXXX the managing director, by telephone. XXXX did not immediately answer, so I left him a voice message and asked him to explain why the loan terms had been changed from 5 years to 1 year, and why two properties were being used as collateral instead of one ( per the loan disclosure docs as well as all conversations ). I then contacted XXXX, Bruneaus assistant, and she assured me that the HELOC loan term had not been change and was a term of five years ( 60 months ), and my current primary residence was the only property being used as collateral. XXXX said she would get back to me and to remain at the closing until I heard back from her. 

Approximately XXXX mins later XXXX called back and stated that she looked at the closing docs and they were indeed changed. XXXX said that, like me, she was never made aware that the loan term was reduced by XXXX years, to a XXXX term, and she was not aware that both properties were being used as collateral. XXXX further stated that I should speak to XXXX XXXX XXXX. XXXX also stated that she tried calling XXXX for an explanation, but he did not answer the phone. I called XXXX XXXX several times, while at the closing office, before he finally answered. XXXX XXXX apologized for not communicating to me that he had changed the loan terms and collateral and guaranteed that he would make things right and modify the loan to its original terms. XXXX told me to sign the documents and close the loan and that he would modify the loan before its maturity date. 

Over the next few months XXXX XXXX continued to communicate with me and XXXX assured me that the loan would be modified to the XXXX term and only XXXX property would be used as collateral. Bruneau again stated that the modification would be completed before the scheduled maturity date. 


On XX/XX/XXXX I received a demand letter from XXXX XXXX XXXX. This letter had been sent to my previous address. XXXXJP Morgan Chase did NOT send any collection documents to my current address, which was the address of the property that I purchased. The demand letter was sent to my previous address and stated that by XX/XX/XXXX I had to pay XXXX if not paid they were going to foreclose on the property. I contacted XXXX XXXX ( XXXX/JPMorgan Chase ) , and I told her about the situation. She stated that she would investigate the situation. XXXX XXXX further stated that she located the original disclosures and confirmed that the loan disclosures were for a five-year ( XXXX term ), with XXXX residence used as collateral. XXXX said that she would get back to me after speaking with JP Morgan Chase/ and their Attorneys. I provided a copy of the Loan Disclosure docs that was emailed to me. XXXX stated that she did not know exactly how long it would take for JP Morgan to come back with a resolution but asked me to please be patient. XXXX stated that she could not except a monthly payment from me, and while she, the Attorneys and JP Morgan Chase worked on the resolution that it would not affect my credit. XXXX and I began to correspond for XXXX months before she got back to me about a possible resolution. 

XXXX got back to me in XXXX of XXXX. XXXX acknowledged that JP Morgan Chase found a several discrepancies in what was disclosed to me prior to closing and the documents that were presented to me at closing. Due to several clear discrepancies, JP Morgan Chase, agreed to modify the loan to a five-year term. Prior to modifying the loan to a five-year term, JP Morgan Chase requested that I agree to the following terms. 

XXXX. The HELOC would be extended to a XXXX term. 
2. The HELOC loan would remain closed, with no further/future advances ( a discrepancy from the original loan terms and conditions ).

3. I would need to agree to sign a non-disclosure agreement ( a discrepancy from the original loan terms and conditions ). 
XXXX. I would need to agree to release XXXX XXXX, XXXX, XXXX, JP Morgan Chase, and the FDIC, as well as others from past, present, and future Release of Claim of any wrongdoing, during the HELOC loan process/closing. 
5. JP Morgan Chase self-initiated a payment to me, of {$2500.00}. This payment would only be released upon signing the agreement. 

After looking over the Agreement that JP Morgan Chase was requesting that I sign, I sent a written email, requesting that JP Morgan Chase agree to give me time to consult with an Attorney of my choosing because there were a number of conditions within the proposed resolution, that I did not understand, and there was a lot of legal verbiage that an Attorney or a member of the Banking Commission may be able to explain to me, and they may have more experience with. After making the request I received a call from XXXX who stated that JP Morgan Chase was rescinding the modification resolution. I asked why JP Morgan Chase had rescinded the proposed agreement. I was told that I rejected the agreement. I said I did not reject the agreement. I simply asked to have additional time to have an Attorney review it ( Ive provided this email ). 

JP Morgan stated that they would re-investigate whether I simply asked for time to review it or if I rejected the offer. Every XXXX weeks I called JP Morgan Chase XXXX XXXX to get a status on the offer. JP Morgan Chase responded by saying that they were looking into it. XXXX months later, XXXX of XXXX I was told that they were no longer willing to come to a resolution. 


Prior to the premature loan maturity, I had never been late or missed a payment on the HELOC mortgage. JP Morgan Chase began reporting that I was over 180 days late on my mortgage payment. My credit score dropped from XXXX to its current score of XXXX, due to the late payments that JP Morgan has begun to report to the credit bureaus. This has also caused credit card companies that I have been doing business with for over 20 years to close my credit lines.

I am respectfully requesting that the CFPB to please review these unfair banking practices and help me to restore my mortgage and my good credit rating. I requested that XXXXJP Morgan Chase send me a copy of the loan disclosures that I received after completing the HELOC application, the change of loan terms XXXX 's XXXXJPMC said were sent to me prior to going to loan closing, and the change of collateral the XXXXJPMC said were sent to me prior to going to loan closing.

Respectfully submitted