Consumer complaint received 2021-02-15
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: ALLY FINANCIAL INC. (PA)

Between XX/XX/XXXX and XX/XX/XXXX we were wrongfully misled by Ally Home resulting in a systemic failure by Ally Home to provide us with sufficient notice of a potential discrepancy resulting in a {$2700.00} loss to us ( the buyer ) in our recent mortgage transaction with Ally Home. 

- Starting as early as XX/XX/XXXX we raised this potential discrepancy to an Ally Home Staff member as a matter of extra assurance to ensure that this would not result in money being left on the table : - On XX/XX/XXXX, prior to agreeing to a change in terms with the seller, we engaged Ally Home to inquire as to whether it was likely that the Ally Home estimated closing costs of {$28000.00} to drop below the credit offered by the seller of {$25000.00}. The reason being we wanted to be sure that we could fully utilize the credit being offered by the seller. During this conversation the Ally Home Staff member indicated that it was highly unlikely for the estimated closing costs to decrease and, if anything, that they would increase. At this time we used this information to guide our decision to sign a change in terms for a {$25000.00} seller credit, taking into account the assurance from Ally Home that we would be able to fully utilize this credit. 

- On XX/XX/XXXX, after receiving a preliminary closing disclosure indicating the closing costs would be less than the seller credit, we again inquired into whether this would result in leaving money on the table. An Ally Home Staff member assured us that we could still utilize the full seller assist. To quote, the email read as follow : To answer your question, it looks like you can apply the entire $ XXXX to your loan so I am not sure why it was partially collected when youre able to use the allotted amount in its entirety. Your final CD will be uploaded reflecting the full $ XXXX and if school taxes are to be covered by the seller that will be reflected as well. As soon as you both acknowledge your Initial Closing Disclosure in the portal, you can schedule closing, and then I can begin working your file and send updated documents to title for balancing. 


- On XX/XX/XXXX in response to the Ally Home Staff members communication, we responded with : Should we wait to sign the [ Initial ] Closing Disclosure until these adjustments are made? 

- On XX/XX/XXXX in response to the above question we received from our Home Loan Expert : No maam, since the adjustments will be reflected on your Final Closing Disclosure there wont be a revised Initial Closing Disclosure sent out. Acknowledging the Initial Closing Disclosure in the portal doesnt lock you in to any of the mistakes shown and is simply a manner of acknowledging the CD so you can schedule closing, so that we can move forward with generating the closing package. 

- On XX/XX/XXXX we also attempted to engage in brainstorming around how this discrepancy could be dealt with in the event that it resulted in leaving money on the table. 

- Between XX/XX/XXXX and XX/XX/XXXX we reached out multiple times to seek answers to our inquiries by email and phone with little to no response. When attempting to contact Ally Home by phone we were often assured that a message would be relayed to the appropriate Ally Home Staff member and that we would receive a call back. 

- On XX/XX/XXXX, less than forty eight ( 48 ) hours prior to our closing date and time, an Ally Home Staff member reached out indicating that we had a {$2700.00} surplus of seller assist credits that we needed to address, contrary to the communication from an Ally Home Staff member on XX/XX/XXXX that any surplus could still be fully utilized. We were provided with three ( 3 ) options to explore at this time. 

- On XX/XX/XXXX at XXXX Eastern Standard Time ( less than twenty four hours prior to our close ) it was realized that none of the three options were feasible. At this time an Ally Home Staff member, after apologizing profusely, indicated that a concession by Ally Home was possible and under review by the Director of Operations and being taken seriously. 

- We also did not receive our final Closing Disclosure until after XXXX Eastern Standard Time, less than twenty four ( 24 ) hours from our closing, which was scheduled at XXXX EST the following day, and contrary to the twenty four ( 24 ) - forty eight ( 48 ) hour standard. By the time that we realized that the three options presented werent viable, we were well within twenty four ( 24 ) hours of our arranged closing date and time, and, as such, negotiating was not an option, resulting in almost {$3000.00} being left on the table. 

Had this been appropriately addressed on XX/XX/XXXX, as it should have, after we raised the issue to an Ally Home Staff it is reasonable to believe that a solution could have been identified without disrupting our closing date or causing undue stress. As a result of this oversight and poor business practice we have lost out on {$2700.00} and incurred undue stress directly as a result of Ally Homes oversights. 

We were informed by an Ally Home Staff Member that we could proceed with our originally scheduled close date and time and that doing so would not prevent, nor have any negative impact on getting this issue properly addressed. Ultimately, we received an email on our closing day, XX/XX/XXXX, but after we had already closed, indicating that no lender ( Ally Home ) credits or concessions were possible. Further, it appears that Ally Home was pretty quick to sell the loan to a new party, which could be standard business practice but from our perspective could appear to be an action by Ally Home to limit interaction with us as much as possible going forward due to the scenario described within this notice. Put in simple terms a way of making the problem go away.