Consumer complaint received 2021-05-19
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: KEYCORP (WA)

Summary is an evasive, increasingly unresponsive loan officer who confirmed a buy down in the interest rate <48 hours before the closing date and subsequently revoked the buy down with <24 hours before closing. Tried to contact supervisor and later appealed to that person 's supervisor. Was asked why I chose to sign the deal even though it was obvious that I had little choice if escrow was going to be met on close date to avoid per diem fees and possibly losing the home purchase. I have a detailed timeline copied below that provides exact information. 

-- -- -- -- XX/XX/XXXX XXXX ( KB XXXX loan pre-approved. KB electronic documents sent to me via secure portal XX/XX/XXXX XXXX XXXX XXXX XXXX ) email requesting several items including proof of homeowner 's insurance XX/XX/XXXX all requested items emailed to XXXX in addition to insurance agent information to obtain proof of homeowner 's insurance XX/XX/XXXX XXXX informs me everything is 'good ' and that loan sent to KB underwriting team XX/XX/XXXX XXXX  informs me of seller credit and how it can be applied to loan ( see below ) So the Seller Credits exceeds the amount of pre-paids and Closing Costs. There are 2 way you can utilize the extra funds left over You can buy the Interest Rate down and use left over Seller Credit Fees You can reduce your loan amount using the left over Seller Credit Fees Let me know what you prefer and we can get that done for you XX/XX/XXXX emailed XXXX  for clarification on how seller credit works, and her response ( see below ) suggests additional information is needed Since I am unsure on exact amount yet left over I cant tell you how much we can buy down rate, but I do think we can get you a 2.875 %, which would be paid by Seller Credits ( roughly XXXX XXXX. Or we just reduce the loan amount from the credits! 

I will try and confirm today what the exact dollar amount is left over to make it more clear XXXX XXXX XX/XX/XXXX emailed by XXXX rep XXXX, XXXX XXXX XXXX XXXX XXXX, requesting several items including " addendum to purchase contract lowering the purchase price from {$850000.00} to {$850000.00} signed by all parties. '' XX/XX/XXXX replied to XXXX  via same email chain referenced above, asked if dollar amount was known. No response. 

XX/XX/XXXX requested clarifications from XXXX. No response XX/XX/XXXX email from XXXX closing department rep XXXX XXXX received. Documents electronically signed that day by me. 

XX/XX/XXXX connected with XXXX  by phone. One of the required items, an addendum to purchase contract lowering the purchase price from {$850000.00} to {$850000.00}, was needed because the internal KB documents had different figures for the purchase price. He did not say who created the forms with the conflicting prices. 

XX/XX/XXXX informed by XXXX  that dollar amount on seller credit would be ready by XXXX XX/XX/XXXX Friday XXXX see below ) Hi ( redacted ) I am looking into the dollar amount today, as I did not have exact figures on how much left over Seller Credit we have. Let me get that exact number and I will get that to you by XXXX! At that point you can advise which route you would like to go to utilize the left over Seller Credit XX/XX/XXXX XXXX emails saying the seller credit is a little less than {$20000.00} and asks how I would like it applied to loan ( see below ). I replied that I would prefer a lower interest rate This is the amount XXXX left over for Seller Credit. Please advise if you would like to use for loan amount or buy down rate. I would say most reduce loan amount to save life of the loan interest you will pay. Let me know your thoughts! 

XX/XX/XXXX I emailed XXXX  asking if she had received my previous message and if it was OK. She informs me that she is no longer sure the seller 's credit exists ( see below ) HI ( redacted ), I did get your request, however I am looking into this Sellers Credit to make sure this is actually a credit or are they just going off the Earnest Money XXXX Want to verify before we do anything! 



XX/XX/XXXX - XX/XX/XXXX several attempts made to contact XXXX. I do not have full documentation for this. If I remember correctly, she told me she would get back to me and copy me on emails with the XXXX processing-not underwriting- department but failed to do so XXXX zero communication XX/XX/XXXX - early morning phone call to XXXX  confirms existence of seller credit. I am sent a KB electronic document request which I sign ( see attached " XXXX '' XXXX. She tells me the loan is going to be sent to my title company later that morning XX/XX/XXXX - I send this email to XXXX  at approximately XXXX I am writing this message because I am trying to get an update on my property purchase which is scheduled to close this Wednesday. 

XXXX, when we spoke this morning you said the KeyBank closing team was in contact with my title company, XXXX XXXX, and I was sent an electronic document for signature which I signed. It is now XXXX XXXX / XXXX XXXX  and I have not received instructions on how to make payment, so I am assuming there is ongoing coordination between Key Bank and XXXX XXXX. 

Please provide an update on the situation. I have copied agents from XXXX XXXX in case they are aware of circumstances on their end that require further attention. 

Thank you, XXXX Redacted ) XX/XX/XXXX I send another email to XXXX  It is now XXXX local time and I have not heard an update from KeyBank. 

XX/XX/XXXX I make several phone calls and leave messages with the person who I believe is XXXX  's supervisor, XXXX XXXX. I obtained this information from a XXXX  loan office in XXXX. No response. I write the following email to XXXX : Hello XXXX, I am reaching out to you about difficulties I am having with closing on my property using KeyBank. I am supposed to close on a townhome in XXXX this Wednesday. XXXX XXXX, XXXX # XXXX, is my loan officer.

Please see below for details. At this point all I care about is getting the loan pushed through, but I want to thoroughly document what has taken place over the last few weeks so you understand my perspective. I would greatly appreciate it if you can step and facilitate this process. 

Thanks, ( Redacted ) -- -- - She has been increasingly evasive about the loan process and I have been told over and over that it will get done, but I am now a little more than 24 hours from my closing date and I have not heard from the title company. I spoke to her this morning and when I asked how we would proceed if the offer was not sent out by the end of today, she just said that it would be done today and left it at that. Last week I asked her to loop me in on the emails she was sending- with the loan processor, as I was informed I am not allowed direct communication with the closing department- and this request was ignored. This was preceeded by a two week period when I was initially told there was a sellers credit, then the seller 's credit may not actually be there, and then told again that it's there. A few weeks earlier I was asked by the loan processor, XXXX XXXX, for an addendum to my purchasing agreement. I was confused and no idea what he was talking about. Apparently there were different prices listed on internal keybank documents, and while he did not tell me who was responsible for creating the docs, they were made early in the process when XXXX was my only point of contact at KeyBank. 

XX/XX/XXXX I receive an email from XXXX saying the Seller 's credit does not exist and I need to tell her ASAP if I accept the previous loan terms, see below Good morning ( redacted ), I am sorry just getting this! I contacted closing and your XXXX  is coming to you this morning, however I need to confirm your rate ASAP before sending. There is no extra $ for Sellers Credit, our Underwriter read wording wrong in your contract. Therefore want to confirm you are okay with 3 % interest vs 2.875 % due to no extra funds from a Sellers Credit. Please email me ASAP and I will notify closing and your CD will be sent immediately! 

Thank you and I am very sorry for that mixup on Sellers Credit on behalf of our Underwriter. 

XX/XX/XXXX I forward this email to XXXX and demand that he call me back. He instead writes me this email pressuring me to accept their offer : Hi ( redacted ), I just spoke to XXXX on this. It appears there was some confusion on how the contract read regarding a seller credit. This was clarified and cleared up that there is no additional credit for this transaction as the underwriter initially thought. Are you good with the 3 % since there is no credit to buy down the rate? We need to get the XXXX out today so closing can take place and they are working on this now. 




XX/XX/XXXX I write another email demanding that XXXX call me to discuss the matter. He calls me 30 minutes later and explains there is nothing he can personally do but he will " make a phone call '' to see what else can be done. When he calls me back 30 minutes later he says the best they can do is give a {$500.00} discount. I inform him this is unacceptable given the discrepancy between the seller credit and his discount. I say that I accept the offer. 

XX/XX/XXXX - sent electronic KB documents, see attached " Tuesday.pdf '' XX/XX/XXXX deal closed with title company