Consumer complaint received 2021-05-18
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: CITIZENS FINANCIAL GROUP, INC. (PA)

We settled on a construction to permanent residence loan with Citizens Bank on XX/XX/XXXX with a 12 month construction period. 
Even before settlement we were diligent in starting the processes that are needed to get construction underway. We signed a construction contract with XXXX XXXX XXXX on XX/XX/XXXX and hired an engineering firm, XXXX XXXX, on XX/XX/XXXX to assist with all aspects of site engineering in preparation for permitting and construction. 

Due to the Covid-19 pandemic, we encountered delays in all aspects of the project. This included limited hours at county and township offices, understaffed third party entities, and delays in receiving communications from Citizens Bank. Despite these delays, we continued to move forward at a consistent pace in an effort to complete the construction of our new home as laid out by the attached timeline. 

On XX/XX/XXXX we received a letter dated XX/XX/XXXX from Citizens Bank warning that we were approaching the construction completion date of XX/XX/XXXX. The letter stated the following : " lf the construction and full disbursement can not be completed by the completion date, then the completion date of your construction loan must be extended ( subject to approval ). 
Please be advised of following : 1. We will not make any further disbursements to you or your builder after XXXX XXXX unless the Completion Date has been extended, 2. ln order to extend the Completion Date your request must be approved and you will be required to execute an Extension Modification Agreement and pay an extension fee, 3. The required extension fee will be {$930.00} per month. 
To request an extension of the Completion Date, please call our XXXX XXXX XXXX Department at XXXX, no later than 45 days before your Completion Date. '' We made a call to the number above on the following dates without a return phone call : - XX/XX/XXXX and left a message. 
- Twice on XX/XX/XXXX and left a message with each call. 
- Once on XX/XX/XXXX and left a message. 
- Once on XX/XX/XXXX and left a message. 
- Three times on XX/XX/XXXX, and left a message with each call. 

We finally receive a message from a loan officer through Citizens ' construction management website asking us our response the XX/XX/XXXX letter. We responded and were asked to provide a timeline of events for their reference to consider a loan extension for our project. After consulting with our builder, engineers, and third party assistance we provided Citizens Bank with the timeline of events on XX/XX/XXXX. 

We did not hear from Citizens bank until XX/XX/XXXX after We reached out via email requesting an update on the decision regarding the approval of the loan extension. We received a call from another loan officer asking us to refinance the loan and start the process over. The loan officer stated that we would be responsible for closing costs and would be subject to a full credit check as well. We were not happy with this option and asked when we would hear about the decision on the loan extension. He stated that the extension was no longer an option. On XX/XX/XXXX we received an email with an attached letter stating the following : " I wanted to get back to you, to follow up our call. I heard back from the Construction Manager assigned to your file, in regards to the fees for the refinance option, and our conversation. The only credit that we will be given is a {$1000.00} credit given for inspection fees that were already given. The refinance would have the other costs associated with the transaction that are required lender, title, appraisal, etc ... ..

From my conversation with the manager, at this time, there are 3 options : - Go into default and subsequent foreclosure because he has not met the terms of the loan - Refinance the loan internally - Pay Citizens off with an external refinance, or outside funds '' There is no mention of the loan extension and this timeline would leave us about 3 weeks to refinance the loan make settlement. To find another lender that could settle in 3 weeks is impossible and to threaten us with foreclosure is absurd, since we have met all of our financial obligations. With the global pandemic and our diligence, would it be so hard to grant us a loan extension? Especially since we requested the extension before the 45 day deadline from the loan maturity date and continue to wait on permitting from the county and township.

Lastly, the loan officers with which we had verbal conversations were unsympathetic, nasty, and could care less about our situation. They would raise their voices and and state that they could do nothing to help because " the board '' made the decision. When we asked if we could speak to a superior or a " board member '', we were told there is nothing that they could do. This has been one of the most disrespectful and disgusting transactions we have ever experienced and Citizens Bank is clearly not interested in customer service.