Consumer complaint received 2021-01-11
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: KEYCORP (CA)

This is XXXX XXXX, we recently purchased a new home ( XXXX XXXX XXXX, XXXX XXXX, CA, XXXX ) and chose Keybank as our lender ( loan agent : XXXX XXXX ). Our loan was closed on XXXX/XXXX/2020, but we are really disappointed in the process, I will briefly introduce the problems here. 

1. We initiated a loan process with you with the interest rate of 1.875 % and loan credit of {$2500.00} on XXXX XXXX ( see attachment 1 ). I was told I could only work with you because you didn't want to waste your time ( see attachment 2 ). And you said you could deliver the loan 100 % ( see attachment 2 ). I paid {$500.00} in front to start the loan process. 

2. The first CD was out, I pointed out the loan credit is wrong, and you confirmed the loan credit was approved and would be applied later ( see email screenshot 1 ). 

3. When we started the loan process, we put XX/XX/XXXX as the appraisal date. We said no rush for the appraisal because we were still in the negotiation with the seller about the fence encroachment. You said we could rush it if we need to ( see attachment 3 ). 

4. On XXXX XXXX, my agent XXXX brought some concerns that it was hard to order the appraisal at holiday season ( see attachment 4 ), and wanted to rush order it, and you said you rushed ordered it, and later you said the appraisal was moved to XX/XX/XXXX ( see attachment 5 ). You informed all agents ( buyer/seller ) and me that we could close on XXXX XXXX. On XXXX, we signed an addendum with the seller after we reached an agreement with the seller. And put the new close date as XXXX XXXX. We emailed you the addendum the same day, and our agents informed you too, you were ok with that ( see email screenshot 2 and 3 ). 

5. I asked if you have already ordered it after my agent said she hadn't heard back from the appraiser on XXXX XXXX and XXXX, I got no response ( see attachment 6 ). I called to confirm the appraisal was ordered because my agent didn't hear anything from the appraiser, and you said something went wrong that you need to check it out, you will call me back later that day. But no update on that day. 

6. On XXXX XXXX, you told us that we couldn't move up the appraisal, which caused our delay penalty ( see email forwarded ). 

7. On XXXX XXXX, you first brought up that the loan credit promised ( {$2500.00} ) may not happen. 


Key points : 1. Damages : We need to pay the sellers PITI as the delay penalty, which is {$140.00} per day for 6 days. XXXX informed buyer and seller agents of a wrong closing date. And despite many inquiries about the closing date from the agents and me, XXXX didn't mention the closing date was wrong until the last minute and thus the delay. 

2. Loan fraud : We didn't get the promised loan credit of {$2500.00}, which was the dealbreaker that we chose keybank and turned down other applications, it violated " The benefit of the bargain rule '', ( Stout v. Tourney ( 1978 ) 22 Cal. 3d 718, 725-27 ).

We were not informed the loan credit was uncertain until near closing date. I feel this may also violate the TILA ( truth in lending act ).