Consumer complaint received 2021-07-28
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: HUNTINGTON NATIONAL BANK, THE (MI)

Earlier this Spring my husband and I decided to start the process to refinance our home. We have lived there for over 14 years and have never refinanced, we knew we had ample equity in the home, and desired a debt consolidation to further improve our credit scores after the detrimental effects of our son being being diagnosed with XXXX several years earlier, and ultimately succumbing to his XXXX in XX/XX/XXXX. 
On XX/XX/XXXX I submitted an online application for refinance with Huntington Bank. We chose this institution upon recommendation from my husbands parents who had recently refinanced their own home. I was contacted back by XXXX XXXX NMLS ID # XXXX via email to introduce himself and let me know I would see some additional information and instructions come through my email. I received this email on XX/XX/XXXX with the following instructions asking me to upload additional documents including recent pay stubs, XXXX and XXXX XXXX 's, statements for items being paid off, mortgage statements, and a home insurance declarations page. It also stated that we would go through the following steps 1. upload documents 2. sign additional documents in XXXX XXXX 3. I would receive disclosure in 72 hours please sign 4. Your loan will move to a " Home Loan Advocate '', this HLA will complete your loan and become your primary contact. They will reach out after your loan comes out from underwriting in 1-2 weeks. I then received a call from XXXX to discuss our credit scores and income. I was at that time at a score of XXXX, and my husband was at XXXX. Because my husband was XXXX XXXX ( although a XXXX  employee of his company ) they recommended not applying him to the loan. He also recommended after seeing our scores to proceed with an FHA option, as this would keep our closing costs lower and we were within the guidelines for approval of a fixed loan which was our preference. After discussing with my husband we removed him from the loan and proceeded with their recommendation to do the fixed rate FHA loan. 
On XX/XX/XXXX I received an email confirming that my husband had been removed from the loan.I also received initial loan disclosures on that date which I signed and returned through the XXXX XXXX. I submitted the requested documents On XX/XX/XXXX we received a letter from XXXX with the details of our credit scores and I submitted an email to XXXX asking if we should wait a bit longer knowing that the current credit score for me was XXXX and per our prior discussion we may qualify for a conventional loan once my credit score reached. XXXX. I also asked several questions about the FHA loan requirements and any possible repairs or changes that might be requested of us, so that we could prepare for the appraisal and meet their requirements this email went without any response. I did not hear from XXXX again until I reached out to him on XX/XX/XXXX. 
In the meantime on XX/XX/XXXX I received an initial introduction email from XXXX XXXX who was now my assigned HLA. In this email he acknowledged that the signed disclosure had been received. On XX/XX/XXXX I recieved a call from XXXX stating that had not received the pay stubs needed. I emailed them in on XX/XX/XXXX. 
I did not hear anything back until I received and email on XX/XX/XXXX from XXXX stating that Underwriting had advised him that they could not move forward with the loan until the following conditions were met. They request a signed dated letter of explanation for the following derogatory accounts appearing on the credit report. What was the reason for each and how was it resolved 1. Late payments to XXXX XXXX on XX/XX/XXXX, XX/XX/XXXX, and XXXX 2. Late payments to XXXX XXXX XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX 3. Late payments to XXXX on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, 5. Late payments to XXXX XXXX XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX 6. Late payments to XXXX XXXX on XX/XX/XXXX 7. Late Payments to XXXX XXXX on XX/XX/XXXX, and XX/XX/XXXX 8. Late Payment s to XXXX XXXX XXXX  on XX/XX/XXXX, and XX/XX/XXXX, 9. Late payments to XXXX XXXX on XX/XX/XXXX, and XX/XX/XXXX and XX/XX/XXXX. Late payment s to XXXX XXXX on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Late payments to XXXX XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. I sent the letter of explanation the same day, on XX/XX/XXXX he responded stating he would send to underwriting today., and he would rech out once the file was returned to him by underwriting. and that he hoped to have an answer for us by the end of that week. 
On XX/XX/XXXX I received a phone call from XXXX stating that underwriting came back with a conditional approval. The conditions needing to be met included 1. appraised value coming back at a minimum of XXXX 2. a letter detailing XXXX XXXX  relationship to XXXX XXXX XXXX XXXX  XXXX, 3. a letter from XXXX stating that he was aware of the refinance effort and that he had access to the account being used. 4. A signed and dated letter of explanation for late payments noted on the credit report 5. last two months bank statements all pages. 6. a signed and dated letter explaning inquiries from XXXX XXXX and XXXX on XX/XX/XXXX and XXXX. 7. 30day payoff notices for all accounts being paid off with the proceeds of the refinance. 8. 12 month payment records for XXXX XXXX and XXXX XXXX XXXX XXXX XXXX loans. We were informed that now that the loan was approved we would hear from the appraiser to schedule that appointment and that we were required to pay {$500.00} up front for the appraisal., I supplied that payment over the phone. 
On XX/XX/XXXX I received a call from the XXXX to set up the appointment it was scheduled for Monday XX/XX/XXXX between XXXX and XXXX I notified XXXX via email. On XX/XX/XXXX I received a phone message from XXXX confirming the completion of the appraisal. I emailed him back confirming that the appraisal had been completed as planned on XX/XX/XXXX. 
I called XXXX on XXXX th as I had not heard anything further regarding the appraisal. He emailed me back stating that the appraisal came back very good with a valuation of {$160000.00}, however the appraiser applied a condition that our front porch needed to be prepped, painted and paint chips removed, and be reinspected to meet FHA guidelines. I called XXXX and explained that this was a very big project as the porch stretches across the entire front of the house and we both work full time and that it may take a week or so to complete. He indicated that it was very important to complete the project ASAP. as a result of our conversation my husband cancelled his jobs for the day, and power washed prepped and painted the entire front porch completing it at XXXX on the same night we were informed that it needed to be done. He lost approximately {$790.00} in wages that day. We notified XXXX of the project completion the same day. We were told reinspection would cost {$170.00} and it would be added to our closing costs. The inspector returned and submitted the reinspection report on XX/XX/XXXX. I requested an timeline from XXXX on resubmission to Underwriting with all conditions met, and was informed that the goal was to complete the entire process by our rate lock date of XX/XX/XXXX. I explained that I felt like we were being very responsive and accommodating of their requests and anything that could be done to expedite things would be appreciated. I also informed him at that time that one of the loans that was orginally slated to be paid off by the refinance had already been succesfully paid off in the two months + that we had been working on this. I had requested the XXXX  balancel letter. On XX/XX/XXXX XXXX requested more documents payoff statements for mortgages, and loans being paid off by the loan, and a copy of the bank statement for the account used to pay off the XXXX loan. ( I have no idea why it mattered what account I used to pay it off. But I supplied the requested information. ) On XX/XX/XXXX all documents requested had been received I took time off of work to personally drive to certian banks to get pay off letters, and 12 month payment records. XXXX submitted everything back to underwriting on Wednesdy evening stating that there was a 24-72 hour turn around time on the approval. He also stated that he was going on vacation until the following Wednesday but had people helping his clients and that they would reach out. 
By Monday XX/XX/XXXX th I had not heard anything I attempted to reach out to those covering for XXXX with no response, so I called XXXX XXXX, our loan officer. He stated he would check on it and get back with me. He called me back and stated it had not yet been returned from underwriting and he would keep and eye on it as they expected it back at anytime. Tuesday still nothing back from underwriting according to all contacts. 
XXXX returned Wednesday and I called and inquired about the status of the underwriting. He called me later that day and said underwriting had not come back with an approval but rather more conditions that needed to be met. MUCH to my dismay as he listed the requested conditions, almost all of them had already been submitted previously. I voiced my concern that I felt like this was out of the ordinary and that I felt like I was not being treated fairly with the continuous delays and repeated requests for the same information. XXXX agreed and apologized, and stated that he would review with his manager and get an list emailed to me with what was needed. 
The following items were requested on 1. a signed and dated letter from my husband stating that he knew of the refi and had access to the accounts. ( this was previously sent ) _2. a signed and dated letter of explanation for derogatory credit information ( this was already sent twice ) 3. Provide verification of the following has been paid and released - state tax lien against XXXX XXXX in the amount of {$20000.00} plus costs and interest filed for record XX/XX/XXXX in book XXXX XXXX as case number XXXX XXXX county records. ( this was a tax lien that we were unaware of relating to sales tax debt from our business that we were on a payment plan for ) I resubmitted all prior letters that had already been sent prior and a copy of our installment agreement with the state. I also informed XXXX that we had no problem using the proceeds of loan to pay off the tax lien in full. I called and informed XXXX of the same. They also required me to participate in a tele-conference call with XXXX XXXX and my mortgage company to confirm information that they already had in writing from my mortgage company. They confirmed the loan was up to date and the principleb balance on the loan. It was a complete waste of time and I had to step away from my job to do it. I sent an email on XXXX to XXXX confirming that the call had been completed. He also informed me that we were still waiting on written verification of my employment. and that the process could take several days. I was getting very irritated by this point. I mentioned to XXXX and to XXXX that I was getting the strong impression that the underwriting team no longer wanted to do business with me and that they were making me jump through a lot of hoops to find a way to get out of funding the loan. I also expressed at that time that the process that was supposed to take 6-8 weeks was now on week 10 and I was getting upset with recent series of events on a loan that was conditionally approved a long time ago. They reassured me and sent the remaining items back to underwriting on XX/XX/XXXX. 
On XX/XX/XXXX I received an email from XXXX that only said. Your file was returned to me and underwriting is DECLINING the loan due to more than 2 late payments in the last 24 months. I apologize. 
I am furious over this I wasted a ton of time and expense and lost wages on getting everything they asked for. I was very up front about our troubles and credit rebuild and that the lien unknown to us could be paid with loan proceeds etc ... but what gets me the most is that they could see those late payments from the VERY Beginning! I feel taken and advantage of, lied to, and discriminated against because of our extenuating circumstance. We have never filed a bankruptcy, have no collections accounts, and our collateral appraised {$22000.00} higher than expected! They requested information that wasn't needed in the loan process including a signed and dated letter from my husband who was not on the loan because his legal employment pay was not good enough or too much trouble for them to deal with explaining to them his relationship to his own company. Also a bank statement showing how we paid for the XXXX loan, who cares it's paid off in full and closed it no longer is a factor! I want someone to look at this because these lending practices were far outside of normal I feel like they are cherry picking their clients instead of lending based on set criteria.