Consumer complaint received 2019-12-04
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: SUNTRUST BANKS, INC. (FL)

I am a first-time home buyer. In XX/XX/2019, I applied for a home mortgage loan with SunTrust Bank and worked with XXXX  XXXX  ( a mortgage loan consultant at SunTrust, NMLSR # XXXX  ). This was for a conventional 30-year mortgage with the initial sale price of {$760000.00} and an initial loan amount of {$680000.00} ( 10 % down payment ). OnXX/XX/2019, this loan consultant was provided with the name and contact information for the title company which would eventually be used for closing in XX/XX/2019 ( see PDF document " XX/XX/2019 emails '' for proof ). At no point in time have we changed title companies.

From XXXX to XXXX, we select finishings/make modifications and the house gets built. The final sale price of the house is {$750000.00} ( see PDF " Homeowner Transaction Summary '' which was put together by the builder ). This transaction summary is forwarded by the builder to the mortgage loan consultant at SunTrust Bank in XX/XX/2019.

In late XXXX/early XX/XX/2019, the builder sets a closing date of XX/XX/2019 at XXXX  XXXX  ( see PDF document " Closing date set emails '' for proof ). The mortgage loan consultant is notified of the closing date and a mortgage loan commitment is re-issued ( see PDF document " Mortgage loan commitment '' ). Please note that the loan amount listed on the re-issued mortgage loan commitment letter was {$680000.00} ( this is not 90 % of the final sale price of {$750000.00} listed on the Homeowner Transaction Summary ... instead, the bank/loan consultant worked off of old information from XX/XX/2019 ).

On XX/XX/2019 I text messaged the bank 's loan consultant and asked her to give me an idea of what interest rates would be if I were to put down 15 % of the total sales price ( instead of the initial 10 % noted above ). I ultimately decided on putting down 15 % and lock in an interest rate ( see PDF " Rate lock email '' ). After locking the rate, the loan consultant sent me an initial closing disclosure on XX/XX/XXXX ( see PDF " Initial closing disclosure '' ). I carefully reviewed the initial disclosure and emailed the loan consultant several questions ( see PDF " Rate lock email '' ). Please note that the closing costs disclosed to me at this point totaled {$14000.00} and the loan amount was now correct at {$640000.00} ( 85 % of the final sale price {$750000.00} ).

On XX/XX/XXXX, I emailed the title company and requested the final amount that needed to be wired in order to close on the following day XX/XX/XXXX. The title company agent replied that they were waiting on the loan consultant at SunTrust Bank to provide them with the final numbers for closing ( see PDF " XX/XX/XXXX emails '' ). The loan consultant then waits for the bank 's Closer to " balance the figures '' with the title agent and a final amount to be wired on the day of closing (XX/XX/XXXX ) is settled upon by the two parties. This final amount was {$100000.00} ( of which total closing cost was now {$21000.00} ). The total closing cost was now {$6600.00} higher than what was listed on the initial disclosure sent to me on XX/XX/XXXX and so I was upset and shocked. I then asked the title agent for the breakdown / reconciled final disclosure so that I could review ( see PDF " Final Disclosure '' ). I carefully review this and found that bulk of the discrepancy was related to transfer taxes. Transfer taxes were initially disclosed to me on XX/XX/XXXX as being paid by the seller. On XX/XX/XXXX, the final disclosure now stated that I had to pay these taxes. Upon reading the CFPB website, proper disclosure of transfer taxes ( who pays and what amount ) is one thing that can not change between the initial and final disclosure ( https : //www.consumerfinance.gov/ask-cfpb/can-my-final-mortgage-costs-increase-from-what-was-on-my-loan-estimate-en-172/ ) and so I raised this question with the loan consultant. The loan consultant finally replied to my calls/email and admitted that the bank based the initial closing disclosure costs and transfer taxes ( including who pays what ) on a completely different title company called XXXX  XXXX. This company is one we were never working with or had even heard of ( see PDF " Incorrect title company '' ). It appears that the bank 's Closer did not work with the correct title company or know/understand who pays what until the day before closing.

I am filing this complaint because I feel that the bank had over 6 months to work with the pre-specified title company ( selected in XX/XX/2019 as noted above ) and create an accurate initial closing disclosure so that I would not have to deal with the shock of an unexpected {$6600.00} increase in closing costs on the day prior to closing. I am especially frustrated because the bulk of the unexpected increased in closing costs were related to transfer taxes. The bank made a mistake in my opinion, and I feel that if the bank would have just worked with the pre-specified title company to begin with, I would have had a more accurate estimate and understanding of my closing costs. I still have no resolution to this issue.