Consumer complaint received 2021-12-15
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: FIRST NATIONAL BANK OF OMAHA (IL)

At the end of XX/XX/2021, I submitted a request to get in touch with a mortgage loan officer at First National Bank of Omaha to discuss a refinance on the mortgage I currently held with them. XXXX XXXX reached out to me on XX/XX/XXXX to discuss rates and options. I agreed to move forward with the application. On XX/XX/XXXX XXXX offered a XXXX yr conventional loan for XXXX XXXX at a cost of {$460.00}. I agreed and we proceeded. While my wife and I completed each of the forms and submitted all necessary paperwork by XX/XX/XXXX. Initial documents provided by FNBO on XX/XX/XXXX did not include a credit to offset an appraisal fee ( which had been agreed was not needed as we were only requesting a $ XXXX loan on a house worth $ XXXX ). XXXX said he would get the paperwork corrected and escrow amounts more accurate after that weekend. 

He said that I should just acknowledge receipt of the information, and that I was not agreeing to the terms. I signed off to keep the process moving forward. We unfroze our credit scores, and our credit checks were performed on XX/XX/XXXX, then sent to underwriting. On XX/XX/XXXX I checked in as I had still not received the updated documents that XXXX said he would send me. He said he would send them over. He did not. I checked in again on XX/XX/XXXX and asked for updated documents ( showing no appraisal cost and more accurate escrow ). I was at first told that I would receive the documents later that day, and then at the end of the business day told I would not receive them because some of their computers in that department were " out of commission. '' I finally received the updated preapplication worksheet from XXXX on XX/XX/XXXX providing estimated closing costs- and showed the XXXX APR for 30 years at a cost of {$460.00}. XXXX said we were scheduled to close on XX/XX/XXXX. XX/XX/XXXX came and went, XXXX said that new purchases were getting priority and the lack of people at the bank was slowing down processing. I followed up on the XXXX and was told underwriting needed XXXX letters of explanation stating that our house was for our primary residence, and the request for those forms would be coming through the FNBO mortgage app shortly. I did not receive anything, so I followed back up on XX/XX/XXXX. We got the documents request through the app, created and signed the letters of explanation within XXXX hours ( while we were still at the hospital following the birth of our daughter ). 

I received the final disclosure documents from underwriting on XX/XX/XXXX, but they had changed the term from it costing {$460.00} for the XXXX APR to instead costing {$4600.00}. Believing there was just an honest mistake in where the decimal was placed, I reached out to XXXX immediately to get it corrected. He told me not to sign that document, but to provide any other documentation needed. I uploaded another round of paystubs on XX/XX/XXXX, and he said he would work on getting the document fixed. From that point forward, every couple of days I would follow up with XXXX, and be told the problem was being actively worked on, or that it would be fixed later that day. Finally on Friday XX/XX/XXXX, I got on the phone with XXXX to discuss what was going on. I was informed that someone in the underwriting department had made an error, as the request submitted by him was for the {$460.00} price, but that the person in charge of that department was refusing to correct it and honor the original terms that were agreed to. XXXX said he was taking it up with his boss and his boss 's boss, but there was no clear advancement, and the other department was taking a " take it or leave it, '' approach. 

This is a quintessential bait and switch, where if in waiting for this bank to honor the terms we'd agreed to, when they decide to change them, the market may have shifted such that I can no longer get the rate anywhere else. This leaves me forced to either pay thousands of extra dollars to FNBO in the short term, or potentially pay thousands more if I go to a different bank with different rates.