Consumer complaint received 2020-11-10
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: VALLEY NATIONAL BANCORP (NY)

I currently have a home mortgage with Valley National Bank in New York State. 
In mid XXXX of this year 2020 I began the process of refinancing the mortgage for the purpose of lowering my interest rate. Valley National said they had a program that would cost {$490.00} ( CEMA ) for refinancing with no additional closing costs. 
I was sent loan documents to sign and a request for the {$490.00} which I paid immediately. by credit card. I then received an email that explained in order to be eligible for this program I would have to open a checking account with Valley National. The checking account, they said, was required so that the mortgage could be auto deducted from my account each month. I was surprised by this information as it was not given prior to the documents being sent and the {$490.00} being charged to my credit card. I opened the checking account at Valley National to satisfy this surprise requirement. I then received a second surprise when they requested {$500.00} for a rate lock. I explained that I did not want to lock the rate but they insisted that this was the only way to move forward with the process and that the {$500.00} rate lock fee was fully refundable after closing. In order to not waste more time, I paid the {$500.00} rate lock fee. 
Upon reviewing the loan documents I realised that they had written the loan amount for {$7000.00} more than what the balance was of my loan. I also saw that there were over {$6000.00} of closing costs on the document. When I asked for clarification the loan officer was elusive and unclear about why those amounts appeared on the document. I did my own research and discovered that the Government taxes and fees on the document are not considered " closing costs '' but appear nonetheless in the closing cost area of the document. The loan officer then explained that we would not have to pay out of pocket for those costs if they were worked into the loan amount. I declined that option and requested that they rewrite the loan for the amount I requested ( the balance of my loan ) and I would pay out of pocket for the taxes and fees. 
After that was agreed upon I was sent new loan docs. I signed everything in a timely manner. I then was asked by the loan officer to re-submit information about my finances including my W2 's, three months of pay stubs and my home insurance declaration page. ALL of which I had already submitted at the beginning of the process. I resubmitted all that was requested of me. The loan then went to another department that handles preparing everything for the underwriter. The individual who I was now working with requested my Pay Stubs AGAIN. After some days went by I contacted him again. He then explained that he must send a Verification Of Employment to my employers of the last two years. I alerted my employers who sent the requested document back to Valley National the same day. 
I made several attempts to follow up with the individual who requested the VOE. He did not return my phone calls or email. The following business day I received an auto response from his desk explaining that if I needed assistance to call another rep at Valley National who's name, email and phone number were provided. The phone number was missing a number so I had to take a guess at it. I was able to reach the woman who informed me that the previous agent was no longer with Valley National. She asked me for my loan number. She then explained that there was information missing from the VOE that was sent back to Valley. I personally reviewed the VOE with my employer prior to her sending it back to them and she had in fact filled out every section of the form. 
It seems to me that Valley National is trying their very best to discourage me from continuing to pursue this loan refinance. As I am already committed to a 30 year mortgage at a higher interest rate ( the house was purchased as an investment property and is now my primary residence ) they seem to be doing everything in their power to make the process so frustrating and time consuming that I will give up and just keep the higher interest loan. I am at a loss as to what to do at this point. This has now been a three month and counting process and it was advertised as a hassle free no cost refi.