Consumer complaint received 2019-02-02
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: BBVA FINANCIAL CORPORATION (NM)

Complaint Summary : BBVA Compass failed to disclose costs, disbursed funds from our account to the builder without our authorization and never reimbursed us or recovered the monies, and representatives of BBVA lied and misrepresented themselves in the loan process that has resulted in additional costs to us and a loss of funds from our account. 

We attempted to resolve this issue with BBVA on more than one occasion. After the initial loan was finally approved we filed a complaint with the BBVA complaint department. We provided a summary of the concerns and supported them with email communications. In an attempt to settle our concerns BBVA offered us {$300.00} and asked that we sign and resolution not to say anything against BBVA or take any further actions. Our concern was that the delay that was caused by BBVA could impact our final closing and the interest rates at the time of the transition to a mortgage. We were correct in our concern. After the transition to a mortgage from the construction loan we met with a different loan officer who said she would assist us in addressing our concerns. We provided her the information and emails communications. After two week I reached out to check the status. She said she had submitted  the complaint and would follow up. Another two weeks have past and we have not heard from any BBVA representative. I also tried to contact the BBVA complaint department. After the initial conversation they have not responded or retuned my emails or calls. 

Below is a summary of the events that took place from the initial construction loan that began in XX/XX/XXXX through the final closing activities for the modification of the loan to a mortgage that occurred in XX/XX/XXXX. Each of the items below is supported by documentation and / or email communications. Copies can be provided upon request. Many of the emails were provided to BBVA during the initial complaint we filed with the BBVA complaint department. 


Initial Construction Loan 1. We were told that our mortgage would be closed in 30 to 45 days. The actual process was over 70 days. At one point XXXX ( Complaint Department ( XXXX ) admitted that the packet laid for several weeks without any actions. XXXX failed to meet their commitment or openly lied to us to get our business. These actions had financial impact to us in the way of rent, storage, loan fees and interest on the loan. 
2. Our Loan Officer misrepresented himself and lied to us during the process. He stated he was hired to fix BBVA Compass problems with the Mortgage programs. This made us believe we were dealing with a representative that had a higher level of influence in the program and that our issues would be promptly resolved. ( We were told by the BBVA Compass Compliant Department ( XXXX ) that this was not true ). In the early part of the process when we started having problems and concerns, if we had know this was not true we would have changed mortgage companies. Our Loan Officer also told us he was having meetings with the CEO of BBVA to put muscle behind our loan application. ( We were told by the BBVA Complaint Department ( XXXX ) that this was not true ) He continued to lead us on with lies and misrepresentations. These delays cost us money in increased interest rates. 
3. BBVA Compass bank told us in the initial disclosure of fees that we would not have to pay a document prep fee. Our loan officer repeatedly confirmed this in several emails that we would not be required to pay this fee. Once we made him aware that it was in the final closing documents he mentioned that he was trying to get us a credit to cover this cost but in an email sent on the XX/XX/XXXX he was not sure he had time to get it in. At closing we were charged a document prep fee. We were lied to and had to pay a fee that our loan officer said in writing that we did not have to pay. ( {$220.00} ) 4. Our initial closing was on a Monday morning at XXXX. We received the final numbers late in the evening on a Friday before the closing. We believe this is an unreasonable amount of time and hardly allows for an attorney review. 
5. We filed an initial complaint with XXXX. They wanted to give us XXXX and asked us to sign a document stating we would not say anything bad against XXXX. At this time we could not fully understand the full impacts of BBVAs impacts to us and elected to re-visit this when we did our final closing and modification to the mortgage from a construction loan. 


Modification to the Mortgage from the Construction Loan 1. We initiated discussions about the final close and activities associated financial issues beginning in XX/XX/XXXX. Initially we had email communications with our Loan Officer. As time went on. Communications to us became very limited. At one point in the process ( 2 days before we were to close ) we practically had to beg someone to respond so we could understand what was required of us to close. We left several messages for our Loan Officer to call back and my wife even reached out to the XXXX in desperation for someone to call us back so we could meet the close date to not incur additional fees. We believe the lack of communications and response is retaliation against us because we filed a complaint about the initial loan process. 
2. In XX/XX/XXXX our Loan Officer mentioned that he needed a two-week cushion to do the close after receiving the clearance that the final draw was made. ( Keep in mind we started these discussions in XXXX ) He also stated that he would alert the post loan-closing department. It took almost a month after that to close. This delay on the part of BBVA Compass cost us additional moneys in closing costs and lock extensions. In our opinion these were unnecessary and retaliatory. The cost of extending the lock was never disclosed until days before the final closing papers were received and the closing was to occur. The post-closing department was notified 45 days prior to the lock expiring and could not complete the task that our loan officer said would take two weeks. 
3. Our Loan Officer was making decisions on interest rates and fees without discussions and disclosures. It wasnt until we received final closure documents that we realized this. I requested to have a phone discussion with the loan officer and the regional VP. We never received a call or an email about my request. We believe this was retaliation for our complaint. BBVA Compass put us in a position where if we did not accept the numbers they provided we would lose our lock and have to pay construction loan interest. This was clearly retaliation on the part of our Loan Officer and BBVA Compass and placed financial impacts on us. 
4. During the final draw, the bank dispersed additional funds from our account to the builder that was not authorized by us in the final draw paperwork we signed. When we brought this to her attention, she said she was sorry she over looked that and we would have to get the money from the builder. When I told her that it should not be our responsibility to recover the funds, she stated she called the builder and he would pay us. To date we have not received the funds. This should have reduced the amount of the loan thus resulting in less interest during the life of the loan. Now we are out the money and have to pay the additional interest. More financial impacts. What is it called when someone takes money from your account and does not pay it back? In the state of New Mexico it is considered a fourth degree felony if the value of the misappropriated property is at least {$500.00} but less than {$2500.00}. We should have been given the opportunity to roll those funds against our loan. XXXX owes us the unauthorized funds they paid to the builder. To date XXXX has not credited our loan or refunded the monies since the date of closing. 
5. When we received the final papers for the close, we had concerns about the out of state notary forms. We share this concern but were told just have them line through the state and write the correct one in. We took the papers to the XXXX Branch identified by BBVA and ask them to notarize. They were unable to notarize the forms due to them being out of state. We turned them over to compass on the date they were due. 
6. I had to follow up with phone calls to both the branch office and to the post-closing department to determine if the loan was in fact closed. We never had a formal closing. In an email response, I was told that it had arrived and should get delivered in the next day. Never did receive any confirmation. 
7. We then received a past due notice from BBVA Compass concerning the interest on the construction loan and some additional fees. We took this to the local BBVA Branch office to inquire as to what it was and to try to obtain information about our monthly mortgage payment. We were told to disregard the notice of interest and fees, that we should not have received it. We had to request an amortization schedule through the local branch so we knew what our payments were and when they were due. The information they had did not match the amount in the final closing documents. The amortization schedule does not match the payment amount we were told to pay and the dates are incorrect. 
8. Most recently we went to a compass branch office to make our first payment because we had not heard from BBVA about our payments. At this time we met with another loan officer who told us she would assist us in getting this resolved. We provided this information as well as email attachments to support our concerns. At the time of this complaint she responded once saying she was working on it. We have not had any contact to resolve or discuss any of our concerns. I also contacted the complaint department to see if we could continue our compliant or if we had to initiate a new complaint. They have not responded.