Consumer complaint received 2021-05-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: KEYCORP (WA)

I originally applied for a refinance XXXX XXXX for a conventional fixed rate 30-year loan, and I was able to lock in the rate at 2.5 %. I agreed to the loan estimate closing cost amount of {$4500.00} which included {$3400.00} in loan costs plus {$2200.00} in other costs minus {$1200.00} in lender credits. After waiting for months, I received a revised closing disclosure stating that my closing cost had increased to over {$10000.00}. My loan officer XXXX XXXX XXXX XXXX XXXX XXXX never notified me of the increase in closing costs or the reason why. I contacted my loan officer, XXXX, myself to get an explanation and he said that it was because of a mistake that he made and that in order to get me the 2.5 % interest rate, he had signed me up for a Home Ready Loan based on the location of my home but he was not aware that Key Bank no longer offered the Home Ready Loan based on location and it was now based on income and that I made to much to qualify for the program. But on Key Bank 's website regarding Home Ready mortgages as of XX/XX/2021 it states the purchaser qualification is based on income or location and regarding location it states no income limitation on low income census tracts and limited to 80 % of area median income in all other census tracts. The loan officer, XXXX, never mentioned to me that he was going to put me in the Home Ready program in order to give me the interest rate and closing costs for the original loan estimate. When I originally emailed XXXX about refinancing, I specified that I wanted to know the rate I qualified for without paying any Points and he said I qualified for 2.5 %. I had asked XXXX to change the closing costs back to the original loan estimated costs of {$4500.00} that I had agreed to and he stated that in order to do so that I would need to open a checking and savings account with Key Bank and then he would be able to ask his boss and upper management to honor the original pricing. So I opened a checking and savings account with Key Bank per Kevins guidance. I then received an email from XXXX stating that the price exception had finally been approved. I never received a final closing disclosure with the new costs. I was made aware of these costs at the signing of the escrow. The new closing costs Key Bank is asking of me is {$8400.00} which includes {$5900.00} in loan costs plus {$2500.00} in other costs and 0 lender credits. Key Bank is requiring 1 % of my loan amount ( points ) of {$2600.00} and that is something I never agreed to. When I called XXXX about the new costs, he was not aware of them. He thought that the pricing department would give me the original loan estimated closing costs of {$4500.00}. He also stated that even though this is his mistake, Key Bank pricing department has reduced the closing costs to {$8400.00} to meet me halfway and that he doesnt think they will reduce it any further and that I should accept these costs if I wanted to move forward with the refinance. I explained to him that this isnt my mistake and Key Bank should honor the original pricing agreement.