Consumer complaint received 2020-04-28
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: REGIONS FINANCIAL CORPORATION (SC)

I began the refinance process with XXXX XXXX  at Regions Bank on XX/XX/XXXX. On that day I received a Loan Estimate that reflected an estimated property value of $ XXXX with a loan amount of $ XXXX. On XX/XX/XXXX, I received the appraisal back from Regions Bank which reflected the value of my home at {$320000.00}. I knew this was an issue so I immediately called XXXX to find out how we can move forward and to get a new loan estimate/disclosure. I was finally able to reach XXXX on XX/XX/XXXX and he acknowledged that there was a problem, but he would get back to me soon. After I did not hear anything from XXXX I followed up with an email to my Mortgage Processor, XXXX XXXX, on XX/XX/XXXX and asked if the information in the Regions Portal is correct in regards to the loan amount and PMI. ( The loan amount had been changed from $ XXXX to {$310000.00} and the PMI had also increased. ) After not hearing from XXXX or XXXX, I followed up with an email to my Mortgage Loan Coordinator, XXXX XXXX on XX/XX/XXXX asking her the same question that I asked XXXX and XXXX. Later that afternoon I received an email back from XXXX XXXX that stated XXXX would be contacting you. I proceeded to call XXXX that afternoon twice and I never received an answer. Since XXXX was not responding to me, I had my wife contact XXXX on XX/XX/XXXX. XXXX answered the call and said that the loan could not go through because of the appraisal and that there were no other options. My wife asked XXXX for a new disclosure and that it was possible that we may bring the money to closing. After not receiving any estimate or disclosure from XXXX, my wife reached out to XXXX again on XX/XX/XXXX and left a voicemail. XXXX  later that afternoon sent an email with an updated estimated cost sheet. Note : The top of the estimated cost sheet says the following : Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan. I called XXXX after receiving his estimate and asked if it was official on what I owe and XXXX responded with no. XXXX suggested seeing if my realtor could find any comparable that we could send to the appraiser to see if he could get the value increased for our home. On XX/XX/XXXX I sent XXXX  the comparable my realtor found that may boost the appraised value. On XX/XX/XXXX I received an email from XXXX that said the additional comp didnt help and would I like to proceed and bring the additional money needed to closing? I responded with I would need to know how much is needed at closing and what the actual amount of PMI would be each month. On XX/XX/XXXX I emailed XXXX, XXXX, and XXXX a new payoff for my home. Later that afternoon, I received an email from XXXX that stated, Hello XXXX, Thank you for sending the updated payoff. After running the numbers you will need approximately {$10000.00} to closing and your PMI will be roughly $ XXXX/month. If you do want to proceed I will need the 401k please. Please call me with any questions. ( I had mentioned to XXXX  I MAY want to use my 401k for the difference in loan value. ) I responded to XXXX with an email that asked if he had anything to reflect that and why is my PMI so high? I am currently paying {$77.00}??? XXXX  responded with, Im not sure about the PMI, that is what the quote came back at. I responded with the following : Again I believe until we get some concrete information on amount due at closing and what the PMI will be, a decision cant be made. For some reason, this process seems to be taking a long time. 401k has already been uploaded under the original request for documents. The down payment will come from our XXXX XXXX accounts. You have documentation on all four accounts and their balances with more than enough funds to cover the amount due. XXXX responded with the following : Please call me XXXX. Thanks. XXXX called at XXXX XXXX  and stated the following from the few notes that I took : There is a RESPA issue with your loan and several compliance issues that I am attempting to get taken care of. 
You really dont want to come to closing with this much money due. It just doesnt make sense. 
XXXX stated that I received an incredible deal on my PMI with XXXX XXXX  and it doesnt make sense to refinance and see that go up. XXXX said there is no way my PMI should be that low and that obviously XXXX XXXX  has the ability to give really low PMI to their customers. 
Please let me know how you would like to proceed ASAP as I have to let my Compliance Department know. If you want to proceed I ( meaning XXXX ) will need proof that you have the funds for closing. 
I stated to XXXX that I would like to talk to XXXX, but without any type of disclosure reflecting what is due and knowing what the PMI will be, I am unable to make this decision. Right after the phone call with XXXX, I send an email to XXXX, XXXX, and XXXX saying the following : All-Please provide a Closing Disclosure ASAP. If this is not able to be provided, please let me know why. On XX/XX/XXXX, I called XXXX at XXXX XXXX. My first question for XXXX was that it appears overnight my loan was closed out, why did you close my loan? XXXX stated he had nothing to do with it and that was compliance. XXXX then asked if I wanted it reopened and I said yes. XXXX  stated I cant believe you want to bring this much money to the table. I responded with until I get verification of the amount due at closing and what the PMI will be, I cant make this decision and I would like it to be reopened. XXXX stated he would speak with XXXX and get it reopened and he would provide me an update early afternoon. XXXX had me send an email at XXXX XXXX  to XXXX, XXXX, and XXXX : XXXX-All XXXX XXXX XXXX statements for XXXX were uploaded last night for the money needed at closing. Please let me know what else is needed for this loan to close next week. 
From the phone conversation yesterday with XXXX and knowing our loan was closed out and we were not told, this really bothered me. This whole process has been nothing but a debacle and with the amount of pressure of XXXX  putting on that I did not want to go through with this, my gut was telling me something was wrong and/or messed up by Regions Bank XXXX I reached out to a friend of mine in the upstate who is the Compliance Officer for a bank in the upstate. He advised that I send the following to XXXX, XXXX, and XXXX : XXXX, I am not sure I understand what the problems are that have caused my loan to have been force closed in your system by Compliance yesterday evening. On XX/XX/XXXX you sent me a Loan Estimate showing the good faith loan closing costs estimates. Following my appraisal, which I received a copy from you on XX/XX/XXXX, we didnt speak about any issues with the loan until XX/XX/XXXX. From when Regions Bank accepted the appraisal, I did not receive an updated Loan Estimate showing any change in circumstances. I thought that 12 CFR 1026.19 required an updated Loan Estimate within 3 days, or that Regulation B would require an adverse action notice that you were denying the loan. In regards to my loan, I have received neither and I feel that the loan needs to get back on track as you have legally disclosed it to me. I know that you sent me an updated loan cost estimate on XX/XX/XXXX, which does not purport to comply with applicable law or regulation and does not meet the TRID/Know Before You Owe rules for Loan Estimates. I need this loan to close as soon as possible, with lender credits to cure for any tolerance violations as required by TRID/Know Before You Owe regulation. I am prepared to push this as much as I need to protect my rights in this situation. I am not trying to get more than what I am entitled to under applicable law and regulation, but I dont want to be mislead because of an error at Regions Bank for which I am not responsible. Thank you, XXXX & XXXX XXXX This letter was emailed to XXXX, XXXX, XXXX and my wife XXXX  at XXXX XXXX  with a subject line of XXXX Letter of Intention. I received an email back from XXXX : I have reran your loan through the automated underwriting system and your file is back to Approve Eligible. I will need ( 2 ) two months of assets statements. Please send me the XXXX XXXX XXXX accounts. I responded with : See attached. This would have also been uploaded in the portal back on XX/XX/XXXX. XXXX responded with : Received XXXX. Thank you! After not receiving any updates I sent the following email at XXXX XXXX  : Any idea on where we stand? Any update on the compliance issues? I received the following from XXXX : Your loan is back in processing. On XX/XX/XXXX, I spoke to XXXX to get an update at XXXX XXXX. XXXX stated nothing new. Multiple people are out due to the virus and tomorrow being XXXX XXXX  he is not expecting to hear anything at all. XXXX will try to get back to me in the morning. 
As of XX/XX/XXXX, I have received ZERO updates since the last email and no update as promised from XXXX. The loan does appear back in my online portal. No new disclosures have been sent since the first initial disclosure back on XX/XX/XXXX. I still have not received an explanation on the PMI. The estimated loan closing is XX/XX/XXXX. 
On XX/XX/XXXX, after not hearing from XXXX, XXXX, or XXXX since XX/XX/XXXX, I sent an email to XXXX at XXXX XXXX  : XXXX, 1 ) Any update? Tomorrow it will be a week since the loan went back in for processing. 2 ) Any update on the compliance issues and how that will be handled? Thanks, XXXX XXXX XXXX replied with the following : Loan was returned from the Compliance dept last week. It is in Processing status. Need mortgage insurance certificate back. Once loan is Approved to Close, XXXX will confirm close date with you. I replied to XXXX with the following : What was the end result with Compliance? Mortgage Insurance certificate attached along with a paid receipt for the Homeowners Insurance. Any idea on when potential closing will be? After not hearing anything on my last email, I sent the following email to XXXX, XXXX, and XXXX on XX/XX/XXXX : Any update on our refinance? I never received a response on the email below XXXX XXXX Since we have not heard anything and our closing has already gone past the XX/XX/XXXX projected date, I had my wife, XXXX, call XXXX on XX/XX/XXXX to find out what was going on. XXXX called and it went straight to voicemail. XXXX left him a voicemail to please call her back. XXXX immediately called XXXX back and stated he thinks he has everything that is needed, but they are very short staffed at the moment. XXXX stated he would check to see that the underwriter and processor has everything that they need. XXXX stated the goal is to close by the end of the month. XXXX asked for a disclosure statement again since we still have not received one. XXXX stated he would call back with an update and that right now it is taking two business days to get any response back from underwriting. The Initial Closing Disclosure was emailed by Regions that same afternoon at XXXX XXXX. We never received a phone call or any follow up from XXXX. I spoke to XXXX on the phone at XXXXXXXX  XXXX   after I had received the Initial Closing Disclosure. I asked XXXX why I am agreeing to the Initial Closing Disclosure when it does not match my Loan Estimate. The Initial Closing Disclosure has a section where it states what the Loan Estimate stated versus what the Initial Closing Disclosure states. XXXX became very agitated with me on the phone and stated he could try to find the disclosure but that I knew that it was going to be more due to my appraisal. I asked if he had a copy of it as this is something that I have not seen. XXXX stated that it is somewhere. I then asked XXXX if this was compliant or against Consumer Financial Protection Bureau XXXX. XXXX then accused me that I was going after him because my appraisal came in less than what was projected and that I simply wanted Regions to pay for the difference and that was not going to happen. XXXX then continued by yelling three times, Are you threatening me? I stated to XXXX that no, I am not threatening him, I am just trying to understand why I was never given a different loan estimate that reflected what was shown on the Initial Closing Disclosure and I am trying to figure out what is going on. XXXX made the suggestion that he requests that I withdraw the loan or that he would cancel the loan immediately. I stated I have no interest in the loan being cancelled as this is a great rate and would put my family in a better financial position. So far this loan is back on track with closing expected on XX/XX/XXXX. I still dont understand why a new loan estimate was never given to me by Regions Bank. Per XXXX, a different loan estimate exists from the one that I originally received, but for some reason I am not privy to the new loan estimate. The questions that I have on why my PMI is higher than what my previous loan have still not been answered. 
I have typed out a timeline of events that will take you from XX/XX/XXXX to XX/XX/XXXX in regards to the number of emails and conversations that I had with the representatives of Regions Bank. We first asked for a new estimate/disclosure on XX/XX/XXXX and it has taken until XX/XX/XXXX to receive anything from Regions Bank and that was in the form of an Initial Closing Disclosure. 
I went to closing on XX/XX/XXXX and spoke with our closing attorney, XXXX XXXX at XXXX XXXX XXXX XXXX, XXXX about the issues that we were having with the loan. XXXX was extremely concerned about the way my wife and I were treated through the process and he suggested we proceed with the refinance at this time with the rate being so low. For the refinance to proceed and Regions Bank to fund the refinance, we made the decision to sign all documents saying that our loan estimate matches our closing statement even though we all knew this was false. My fear again was XXXX had already tried twice to cancel this loan and if we did not sign the document, my thought was that XXXX and Regions Bank would not fund our refinance. XXXX also suggested that once the loan is closed and funded, we should move forward with submitting a complaint with South Carolina Department of Consumer Affairs and Consumer Financial Protection Bureau.