Consumer complaint received 2020-10-08
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: KEYCORP (NY)

On XX/XX/XXXX, I began the process to refinance my mortgage with Key Bank, which held my existing mortgage. I submitted all of the paperwork requested, locked in a rate of 3.0 % with .406 points, and paid an application fee of {$500.00}. 

On approximately XX/XX/XXXX, I received a copy of my appraisal and a notice that my points were being reduce to .29 because the value of my home came in higher than expected, and subsequently my loan to value was lower. 

On approximately XX/XX/XXXX, I received a list of additional documents needed, updated pay stubs, account statements, and additional supporting documents verifying my receipt of child support for my XXXX children, which I have been receiving consistently since XXXX, and will continue to collect for another 4 and 6 years, respectively. 

*Note I can provide copies of emails, and some of the documents that I downloaded, but the bank has restricted my access to all online documents and never provided paper copies of the disclosures I signed. I will attach the original loan statement showing the rate of 3.0 % with .406 points. I did not download the adjusted letter that the bank sent lowering the points to .29. I have call records as well. 

I submitted my bank statements showing the weekly deposit of my child support, and a copy of the court ordered support documentation, which I had already sent on XX/XX/XXXX. 

On approximately XX/XX/XXXX, I was told by one of the mortgage processors, XXXX XXXX, that the bank was not satisfied with the proof of child support due to the fact that I was paid in cash ( which was deposited each week ) for two out of the previous 6 months. She told me in order to prove my child support, the bank wanted me to provide 6 months of bank statements from my ex-husband 's bank account. I stated that I thought that was an un reasonable request and I did not think he would agree to that. I asked if I could provide the previous four months of canceled child support checks, along with a notarized statement from my ex-husband attesting to the dates of the two months of cash payments. She said she would check with her manager and let ne know if that would be acceptable. 

The next morning, on XX/XX/XXXX, I received notification from the bank that my loan had been canceled. The bank also immediately restricted my access to all of the online documents and disclosures that I had signed, and to this day I still can not access them, nor did the bank ever provide me with paper copies  of what I electronically signed online. I immediately emailed my loan originator, XXXX XXXX. When he called me back, he had no idea why I had received the cancelation, he stated he would find out what was going on and call me back. 

On XX/XX/XXXX, XXXX called me and said the loan was canceled in error, but could not be reinstated. He said that I would her to accept the current rate and points which was 3.0 % with .7 points, considerably higher than what I had previously. I was also told that I would have to pay .5 points because of a new fee from XXXX XXXX called an adverse conditions fee, even though that fee was not supposed to go in to affect until XX/XX/XXXX. He said he would work with management to try and get a price adjustment, and in the meantime asked that I submit the notarized statement from my ex-husband along with the four months of canceled checks, which I sent on the evening of XX/XX/XXXX. 

Over the next 10 days, I was told repeatedly from XXXX that he was waiting for management to get back to him. On XX/XX/XXXX, I told XXXX that this situation was unacceptable, XXXX said he would have his manager, XXXX XXXX XXXX I'm not sure if the spelling of his last name is correct ) would call me. 

On XX/XX/XXXX, XXXX contacted me. He admitted that the bank had no right to ask me to provide bank statements from my ex-husband, my loan was canceled due to the bank 's error, and I should not have been told about the extra fees. He said the bank was ready to close my loan at 3.0 % and .54 points, which is still almost double the points from where I was before my loan was canceled. I stated that was unacceptable and at this point, I wanted my {$500.00} application fee back due to the banks incompetent and unethical behavior. He refused to refund my application fee, despite his admission that this whole incident was the fault of the bank, and his failure to honor the rate and points that my loan was at before the loan was canceled in error.