Consumer complaint received 2021-04-03
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: TD BANK US HOLDING COMPANY (NY)

TD Bank informed me by email on XX/XX/2021 that my loan was cleared to close on XX/XX/2021. I received a Closing Disclosure ( CD ) on XX/XX/2021, within the 3-days required before closing ; however, the closing costs totaled {$6900.00} and cash to close was {$6100.00}, which was not a good estimate, given that I was closing a modification ( XXXX ) with reduced mortgage tax and title insurance costs. I requested a copy of the final updated CD with the correct fees to determine how much funds I needed to have at closing. The title company confirmed that they provided the title fees to XXXX in early XXXX and an updated copy in early XXXX so the CD could have been prepared with more accurate fees. I also needed the time and location of the closing to make plans. There was no response and no confirmation whether or not the closing was still happening on XX/XX/2021. 

On XX/XX/2021, I contacted the Mortgage Originator and asked for a new closing date of XX/XX/2021, and again, asked for the final CD but did not receive a copy. My closing was scheduled at XXXX on XX/XX/2021 ; the bank attorney asked for a later time at XXXX as he was still waiting for the CD to be finalized. I received the CD from XXXX XXXX at XXXX, less than 2 hours before my closing, requiring {$2000.00} cash to close. I noticed an error and immediately emailed XXXX at XXXX to discuss the CD before closing but no response. I asked the bank attorney to contact the closing team and he said he would try to get the CD changed but it did not happen. We got to the closing and the Notary and Title Closer was not informed that a request was made for a revised CD, and she only had one set of documents, which meant no copies for us to review during the 3-day rescission period. XXXX did not provide the closing documents to us electronically. I had to ask to make copies at the closing location.

Noted CD Errors The CD provided on XX/XX/2021, disclosed fees for Section B ( Services Borrower Did Not Shop For ) totaling {$77.00} ( Credit Report fee {$45.00} - Flood Certification {$5.00} - Tax Service XXXX ) and Section C ( Services Borrower Did Shop For ) included title-related fees that I shopped for as I opted to choose my own title company. The fees were inflated but I suspected they would be reduced to reflect the actual title company 's fees at closing. 

The CD provided the day of closing, XX/XX/2021 included two additional fees required by the bank 's attorney totaling {$1600.00} ( {$1200.00} Settlement and {$350.00} to prepare the XXXX doc ) that was not disclosed in the Loan Estimate provided at application on XX/XX/2021, or the CD provided on XX/XX/2021. Additionally, these were not fees I could shop for but TD Bank incorrectly disclosed these fees in Section C, which was inaccurate, and not permitted. I asked the attorney to ensure that these bank required fees are accurately disclosed in section B and also have the closing department explain why these fees were not previously disclosed. No response. 
The final CD included a {$350.00} " Doc Prep Fee '' payable to the title company but the title company does not charge that fee as disclosed in the final CD. This fee is not included on the Title company 's title bill. I asked the banks attorney about the fee and he shared that its a buffer charge to cover any unknown fees that may emerge that were not disclosed. Again, this last minute added charge, which is incorrectly disclosed as a title company doc prep fee that I shopped for, does not meet the spirit of transparency required by TRID. When I asked about this fee, the attorney noted that if theres no additional charge then the amount is refunded the day of funding. The problem is, that important detail was not shared until I asked about it as it was masked as a required fee. This buffer charge should be clearly and separately listed as an attorney escrow amount for miscellaneous funds and an upfront disclosure that it is refundable if not required so that Im aware. It is my hope that these masked buffer fees are actually refunded to customers when no such miscellaneous charge exist. 

TD Bank should engage attorneys who understand the Truth in Lending requirements and not just trying to collect fees, by any means necessary. The most troubling discovery of all is that the banks attorney shared that it has been an issue for some time as he was aware and informed XXXX in the past that they should disclose the attorney fees upfront but the issue remained unresolved. He then said thats the fee he charges and must be paid regardless of where it is listed on the CD. This statement confirms a major problem because it does matter where the banks attorneys fees are disclosed on the CD as it impacts the 10 % threshold limitations for Section B. You can not just slip fees in on the day of closing and mask them as services I shopped for that I did not. This is extremely disappointing and frustrating to hear and concerns me for other consumers who are not familiar with the requirements. 

Regulation Z Section 1026.37 ( f ) ( 2 ) requires that for services you can not shop for, the bank should disclose that it is a component of title insurance or is for conducting the closing, and the introductory description Title - shall appear at the beginning of the label for that item. The CD did not meet this regulatory disclosure requirement for Section B of the CD.

Regulation Z Section 1026.19 ( e ) ( 3 ) ( ii ) provides that certain estimated charges are in good faith if the sum of all such charges paid by or imposed on the consumer does not exceed the sum of all such charges disclosed pursuant to 1026.19 ( e ) by more than 10 percent. Section 1026.19 ( e ) ( 3 ) ( ii ) permits this limited increase for only the following items : i. Fees paid to an unaffiliated third party if the creditor permitted the consumer to shop for the third-party service, consistent with 1026.19 ( e ) ( 1 ) ( vi ) ( A ). I was not permitted to shop for XXXX XXXX bank attorney service and these fees exceed the 10 % threshold, permitted for Section B fees. There was no changed circumstance that permitted the bank to increase Section B fees and as such XXXX is required to reduce the fees to the permitted limits. The bank 's efforts to include section B fees the day of closing in Section C to circumvent the tolerance limitations outlined in regulation Z is a violation of law and a deceptive practice. 

It is my hope that this issue was isolated and not systemic due to elevated risk for consumer harm. The TRID requirements were implemented by the CFPB to enhance transparency and to prevent these practices. I am disturbed that XXXX, a CFPB and OCC regulated institution, would not provide adequate training to staff to ensure that they comply with these basic requirements for their role. 

We signed the loan documents on XX/XX/2021 but did not sign the CD because it did not meet the regulatory requirements. We asked to have a revised CD provided during the rescission period that accurately reflects the Section B and C fees that was disclosed in the Loan Estimate and the XX/XX/2021 CD within the permitted 10 tolerance limit as required by law for Section B. There was no response or confirmation that this will happen.