Consumer complaint received 2015-11-28
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: HANCOCK WHITNEY BANK (FL)

We opened a construction loan with Hancock Bank ( a division of Whitney Bank ) to build a new house in XX/XX/XXXX. As of XX/XX/XXXX our house is still not complete because the bank is not requiring the builder ( XXXX XXXX XXXX XXXX XXXX ) to adhere to the draw schedule set forth in the builders agreement. We had a draw schedule in our builders agreement which set forth specific goals that would be met during the construction process before the builder would be allowed reimbursement by the bank. Neither the bank nor the builder is following the draw schedule which has allowed a '300 day completion ' for the house per the builders agreement to balloon into over 900 days from contract signing without a completed house. From the very beginning of the process the bank allowed the builder to draw more money than allowed per the builders agreement. The initial down payment at closing should have been XXXX % but the bank gave the builder XXXX %. It took the builder 7 months after getting XXXX % from the bank to get building permits for the house. There are no penalties or completion date in the building agreement so the only schedule that had any deadlines or accountability to it was the draw schedule. The builder would be required to complete a certain portion of the house before being reimbursed by the bank. The builders agreement had XXXX draws in it. The bank has already allowed XXXX draws and the house is not complete. The bank has undermined that schedule by allowing the builder to break down the draw schedule into a percentage completion draw schedule. The bank has paid for as little as XXXX % work completed. On average the builder is completing XXXX % per month and being reimbursed regularly by the bank. I have objected to this from the beginning but when I refused to sign the XXXX % draw schedule the builder stopped work completely. Allowing the percentage completion draw schedule without a completion date or penalties has allowed the builder to take as long as he wants to finish the house. He has no money on the table. If he spends {$100.00} the bank reimburses him. The bank has been pro builder from the very beginning. It 's like the old days where the bank and builder get together and the consumer is left to fend for themselves against XXXX professional firms who know how to game the system. I was treated harshly from the Sr mortgage construction officer saying there was nothing the bank could do and that 'this was my guy, I picked the builder not the bank. I needed to work it out with the builder '. But again, when I asked the bank to abide by the draw schedule in the builders agreement, they would n't do it. I also told the builder I wanted to abide by the builders agreement and they refused saying the bank was willing to pay on a percentage completion basis and they would refuse to work until I agreed to percentage completion. I 'm caught in this vicious circle where I ca n't get my house completed. I have a 15 year mortgage with the first 12 months as the construction period where I pay interest only. The construction period began XX/XX/XXXX, which is now 2 years 2 months of interest only and the fixed portion of my mortgage is reduced to 12 years 10 months to pay off the entire mortgage balance-subject to house completion date. The bank set up one meeting with the builder in XX/XX/XXXX after I told the bank I was going to file a complaint with the CFPB. After that meeting the bank sent one follow up email last week after I reminded the bank that the builder said the house would be completed by XX/XX/XXXX. The builder called for another inspection last week and the house was another XXXX % complete ( since XX/XX/XXXX, averaging XXXX % per month for the last three months ) for a total completion of XXXX %. The bank paid the draw. At this pace, it will be another 3 months before the house is complete