Consumer complaint received 2018-08-26
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: MB FINANCIAL, INC. (VA)

Letter submitted to MB Customer Service : MB Customer service, At this point I went ahead and closed on the house because as my realtor, pointed out, if we signed all new documents this past Monday, it would require the sellers to have to come in and re-sign which would mean they incur additional penalties, and we were told they were not going to do that. 
As you can imagine I am completely frustrated with the whole process of working with MB with this loan. I originally made the decision to go with MB because of good initial conversations with XXXX, the great rate I was able to lock-in as well as the {$3000.00} lender credit. One of the initial emails I received from my loan officer when I was shopping around for a lender instilled confidence in me, The home buying process at MB combines everything you would look for in a lender - great loan products with great customer service. We keep the home buying process simple so you can focus on what's really important turning your next house into the perfect hometime is everything, and we understand the necessity of a quick closing so you don't lose out on a great deal. Get started on your home loan today BUTas we got closer to the closing date, both myself and my realtor grew increasingly frustrated because of issues like how the stain in the garage ceiling and the broken window ( which was never actually broken to begin with ) were being handled. Everything seemed to drag on and when we thought we had satisfied questions or provided documents that were requested, there was always one more thing. 
Regarding the two issues ( stain on the ceiling in the garage and broken window that seemed to plague the whole process, on/about XX/XX/XXXX, I emailed MB letting her know that we had coordinated with the sellers to hire a mold inspector. I also informed her that the sellers had already hired a window repair company and the repairman found that the window was never broken and provided us a receipt dated XX/XX/XXXX which was forwarded on to MB. Because we were unsure of what was done to the window, both myself and my realtor reached out to the window company and spoke with individuals at the company and the repairman to confirm that the window was indeed never broken. 
So by Friday, XX/XX/XXXX, MB had the receipts from the window repair company as well as the mold inspector ( inspection was performed on XX/XX/XXXX in the morning ). Both myself and my realtor emailed MB before noon querying as to the status of closing and if there were any outstanding issues that needed to be addressed. At that point I also inquired as to a list of settlement charges and when I could expect them. I never received an answer. Despite the fact that receipts were provided for the window repair and the clear mold inspection report, we were informed the underwriter was now requesting the appraiser to go back out and verify the window was fixed. Keep in mind it was never broken to begin with. This took both my realtor and I by surprise since not only were receipts provided, but an email was sent attesting to the fact that the window was never broken. In order to expedite the process, I even provided the name and contact info of the repairman so MB or the appraiser could contact that individual to verify what was done. Both my realtor and I offered to go out and take photos and provide those if that would have helped. My realtor expressed that the appraiser needed to get their actions done by Friday XX/XX/XXXX or first thing Monday XX/XX/XXXX in order to keep things on schedule. 
On Monday, XX/XX/XXXX my realtor finally was able to get in touch with the appraiser and speak with him and provide him all the info he required so he could draft a report to MB indicating that no further inspection was required. Sometime around XXXX pm XXXX, per the appraisal company, the appraisers report was uploaded to the VA portal. Unfortunately, both my realtor and I were informed by MB around noontime EST that closing would not happen on XX/XX/XXXX and it was now delayed to Thursday XXXX. My big question is why did MB not coordinate with the appraiser back on Wednesday XX/XX/XXXX or Thursday XX/XX/XXXX to go out and do the re-inspection or at least draft the report? I received an email from MB on Wednesday XX/XX/XXXX at XXXX EST which stated ( I cut and pasted this directly from his email ) : The highlighted items summarize the underwriters reply. 
A final inspection is required by the appraiser for the window. 

If MB knew on XX/XX/XXXX that the appraiser would have to take some actions regarding the broken window, why did it take until Monday XX/XX/XXXX to get it done which caused the first delay in closing? What also causes me grief is that the appraiser did not even do a re-inspection. He only drafted a report and submitted it and I was charged {$140.00} just for that and it caused a delay in our original closing date?!? 
I queried MB later that day on XX/XX/XXXX as to when I could expect a XXXX so I could review the loan # s as soon as possible. Around XXXX XXXX, the 2nd bomb for that day dropped when we were informed that closing was now delayed yet again to XXXX. According to MB, the reason for this is because, the appraiser was required to make with added correspondence for the window, a revised loan estimate was sent out earlier today disclosing that fee. That re-disclosure is a mandatory document. Regulations state that the earliest date that a Closing Disclosure can only be sent is the day following acknowledgment of the most recent Loan Estimate. The closing can be set for XXXX. 
In order to avoid this delay, Id have been happy to write a check directly to the appraiser and avoid the whole updating of the CD if it meant that we could have kept the closing date of XXXX. This is something that MB should have thought about and made that offer to me. 
On Tuesday, XX/XX/XXXX I queried MB yet again for loan documents closing information so I could review them. I finally received an email at XXXX XXXX stating I could now access the new CD and review it. I reviewed the document and was pleasantly surprised to see that I would be getting back {$6300.00} at closing. MB asked if I had any questions and I informed him I did have questions and documented the following in an email to MB : 1. Line G8 - what is the {$890.00} aggregate adjustment? 
2. Line L13 - What is the {$850.00} adjustment for items unpaid by the seller? It looks like the seller and I are paying county taxes from XX/XX/XXXX through XX/XX/XXXX? What does it mean unpaid by the seller and why do I pay that since I don't even live at the property? 
3. In the section " calculating cash to close '' I see the seller credit of {$2500.00} in the loan estimate column, but not in the final column and can't find the {$2500.00} being applied as a credit in section L. 

So as this stands now, I should expect to receive a check for {$6300.00} at closing? 

I never received an answer to any of these questions. I again asked MB on XX/XX/XXXX at XXXX XXXX if they were able to get answers to my questions. My realtor followed up asking if answers were going to be provided and MB informed us at XXXX XXXX that, the closing department will be following up with the final balancing numbers from the title company. The initial draft is rough and not finalized. 
On Thursday, XXXX at XXXX XXXX I sent out an email to MB and the title company asking, Good morning. Looking for the final closing numbers so I have time to review. I want to make sure all credits are accounted for and the questions I asked the other day are answered. This way closing tomorrow morning can go smoothly and all I need to do is sign documents. I received a pretty quick response from XXXX XXXX letting me know they had not received the lender CD. At XXXX XXXX XXXX XXXX reached out to MB inquiring when they could expect the lender CD. At this point we were still dealing with the garage ceiling stain issue at the XXXX hour with a NEW request from MB to have the home inspector ( who is not a trained and certified mold inspector ) submit a letter stating that no mold was present despite the fact that a certified mold inspector had already submitted a letter clearly stating that no mold was present. I never did receive any final numbers that day. 
Closing was scheduled for the sellers around XXXX on XXXX. At XXXX XXXX, I asked MB when I could see documents so I could start looking them over. I received a reply at XXXX XXXX that he would send them as soon as they are available. Having draft documents would have been great at this point. I showed up to closing around noon and much to my overwhelming disappointment, not all the credits that I was entitled to were accounted for. The one thing I had feared might happen at closing did indeed happen. Based on the CD that I had been provided on XX/XX/XXXX, I was under the impression that I would be receiving at least {$6300.00} back at closing and quite possibly more since I still had not accounted for the sellers credits on that CD. Obviously when I found out that I would only be getting back {$5000.00} at closing, I was a little irate. My realtor and the title agent explained that I could not receive money back at closing that was more than my earnest deposit ( $ XXXX ). However, they did explain that with VA loans, there are several other things that excess credit at closing can be applied to. My realtor did a simple XXXX search and came up with several options. What amazes me is that MB, who should be very knowledgeable on this whole process and have a thorough understanding of VA loans and what you can and can not do, apparently did not even think of this several days prior to closing. My realtor had addressed this issue with MB back on XX/XX/XXXX when she sent an email to MB stating the following : My client sent me your information. I understand he has selected XXXX XXXX   as his lender for the purchase of the property located at XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX ( ratified contract attached ). I wanted to share some information with you to ensure the process moves as swiftly and smoothly as possible. 
Some important highlights about the contract : Settlement on Wednesday XX/XX/XXXX afternoon ( no time set ) Home Warranty - paid by seller per contract. Buyer has not yet selected home warranty company Rebates/Credits to buyer : o {$4800.00} ( XXXX XXXX Buyer Broker credit ... rebate letter attached ) o {$1000.00} ( Customer Realty broker credit via contract addendum .... attached ) o {$2500.00} ( Seller Subsidy ... via home inspection removal addendum ... attached ) o {$3000.00} ( I also understand that XXXX XXXX  is providing a Lender credit ) Note : If rebates exceed closing costs, as you know VA loan permits pay off of debts, advance payment of XXXX fees, etc. so we would like to look for these opportunities. As another option, buyer would like to designate monies to build a fence on the property ( per escrow? ). If for any reason all credits can not be utilized, please let me know as I would prefer to give priority to XXXX XXXX credit as first opportunity for reduction. 
This same email was forwarded to MB again on XXXX. We brought the issue of potential excess credits to the attention of MB back in XXXX and XXXX hoping we would not run into this problem at closing. Yet we still did. Why? Had the issue of having excess credit been raised by MB ( which we had already informed them of back in XXXX and XXXX ) back on XX/XX/XXXX, XX/XX/XXXX, XXXX or even the early morning of closing on XXXX, we could have addressed it and ensured that all credits at closing due to me were properly utilized. If the CD that was submitted to me on XX/XX/XXXX was even remotely accurate, I would have raised the issue on XX/XX/XXXX and there would have been ample time to handle the issue. Finding out about this issue at the XXXX hour and XXXX minute on the day of closing and that there are credits that I was simply going to lose is completely unacceptable and now I am looking for MB to make things right. 
This should become a good teaching moment and educational opportunity for MB to use with all its loan officers and underwriters so this does not happen with other clients. I would like MB to send me an updated CD reflecting all the credits that truly are due to me and I would like MB to find some way to make this right. I have been repeatedly told that everything regarding funds with this loan has to happen at the closing. XXXX informed us that, All funds involved with the loan must be disclosed on the Closing Disclosure. I have already closed on this loan because I have been inconvenienced enough, so I am sure there is some other way to make this right. MB is a lending institution, so get creative and make things right and use this opportunity to teach your loan officers and underwriters. I am sure that MB can find a way to send me funds outside of the closing disclosure to make things right, but I leave that up to you. 
Regards, Post-closing interactions with MB : After closing I addressed my issues with my loan officer and he elevated my concerns to MB, VP Consumer Direct Business Development. I had several emails and phone calls with the VP and he basically informed me that MB would not cut a check to me outside of closing. He informed me that they did all they could do by re-doing the numbers and re-scheduling closing for Monday, XX/XX/XXXX. He did put me in touch with another person, SVP Senior Vice President. 
I had a discussion with this VP to express my dismay and he said hed look into it. I never heard back from him and left several messages which went unanswered. When I finally was able to connect with him and talk with him, I got the same answer in a less-than cordial customer service manner. MB would not do anything. From this VP, I got the impression he was blowing me off and probably never really looked into my issue. 
So at this point, I am very unsatisfied with MB and even more so that at no point has MB ever apologized or acknowledged they screwed up. Clearly they know they screwed up if they offered me a chance to delay my closing, but at no point has anyone ever apologized.