Consumer complaint received 2015-07-03
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (CA)

I made on offer on a home in XXXX XXXX for ~ $ XXXX that was accepted by the seller on XXXX/XXXX/15 with a XXXX escrow. I had a pre-approval letter from BofA for $ XXXX under the XXXX loan ' program requiring 5 % down and no PMI. All requested documents were provided in timely fashion, including a gift letter from my parents stating they had gifted a portion of down payment. During routine status checks by all parties involved in the transaction, everything appeared normally and on schedule. On XXXX/XXXX/15 ( XXXX days prior to the closing date ), I received the first email from BofA indicating there was a problem ... that my loan to income ratio was above their threshold. On the closing date, all parties received the following email : To all applicable parties of the transaction, We wanted to assure that everyone was updated as to the current status of the loan in process. We are leveraging a unique product of Bank of America, more commonly referred to as the " XXXX XXXX. '' We take ownership that at the initial intake of the application, we did not account for all of the calculations adequately. However, we are working to quickly close those gaps and have added an additional borrower to the loan which allows us to meet the thresholds for this specific program. Both applicants are well qualified and combined to the best of our knowledge, meet all the requirements of the XXXX XXXX as it is presented to us at this time ; the applicants have been forthcoming and timely on all information asked of them. the file is in for review with the processor now who intern will have the underwriter sign off the conditions as it relates to the co-borrower, which to date have been provided. Due to the time-sensitivity of the closing, we have stressed to the processing team the urgency and have requested that the file be expedited for review. It would be prudent to set expectations for loan docs signing and funding no later than XXXX XXXX. 

Our goal is, of course, to close this as soon as possible, however this timeframe allows us to complete our due diligence and allows for any unforeseen items that the underwriter may uncover during the final review. We will also need a final addendum reflecting the new Close of Escrow date as well as adding the co-borrower. 

You have my commitment to be transparent and readily available to answer any and all questions and do my best to assure a smooth process from here on out. XXXX XXXX is XXXX of our Senior Loan Officers and will continue to be intimately involved with the loan and also available for any questions or concerns. 

I want to in advance to thank everyone for their patience and understanding. If any questions, please let me know and after review of the aforementioned, please forward on the fully executed addendum. 

XXXX XXXX XXXX XXXX XXXX Loans ManagerXXXX County XXXX XXXX NMLS XXXX Division, XXXX XXXX XXXXThis email was intended to take responsibility for the failure to meet the escrow closing date and request an extension. The extension was agreed upon. On XXXX/XXXX/15, I received an email from BofA asking for a long list of additional documents and included the following statement:4. We need to show additional bank statements to meet reserves requirements of 5 % of the Purchase Price {$27000.00}. Your own funds in the file at this time are {$21000.00}. Per guidelines, the applicants need to show 5 % of their own money. 

Even though they were already aware of the gift letter ( provided during XXXX week of escrow ), they changed their policy to then require the 5 % come solely from my own funds. Such deceptive and negligent tactics led to loss of the home, loss of the {$8000.00} deposit, displacement from my existing home, and accrual of numerous unanticipated expenses related to moving to a new, smaller, more expensive rental.