Consumer complaint received 2016-10-18
Product: Mortgage — Home equity loan or line of credit
Issue: Settlement process and costs — 
Company: SUNTRUST BANKS, INC. (GA)

Improper Procedures Regarding SunTrust Access 3 Home Equity Line of Credit : As an existing SunTrust customer with a SunTrust first mortgage, I received several online solicitations and was actively solicited in the branch for a home equity line of credit ( which SunTrust calls Access 3 Equity Line of Credit ) during XXXX and XXXX XXXX. The numerous online customer cross-sell solicitations promoted a low introductory rate of 2.99 % with no closing costs or fees. As a result of the heavy cross-sell promotions, I was persuaded to apply for the Access 3 Home Equity Line of Credit on XXXX XXXX, XXXX. Due to my stable employment and income as a SunTrust employee, my application was approved and a full appraisal was ordered. The full appraisal ordered by SunTrust Bank was completed on XXXX XXXX, XXXX and valued the home at {$820000.00}, significantly higher than any previous appraisals. At the time of the application, I had a SunTrust first mortgage with a balance of {$450000.00}. I also had a XXXX XXXX XXXX XXXX XXXX line with a credit limit of {$100000.00} and balance of {$81000.00}. SunTrust approved the new Access 3 Home Equity Line of Credit with a {$200000.00} credit line and committed that SunTrust would pay off and close the home equity line with XXXX XXXX XXXX. The new SunTrust line of credit combined with the SunTrust first mortgage created a loan to value ratio of 80 % assuming the XXXX XXXX XXXX line of credit was paid off and closed. The SunTrust Access 3 Home Equity Line of Credit was opened at a local SunTrust branch on XXXX XXXX, XXXX. I signed SunTrust closing documents stating that the XXXX XXXX XXXX Home Equity Line of Credit balance of {$81000.00} would be paid by SunTrust and closed on my behalf resulting in the removal of the property lien associated with this loan. I also signed the payoff letter that SunTrust committed to use to payoff and close that the XXXX XXXX XXXX credit line. I monitored both home equity credit lines over the following two months and saw that the XXXX XXXX XXXX credit line was neither paid off nor closed. I called the SunTrust branch office that opened the loan and informed them of the lack of payoff and closure. I was told to continue to wait and keep monitoring. After several weeks passed, I notified the branch office twice via phone message that the XXXX XXXX XXXX account was still active with a balance but never received a response. SunTrust 's obligation to payoff and close the XXXX XXXX XXXX Home Equity Line of Credit and remove the lien on my property was clearly described in the SunTrust closing documents including the " Disbursement Request and Authorization Form '' and " Payoff Authorization Letter ''. SunTrust failure to fulfill this obligation created a loan to value ratio of 93 % ( first mortgage balance {$450000.00} + SunTrust HELOC {$200000.00} + XXXX XXXX XXXX HELOC {$100000.00} = {$750000.00} / {$820000.00} = 93 % ). This exceeds any reasonable mortgage LTV ratio recommended by banks, financial institutions and government agencies. I was laid off in XXXX XXXX and was left with no source of income. SunTrust 's improper procedures and failure to adhere to the Home Equity Loan contractual agreement and payoff and close the XXXX XXXX XXXX credit line has left me with an exorbitant LTV ratio, minimal home equity value, a precarious financial situation and an additional lien on my house.