Consumer complaint received 2015-07-13
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: FIFTH THIRD FINANCIAL CORPORATION (KY)

I have a construction loan through XXXX. The XX/XX/XXXX ( XX/XX/XXXX ) I began the process of converting it into a 30 year mortgage with 5/3 Bank. I was given a rate of 3.875 and closing costs of {$2000.00}. I was told on XX/XX/XXXX that because we had financed the home ourselves and not purchased it from someone or from a contractor that the loan would not be considered a " new purchase '' but would be considered a " refinance ''. I got very concerned and sent an email out to the lady that had been handling the loan thus far, XXXX XXXX of 5/3 Bank and asked her to let me know if this would affect my rate at all. XXXX XXXX is Vice President of 5/3 XXXX branch. On XX/XX/XXXX I received an email from XXXX XXXX stating my rate would in fact remain at 3.875. I told her to go ahead with the loan process and the appraisal. I began receiving calls from a mortgage processor, XXXX XXXX, from 5/3 Bank on XX/XX/XXXX. I received a Mortgage Pricing Agreement from her via email that same day stating the terms of the loan with a rate of 3.875 and was told that as of that day our loan had a " locked in rate '' of 3.875 and the closing costs were {$2000.00}. 
I told XXXX I was getting very concerned about how long this process was taking because we had gotten the certificate of occupancy XX/XX/XXXX and had been moved in since then. We wanted to close ASAP on the loan. She said it should n't be too much longer that it was all in process and they were waiting on the appraisal. 
The appraisal was done XX/XX/XXXX. XXXX told me it would be back on Monday, XX/XX/XXXX. It finally came back and I received an email from XXXX on XX/XX/XXXX telling me what it appraised at. The home appraised at {$280000.00}. We were told we could borrow 80 % of the appraised value which would put us at {$220000.00}. We were only asking for {$200000.00}. I called XXXX and told her that to finish the yard was going to cost {$6000.00} and the closing costs were {$2000.00} and I would like to add both of those into the loan making the loan total {$200000.00} even. She said it would be no problem because we had not yet reached 80 % of the appraised value. On XX/XX/XXXX I received an email titled Truth in Lending Disclosure Statement in which the details of the loan were spelled out. Again, it listed my interest rate at 3.875 but it still had the borrowed amount listed as {$200000.00}. I emailed XXXX on XX/XX/XXXX and told her to call me ASAP because I did n't want wrong numbers being plugged in to my loan paperwork to cause even further hold up in our closing process. She replied that she was out and asked if it was ok to call me on Saturday morning. XXXX called on XX/XX/XXXX to discuss the loan. She said she wanted to go over my " payment amount ''. When she quoted me what my payment was going to be I knew something was n't right. I questioned what she had my rate as. She told me that my rate had changed to 4.25 % Never once did she volunteer the information until I asked. When I asked why she said it changed when the loan was changed from a purchase to a refinance. I told her I had it in writing that it was 3.875 % as a refinance. She then said well then it is because we had a cash out amount. I told her our original loan amount was {$230000.00} and we had only hit {$200000.00} so that was not the case either. She then told me it was because the appraisal came back lower. I told her we had not even hit 80 % of our appraised value then she tells me that on certain types of refinances they can only loan 75 % of the appraised value. 75 % puts us at wanting to borrow {$210000.00} which we were n't. I told her to just forget it, that we would take the loss of the {$6000.00} and pay it out of our personal acct and we would pay the closing costs too so to go back to the original loan amt of {$200000.00} so that the terms would go back to 3.875. She said they could n't do that, that the terms had changed. What terms? We had a LOCKED IN RATE of 3.875.