Consumer complaint received 2021-07-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: JPMORGAN CHASE & CO.
State: IL

Complaint narrative:
We ( XXXX as the borrower, XXXX as the Co-buyer on the purchase contract ) were approved to purchase a 2nd home in XX/XX/XXXX using 100 % gift funds for closing provided by XXXX. We had a house under contract and cancelled that contract. We were told the application is property specific so we had to start a new application. We re-applied and were re-approved to continue looking for a 2nd  home using 100 % gift funds for closing for the second time. XX/XX/XXXX we finalized contracts on the 2nd property. 

The Loan Officer - XXXX XXXX - NMLS ID XXXX - confirmed on a recorded call with XXXX, myself and XXXX that no borrower contributions were required. XXXX read Chase guidelines for what was needed on gift funds and confirmed when specifically asked about borrower contribution that XXXX  had done away with borrower contributions. XXXX also confirmed on e-mail that he did not know why that 5 % borrower contribution condition was on the loan when it showed up weeks after we submitted our documents. The condition would be removed from our tasks then reappear again days later. XXXX told us the condition showed up because we still needed {$17000.00} funds to close after the {$15000.00} earnest money was wired to title. This number doesnt even make sense. $ XXXX purchase price minus $ XXXX loan amount is $ XXXX ; minus $ XXXX earnest money is $ XXXX. 

At nearly XXXX on XX/XX/XXXX, XXXX tells us that 5 % was definitely required to be provided by XXXX. This is after the realtors confirmed with Chase that we are approved as the finance contingency was now expired making the $ XXXX deposit non-refundable. XXXX had clearly known long before he called us because he had conversations with the underwriter and spoke to his manager after their meeting earlier that day but did not call us until almost XXXX our time and was also right before he was about the leave the office for the weekend. We questioned him about the earlier conversations and emails that said It was not needed - he stated, My bad, I guess I learned my lesson the hard way and that he is not familiar with XXXX  homes. When asked what would happen with our $ XXXX deposit he stated that we would lose it but he could make a call to the realtor if we wanted him to. 

We asked XXXX about Chase paying us back because he made a mistake on the approval ; and he stated Chase would not and that he may end up with a slap on the wrist. He said 5 % from XXXX was needed because it was a XXXX home. This was the intent the entire process to buy a XXXX home but XXXX provided an approval based on 100 % gift funds which is not allowed on XXXX homes so we actuality never would have been approved on the structure we applied for and we are told after our deposit became non-refundable. He said his manager asked if we could switch to a primary residence because we can do primary residence at 100 % gift funds. We asked if that was even possible to switch. He said yes we can switch and he will talk to the underwriter. During this call - XXXX presented 2 other options - # 1 XXXX has 5 % of the assets but it is in the XXXX so we wanted to know if this is OK or if it had to be liquidated. # 2 was to provide a joint bank statement but XXXX said he did not think we had one but we do have a joint account. So, as XXXX and his manager XXXX suggested, they then switched our loan to primary home and if this was not allowed, we would resolve the condition with option # 2 or # 3 that XXXX presented. 

Switching to a primary residence was not a big deal to us because we planned to move there full time before summer of XXXX but we agreed we would fast forward our plans to move closer to family. XXXX had the VP of her department provide a letter confirming she can work remotely. We were told Monday XX/XX/XXXX that this was all approved as a primary residence. We had 2 outstanding conditions : funds to close of {$17000.00} and for a copy of the remote employee authorization letter which was sent over on XX/XX/XXXX. XXXX wired {$17000.00} to the title company the very next day after we received the approval as a primary residence, XX/XX/XXXX, from our joint account. So regardless of occupancy guidelines they choose to apply this satisfies the 5 % contribution from XXXX. 

XX/XX/XXXX 8 days before closing - there was a status on my account that I need to contact my Mortgage Banker. NOT one person contacted me! I called XXXX had no reasoning. I called XXXX ; he also had no answers. AGAIN, at XXXX on Thursday XXXX called with bad news telling me my loan was suspended. The file was flagged because of the occupancy change. He also says again that he was off Friday and Saturday. He stated that we could try and call someone else but gave no names or phone numbers for anyone! He keeps saying how 'terrible ' he feels for XXXX  things up for offers no help or solutions for anything other than saying we should go after them and keep pursuing it. I am pretty sure if we changed occupancy to an investment property the file would not be questioned or required to provide any documents but when we provide all documents requested to purchase as a primary residence we are declined outright and Chase refuses to do the loan at all now. 

XX/XX/XXXX We are trying to reach out to all contacts. Multiple emails and voice mails were left with no response at all from XXXX  manager - XXXX XXXX XXXX, XXXX ID XXXX, XXXX XXXX Team Manager. We finally get XXXX manager and spoke to XXXX XXXX, VP of Lending. XXXX took almost 3 hours to find out the loan is declined but otherwise was completely useless. The Title company is trying to prepare figures and XXXX does his best imitation of a broken record repeating saying we will get a letter in the mail but refuses to provide any information on why. He refuses to acknowledge the mistakes made by his employee - XXXX - that lead us to this point. He refuses to accept any responsibility for his team or acknowledge the fact that we have already invested in the ballpark of $ XXXX to buy a house Chase issued an approval for based on the wrong guidelines. 

This entire loan approval with Chase has been one big misrepresentation by XXXX from the beginning with the initial loan pre-approval. We made multiple trips paying for airline tickets, car rentals, hotel stays while we were looking for a property based on false pretenses because Chase gave us an erroneous approval but did not tell us the true story until after our ability to cancel the contract had passed which made our deposit non-refundable. We spent thousands of dollars on non-refundable deposits for new furniture, landscaping, a hot tub, antique decorations, and now a storage unit because we had an approval in hand and we satisfied all conditions. Chase provided an erroneous approval based on primary residence guidelines when from day 1 when indicated we were buying a XXXX home. When XXXX and his manager tried to cover his mistakes, he caused our file to be declined even though we meet all guidelines. 

Chase records the phone calls so everything stated here can easily be confirmed by reviewing their phone logs and emails. The escalation department ( XXXX XXXX & her mgr, XXXX XXXX ) has reviewed all the recorded calls and acknowledged the error is the fault of their loan officer XXXX XXXX over 2 weeks ago. They still have not provided us with any firm answers other than they will get back to us, people were on vacation, we need to have a meeting, or the file has to be reviewed. Days later we follow up and get pushed off again. Today more people are on vacation. 

Chase doesn't shut down when people go on vacation. All docs were provided all conditions and guidelines are satisfied so it does not take 2 weeks to issue a clear to close. We want this loan closed and we want reimbursement without further excuses or delays.

Company response to consumer: Closed with explanation