Consumer complaint received 2024-08-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
On XX/XX/year>, I applied for a primary home mortgage with Citibank for {$1.00} XXXX, with a scheduled closing date of XX/XX/year>. 

The loan was conditionally approved by Citibank 's underwriter on XX/XX/year>, just seven days before closing, contingent upon fulfilling a few conditions. I promptly met all these conditions by providing the required documents. 

However, on the day of closing, XX/XX/year>, after all requested documentation was provided, Citibank 's underwriter reversed the decision, alleging that my loan no longer qualified as a primary home mortgage. The underwriter accused me of withholding key information regarding a separate property I had purchased with cash on XX/XX/year>, and claimed I did not disclose this during the loan process. 

These allegations are completely false and damaging. I provided the information via email with explicit mention of the purchase being made using cash and held under an XXXX on XX/XX/year>. Later, as Citibank requested further explanation, I explicitly clarified that this was an investment property and that it was currently in distressed condition and not livable as a primary home. On XX/XX/XXXX and XX/XX/XXXX, I provided a signed letter explaining the situation along with photos of the property 's conditions as further evidence. 

Citibanks conduct throughout this process has been unacceptable. Despite having 30 days to process and evaluate my loan application, Citibank waited until the day of closing, XX/XX/year>, to notify me of this drastic change after a conditional approval, leaving me with no time or recourse to address the issue. The claim that I withheld key information about the cash purchase of a separate property on XX/XX/year>, is completely unfounded, as I had disclosed this information upfront on XX/XX/year>, and provided additional details as requested by Citibank. Despite providing clear evidence, including proof that my current residence had been rented out with a signed lease and proof of rent payment, Citibank unreasonably determined that my new property did not qualify as a primary home. The reversal of the conditional approval on the very day of closing is particularly egregious, as it left me with no option but to face significant financial losses and the potential loss of shelter. 

This abrupt and unfounded reversal of the loan decision has caused immense stress and significant financial damage. I was fully prepared to move into the new home, and my current residence had already been rented out. Now, the seller of the new property is demanding penalty fees due to the missed closing date and has issued a demand letter to close within 3 days. If the transaction does not close in time, I stand to forfeit my earnest money deposit of {$45000.00}. This situation has left me facing the potential loss of shelter and additional financial burdens.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation