Consumer complaint received 2022-11-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: CITIBANK, N.A.
State: FL

Complaint narrative:
This message is to express my severe concern regarding an experience I had with Citibank when applying for a home loan. My Spouse and I have been Citibank members for over ten years. We have two Citigold accounts and several other banking products with the institution. Based on the recommendation of our Citigold Relationship Manager, XXXX XXXX, we contacted Citibanks mortgage department and were successfully prequalified for a home loan. We concurrently completed pre-qualifications with two other lenders. 

On XX/XX/2022, we completed an official loan application through Citibanks website. The Purchase & Sale contract was provided to the loan officer, XXXX XXXX, identifying a closing date of XX/XX/2022. Over the next few days, we received confirmation of our 60-day rate lock at 4.875 %. On XX/XX/2022, we submitted our escrow deposit in the amount of {$20000.00}. On XX/XX/2022 the Senior Mortgage Specialist, XXXX XXXX, confirmed the loan application had been moved to underwriting and would be assigned to a processor within the next few days. 

On XX/XX/2022, the loan officer contacted us stating the underwriter had concerns about the terms of my Spouses employment. For context, he works in the XXXX XXXX and is on a long-term contract with a XXXX XXXX XXXX in XXXX XXXX XXXX He is paid by W2 and is entitled to benefits. This arrangement is very common in XXXX  as well as other industries and should not be an unfamiliar concept to a lender as large as Citibank. The loan officer requested a letter elaborating on the terms of his contract and what the companys conversion process is like. This letter was drafted and submitted by XXXX XXXX that same day. The loan officer also requested the closing date be pushed back to allow the underwriter more time to review the loan documents. The closing date was subsequently moved from XX/XX/XXXX to XX/XX/XXXX. 

On XX/XX/2022, we requested an update on our loan application and were told it was in second level review. On XX/XX/2022, we followed up on the status of the loan. No substantial update was provided. The loan officer simply stated I will let everyone know when I hear back from underwriting. 

On XX/XX/2022, the title attorney emailed Citibank asking for an update and requested the Closing Disclosure be sent to the Buyers. No response from Citibank was provided. We sent an email to the Citibank team expressing our concern over their lack of communication and follow through. We asked that Citibank provide an update on the loan application and the Closing Disclosure as soon as possible. No response was provided. 

On XX/XX/2022, the Personal Processor, XXXX XXXX, emailed us asking for insurance information. This was previously provided on XX/XX/2022. We forwarded the original bind request email to XXXX. At XXXX XXXX, XXXX sent the mortgagee clause and loan number to our insurance agent. He also stated that insurance would be paid through escrow and requested an invoice to be used for payment at closing. Evidence of insurance was provided to Citibank at XXXX XXXX  the following day. 

The closing attorney followed up with the group asking for an update at XXXX XXXX. After not receiving any response from Citibank, the closing attorney sent an urgent message to the group explaining that we were going to lose our escrow deposit and that she had never seen such a lack of responsiveness in 21 years in this business. No response from Citibank was ever provided. 

On XX/XX/2022, the closing attorney emailed the group threatening litigation and stating Citibank could be liable if the Buyers lost their escrow deposit. We contacted XXXX again, who still had no update or information regarding the loan application status. He just kept stammering, it's held up with risk. We demanded to speak to XXXX manager and received a call from XXXX XXXX at XXXX XXXX. The call lasted 13 minutes. XXXX explained in less than 5 minutes what XXXX could not in 2+ weeks. Citibank wanted a letter from my Spouses HR department with specific information regarding his position. We immediately contacted his employer, and within 1 hour, a letter was emailed to Citibank directly from the HR department with all requested information included. 

On XX/XX/2022 we followed up with XXXX via email at XXXX XXXX. 

On Friday XX/XX/2022 at XXXX XXXX, XXXX called to inform us that Citibank had officially denied our loan application. 

In summary, Citibank strung our family along for 46 days with full knowledge of the contractual obligations of our home purchase. They failed to provide either approval or denial in a timely manner and because of their gross negligence, we were forced into a no-win situation. The complete disregard and unprofessionalism of Citibanks employees put us at risk of losing our {$20000.00} escrow deposit and more importantly, the home we had searched and been prequalified for. We had to pay the seller {$7000.00} of our own money to prevent him from taking our entire escrow deposit and walking away from the deal. 

Additionally, we were given no time to shop for an alternative lender because Citibank notified us at close of business on Friday night that our application was denied. We had to find a lender over the weekend in an effort to salvage what was left of the transaction and not lose the home. Interest rates had increased substantially since our rate lock with Citibank and although we had no problem securing a loan with another lender ( literally it took 3 hours for desktop approval and just two more hours for full underwriter approval ), the rate we received was 6.375 % which equates to over {$140000.00} more in interest over the life of our 30-year loan term. 

This situation is not something I would have ever known to be weary of with a banking institution like Citibank. We were left completely in the dark by Citibank and because of their unwillingness to communicate what was happening internally, they put us in a terrible situation that will cost my family nearly {$150000.00}. I'm a XXXX  XXXX, I have a XXXX XXXX  old son and this is the home we chose for him to grow up in. Citibank put this at risk and I can not state enough how shocked and saddened we our by how we were treated by this bank.

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