Consumer complaint received 2023-05-16 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WAFD BANK
State: ID

Complaint narrative:
XX/XX/2023 : I was referred to XXXX XXXX at WaFD ( Washington Federal Bank ), XXXX XXXX XXXX XXXX, XXXX, ID XXXX. XXXX XXXX, XXXX XXXX. XXXX : XXXX. 

During the initial call we discussed the HELOC product, the costs involved, and financial guidelines. If the loan stayed under $ XXXX, I was led to believe fees would be limited to {$700.00}, but that was not true when the disclosure documents came with additional fees and closing costs. The fees are not uncommon in the industry, but not disclosed in advance. Also discussed is that I would need to be added to the title with the new loan. This was not supposed to be a problem and could be handled at closing with a release of interest to me in the associated real estate. Based on the preliminary review the product seemed like a good match and application was made jointly ( XXXX & XXXX ) for the loan. 

By XX/XX/2023, the fiasco of this application was in full swing. WaFD required production of documents purported to be obtained by their digital tools. The error or issue has never been addressed by WaFD. This deficiency was pointed out to XXXX XXXX on at least three different occasions. Additionally WaFD demanded documents that do not exist, specifically a letter from the Pension payor for benefits, but refused to accept multiple years of 1099-Rs as adequate substantiation for the pension payments along with bank statements showing the continuing payments. Further WaFD demanded explanations for credit pulls within the time 14 day time window to shop for mortgages. Explanations were provided multiple times in writing but never acknowledged. 

Between XX/XX/XXXX and XX/XX/2023 the deficiencies of WaFD applications system were pointed out to XXXX XXXX not less than XXXX separate times. At no point were the errors, issues or items addressed, but rather they were met with repetitive requests for the same information ad nauseum. 

On XX/XX/2023 WaFD ultimately denied the loan due to the inability to add me to the title at closing - an issue I was assured prior to application could be addressed suitably at closing. XXXX XXXX also provided the following logic : " Currently your home ( see snip below ) has an interest rate of XXXX and if you would have had the heloc at XXXX combined would have been 12.25 % with the heloc being interest only unless you made higher payments. 
If you took the whole XXXX your payment would have been XXXX per month of sheer interest which means that monthly the combined payment would have been XXXX per month Instead if you did a cash out refi then we can add XXXX and use all of his income and give you XXXX cash into a checking or savings account to use at any time the interest rate would only be XXXX for it all roughly a loan of XXXX with an estimated payment of XXXX including tax, home owners XXXX and principal and interest for a total loan of XXXX excluding closing fees 30 year With us you would NEVER have to refi at title to lower the payment we do inhouse rate modifications as rates lower we have two programs one for only XXXX and the other for 1 % fee other banks charge up to 3 % we are way less. " Email Except XXXX XXXX XX/XX/2023. 

The logic here is fallacy. Preservation of the underlying loan and addition of the HELOC created a weighted average interest weight, not a summation interest rate. In this case the interest rates would be on near equal balances or slanted slightly to the higher rate. In this case the actual interest rate on then entire home debt would be approximately 6.125 % XXXX6.25 %. Yet, XXXX XXXX after denial on a loan for issues she personally assured would not be a problem pitches the wonders of Cash Re-Fi for WaFD at 6.5 %. Not only is this higher interest rate product, but a product that comes with a lot more fees and closing costs. 

The appearance here is that the HELOC was used as bait to get a loan application and all the personal financial documents in an effort to switch it out to a Cash Our Re-Fi at a substantially higher cost and a higher interest rate on the total loan package. This does not serve the consumer.

Company response to consumer: Closed with explanation