Consumer complaint received 2022-09-28 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: CITIZENS FINANCIAL GROUP, INC.
State: NY

Complaint narrative:
Citizens Bank " The bank '' hereafter, exercises illegal lending practices. The bank denied twice a home equity line of credit application. The application numbers were : 1 ) XXXX 2 ) XXXX. Their denial was based on extreme negligence, incompetence, erroneous numbers and calculations. Despite me showing them the wrong numbers, they intentionally ignored it to cover up their illegal lending practices. 

The bank was intentionally negligent in taking due diligence in checking the numbers that they use for calculations and verifying that those numbers are accurate. The bank put individuals in critical positions to put the numbers that they use to perform calculations of Debt-to-income ratio and then use that to base their decisions on denying or approving the loan. 

My case is simple they used wrong numbers, they did not use appropriate methods of verifying the numbers, got the wrong calculations and denied a loan twice that should have been approved. This is an extreme negligence, because I have the evidence of the wrong numbers they used, the evidence of their wrong verification methods, and the evidence of their denial of the loan. Those negligent practices should be investigated because they could have denied not only my loan application but also other loans to customers that should have been approved and vice versa. 
In Finance correct numbers are the core of the banking system, and wrong numbers can bring down the whole system. So, that is not a small thing. Finally, I believe they intentionally denied my application for reasons that can be questionable XXXX XXXX. I applied for home equity line of credit in XX/XX/2022. I got conditionally approved. 
The home appraisal came back of XXXX. The underwriter took XXXX months to process my application and kept asking for irrelevant documentation like my wife rental property income and my wife is not listed on the collateral house nor was she a co-applicant. In addition, the underwriter put the wrong monthly tax numbers on my file and rejected the file XXXX due to high Debt to income ratio ( DTI ). 

XXXX XXXX. After numerous attempts with my loan officer XXXX and my Loan processor XXXX to ask them to tell me what my DTI ( Debt to Income Ratio ) is, they refused to answer. And in some discussion the loan officers did not know how to calculate the Debt-to-income ratio. 

XXXX XXXX. I called the hotline for home equity, and they were able to tell me what the Debt- to-income ratio was, which illuminated to me that both the loan officer and the processer were willfully concealing the information. The reported Debt to income ratio that was reported on file after the Debt Payoff from the loan proceeds was 90 %. I was shocked because that was obviously wrong! and I emailed both the loan officers and processors trying to understand how is that possible and they wont tell. 

XXXX XXXX. I called the hotline for home equity and the representative told me a shocking high monthly property tax number that was reported on my file which I instantly knew that was one of the reasons that my DTI ratio was reported wrongfully as high a XXXX %. It is worth noting that the home equity hotline tried to conceal what are the numbers reported on my file that were used to calculate the DTI. And at first, they did not want to tell me those numbers, until one of them told me the monthly taxes reported on my file ( and that is when I knew that those numbers were wrong ), but he would not tell me other numbers. A culture of deception lies and incompetence. 

XXXX XXXX. After I knew of the wrong numbers, I requested to escalate the matter to the managers and finally after all the time that have been wasted, they adjusted the numbers and showed the DTI was 59 % which was still above 55 % threshold. The reason it was still above 55 % because of what they use as the qualifying payment and rejected the loan for insufficient income to bring down the DTI to the 55 % Level. 

XXXX XXXX. I emailed the Vice President of Operations XXXX XXXX my new employment contract that shows the additional income that they can use for calculating the DTI, because If they did, then the DTI will be below 55 % threshold even with the qualifying payment they mentioned and then the loan will get approved. I emailed him that on XXXX and I called and left messages. No one responded and they completely ignored my requested. 

XXXX XXXX. I moved on and applied again to the same bank in the hopes of getting a better loan officer and a better loan processor and we move on and get the loan approved. 

XXXX XXXX. I received a letter from the bank that my HELOC loan ( the first application loan XXXX ) was denied due to insufficient income to bring down the DTI to be 55 % or below. I was shocked that they sent out that letter because I had sent ( XXXX ) the VP of operations and another loan processor the information, showing the extra income. That all provided evidence to culture of negligence and incompetence. 

XXXX XXXX. Initially the second loan application was declined due to high DTI ratio. The online appraisal came back XXXX. I emailed and explained to the loan officer XXXX to double check with the underwriter that he has put the new income XXXX receiving, the correct tax numbers, the correct insurance numbers and the correct payoff numbers. 

XXXX XXXX. They did then conditionally approve after back and forth and the loan officer said, and I quote I did it. They approved XXXX loan conditioned that they do another interior appraisal. 

XXXX XXXX. After XXXX weeks of waiting on the appraisal to be finished. I emailed the loan officer XXXX and she said that the appraisal came back at XXXX lower than the XXXX that they already had, so the loan is denied because they can only do XXXX and that Is not enough to do the payoff to bring XXXX below 55 %. 

XXXX XXXX. After another back and forth explaining to the loan officer that the XXXX loan will work and my DTI ratio will be below 55 % threshold, and after I gave her my worksheet to see how it is done and requested that she give that worksheet to the underwriter to check his numbers. After all that she came back and said that the qualifying payment should be {$2000.00} and that is why the loan worksheet was not correct. 

XXXX XXXX. I explained to her that the {$2000.00} qualifying payment number was the wrong number because that qualifying payment she quoted is for a loan amount of XXXX not for the XXXX that I requested. I did not get any answer. The loan was denied due to insufficient equity to do the payoff to bring down the DTI below 55 %. 

XXXX XXXX. I asked both the loan officer and the processor XXXX to ask the underwriter to review carefully the worksheet I sent so he may see what the difference between my numbers and his. My idea was for him to see what errors he made so we can correct it and move one. 

XXXX XXXX. The Loan processor and after two hours later came back and said the underwriter already reviewed the files and the decision is final for denial of the loan. 

XXXX XXXX. I was completely shocked. I knew they were negligent and incompetence, but ignorance and stupidity were too high for me to fathom that at critical position like that the negligence is too high. So, I asked the loan officer and the processor to tell me what is the DTI ratio that was reported on my file. I did not get a response. The same culture of deception and concealment still pervasive. 

XXXX XXXX. I called the hotline for home equity, and they told me that my DTI was 78 % or 80 %. I was flabbergasted and shocked, so I asked what number the underwriter put on file for taxes and insurance, and I was shocked again, because he put the wrong numbers on my file and that is why my DTI was too high. 

XXXX XXXX. I emailed the loan officer XXXX and told her about the wrong taxes put on my file. She then emailed the underwriter, who then with his ignorance response that he verified the monthly taxes for property from realtor.com. What an ignorant fool. So, I emailed XXXX the original tax documents that shows the correct tax numbers. 

XXXX XXXX. The underwriter came back and said that the ratio now is 55.27 % and he put that the consolidated debt is XXXX which is above the XXXX loan that I can get and therefore the loan is denied. So, the underwriter negligence reported that my DTI was 78 % and the decision was final and then because of my investigative work he came back and said it is 55.27 %. That is obviously evidence of negligence. 

XXXX XXXX. I was shocked again because he put {$10000.00} number twice and used that to get the consolidate payoff amount, and that was how he was getting the wrong consolidated payoff of XXXX. But instead, if he put the correct numbers the consolidated payoff was XXXX. 


XXXX XXXX. I emailed the loan officer expanding yet again the errors of the underwriters The underwriter recognized his errors out of many and adjusted the consolidated payoffs to be XXXX and said the loan is still denied because the ratio is 55.27 % instead of 55 %. 

XXXX XXXX. 2022. I was by now convinced, that this was intentional illegal lending practices, because the underwriter should have known or reasonably know that he could increase the loan amount to XXXX because he should have updated the first mortgage equity balance, which will impact the loan amount that can be given out because at that time and with new first mortgage balance that loan that can be given out would be XXXX XXXX The underwriter if he was not negligent and incompetent would have added another payoff which I suggested one of two things either pay another with credit card of a balance of {$2200.00} which will reduce the monthly debt by {$65.00} and hence the DTI will be 54.85 % and we will still be with the XXXX loan. or pay different card with a balance of {$1100.00} which will reduce the monthly debt payment of {$25.00} and hence the DTI will drop to 55.06 %. 

XXXX XXXX. So, I asked for the manager. 

XXXX XXXX finally spoke to XXXX XXXX and he was asking to know what the discrepancy was. I was shocked that he did not know the case. Regardless I asked him to check with his loan officer XXXX. 

XXXX XXXX. After XXXX days he came back and said yes now the DTI is 55.27 % and it is rejected by the system, and he will ask for an exception. By this time, I figured out that these guys are completely ignorant, incompetent and negligent. So, I told him that we dont need an exception and explained to him that he can adjust the loan amount to XXXX and add another payoff and the DTI ratio will drop to below 55 %. I sent him the new updated first mortgage equity balance XXXX XXXX. He did not get back to me, I went to the branch, closed my checking account, asked to file a complaint and the branch officer XXXX filed an internal complaint. 

XXXX XXXX I received a call from XXXX XXXX XXXX works with the chairman office, and she offered me assurance that someone from underwriting will go over with me on how the DTI was calculated so we can see where the error is happened XXXX XXXX XXXX hours after the call with XXXX XXXX, XXXX XXXX Emailed and reseated the exact same thing that they reviewed and still denial and give the most bizarre explanation because he listed payoff that cant be possible under XXXX or XXXX Loan which proved once again the incompetence and the negligence of the Bank. It is as if we are talking to individuals who are not organized and don't know what the issue at hand and they is don't even read their own emails. 

XXXX XXXX i received a letter dated XXXX that says the loan of XXXX was denied, another bizarre letter that shows extreme negligence, incompetence and denying loans without doing the least of asking their loan officer of where things stand.

Company response to consumer: Closed with explanation