Consumer complaint received 2024-09-11 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: BMO BANK NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Main issue is the after year one rate changed from what told and in initial application prefilled to closing ( although there were several other issues with the bank ). The banker we worked with admitted fault and has tried to get it fixed by going to his regional managers and customer advocacy department, all who have told him there is nothing that can be done. 

We had our initial call with our banker and on XX/XX/XXXX we followed up with an email confirming the first year rate but also included the information about the after year one rate. Email attached but said Banker- can you also provide again first year fixed rate? We know after year one its prime plus 2.75 %. His response 7.24 % fixed for 12 months ( which this turned out to be a variable rate and the banker was mistaken on this as well ). We had several conversations about the rate. When we received the initial application the rate amount was prefilled and said 11.50 %. I called immediately not understanding and he assured me that if we opened a BMO account the rate would reduce 0.25 % which matched the prime plus 2.75 %. 

After going through underwriting and providing all required information, we received closing documents on XX/XX/XXXX less than 48 hours prior to our closing. It noted any changes needed to be made before 48 hours and for us to speak to out banker. I noticed the rate for after year one was 11.75 % now and the first year rate was variable and for 7 months. He again assured us the first year rate was for one year not 7 months and apologized because it was a variable rate not a fixed rate. As for the 11.75 % he admitted his mistake and looked into what could be done. He was essentially told nothing could be done before closing but he would continue to work on it which he has continued to do.

Other mistakes or issues were : Processor never responded to our questions about financial information we needed to provide and appropriate timing of that They required us as a condo to get extra insurance even though our master policy covers walls in, plus sheet rock plus builder grade fixtures. Both our personal and master condo policy reps confirmed this was not correct but we were told by the bank we had no choice. We were told we were also getting a 0 % transfer and purchase card which turned out to be only on transfers. And the answer I was given when I questioned it was that if we pay it off each month we dont pay interest. Lastly, we were told that the advance money we requested would be deposited when received email about closing on XX/XX/XXXX. XXXX assured us it would go into account. Then told Friday XX/XX/XXXX that it was being mailed but we were not home. Then told would be deposited and then the check showed up on Tuesday XX/XX/XXXX with no signature required.

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 non-monetary relief