Consumer complaint received 2025-05-31 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: FULTON FINANCIAL CORPORATION
State: NJ

Complaint narrative:
Fulton Bank has been a nightmare to deal with from the very beginning of our construction-to-permanent loan process. While we were referred to them through our builder and incentivized to use them, the experience has been marked by miscommunication, misinformation, and deception at nearly every stage of the loan process. 

Main Issue : Escrow Waiver Deception Our most pressing issue, and the one we are seeking to have rectified, is Fultons bait-and-switch regarding escrow. We signed an Escrow Waiver and our Closing Disclosure clearly indicated NO escrow for homeowners insurance and property taxes. Based on this, we financially planned to handle these payments ourselves. 

However, at the time of converting to the permanent mortgage, Fulton disregarded this agreement, stating that escrow would now be required despite the documents we signed stating otherwise. I asked multiple times where in the closing documentation this change was disclosed or explained and no one at Fulton was able to point to any language stating the Escrow Waiver was temporary or conditional. The only response we received was a vague citation of internal policy which we were never made aware of during the signing process. 

As a result of this abrupt and unexplained change, our monthly mortgage payment increased by over {$800.00}. This goes directly against the terms we agreed to and signed for at closing and feels not only deceptive but predatory. We signed an Escrow Waiver in good faith ; to rescind it without warning, explanation, or documentation is unacceptable. 

While we ultimately signed the mortgage modification documents, we did so under pressure and without fully understanding the implicationsespecially regarding the reversal of our signed Escrow Waiver. We were repeatedly told we had to schedule and attend an appointment to finalize the loan conversion despite raising multiple concerns and requesting clarification about escrow. No written explanation was provided before we were expected to sign, and we were left with no alternative option to retain the original terms. 

Unfortunately, this is not an isolated incident. Our full experience with Fulton Bank has included multiple breakdowns in communication and outright incorrect information : Lot Loan Issue : While purchasing our lot, a Fulton employee called us at the end of the business day to claimincorrectlythat our loan could not proceed because our newly subdivided lot hadnt yet been assessed for taxes. This caused enormous stress and almost jeopardized our purchase, and we were given no apology when it was proven false by our lawyer and builder. 
Appraisal Gap/ False Promises : When applying for the construction loan, we were promised we could provide our own comps for the appraiser, which never happened. No one contacted us, and the appraisal came in lowforcing us to cover a {$70000.00} appraisal gap with little notice. Fulton had also promised our lot down payment would count as equity, but that turned out to be false as well. 
Lack of Transparency : Each time we encountered an issue, Fulton employees were dismissive, unresponsive, or vague. Despite multiple attempts to get clear answers, we were met with indifference and left to figure things out ourselves. Their internal policies are being used retroactively and opaquely, without any upfront disclosure to us as borrowers. 

Fulton Bank 's repeated misinformation, lack of transparency, and disorganization robbed us of the joy and excitement of building and moving into our first home. This has been an incredibly stressful, costly, and disheartening experience. We trusted this bank with the biggest financial decision of our lives, and they failed us at every step.

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