Consumer complaint received 2026-05-26 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Delays with the closing process
Company: CITIZENS FINANCIAL GROUP, INC.
State: MA

Complaint narrative:
I am a XXXX time homebuyer who purchased an affordable housing unit in XXXX, Massachusetts. I am submitting this complaint regarding my experience with Citizens Bank and the financial hardship caused during my mortgage application process. I initially began my mortgage application with Citizens Bank and paid a {$610.00} appraisal fee in good faith based on the information provided by the loan officer, XXXX. During the application process, I was advised that I was not eligible for the XXXX XXXX program and that the only available loan option included PMI, resulting in a significantly higher monthly payment. I confirmed multiple times whether any other loan programs were available and relied on this information when proceeding. Later, after restarting the mortgage process with another lender, I learned that I was in fact eligible for the XXXX program and that Citizens Bank does not participate in that specific program. This important information was not clearly communicated to me during my original application process. Due to the earlier guidance I received, I had to restart my mortgage process with another lender. As part of restarting the process, I was required to pay for an additional appraisal fee with another bank. This resulted in multiple appraisal expenses, delays, stress, and additional financial burden. I later learned that the XXXX loan was not approved due to property-related environmental or program requirements, not because of my personal eligibility. Because of this, I eventually had to restart the mortgage process again with Citizens Bank through a different lender. This created additional delays, financial hardship, and emotional stress during an already difficult affordable housing transaction. Most importantly, the original {$610.00} appraisal fee from the earlier Citizens Bank application was never refunded to me and was not credited toward my later closing costs. These were XXXX separate mortgage applications and should be evaluated separately. I reviewed my final Closing Disclosure and confirmed that the original appraisal fee was listed as paid outside of closing and was not reimbursed through closing credits, lender credits, or affordable housing assistance. I also provided documentation from my current lender confirming that the earlier appraisal fee could not be included in my closing cost assistance because it was associated with a previous loan application. As a result, this expense had to be paid fully out-of-pocket. Additionally, when I originally paid the appraisal fee, I was informed that the fee would be credited back at closing. Based on that explanation, I reasonably understood that the payment would be reimbursed if the original loan did not proceed. On XX/XX/year>, Citizens Bank informed me that the appraisal refund had been approved. On XX/XX/year>, I was again informed by phone and email that the refund had been processed and credited back to my original form of payment. However, I never received the refund to my debit card. After several follow-ups, Citizens Bank later changed its explanation and stated that the appraisal fee would not be refunded because the appraisal was later used in a subsequent Citizens Bank loan application. This directly contradicts the earlier confirmation that the refund had already been approved and processed. Despite multiple attempts to resolve this matter directly with Citizens Bank, including escalation through the Office of the Customer and prior CFPB complaint communications, no resolution has been provided. This situation involved inconsistent information, poor customer service, multiple appraisal fees, unnecessary delays, and financial hardship during my first-time affordable housing purchase. I respectfully request that Citizens Bank reconsider issuing the {$610.00} appraisal refund as a goodwill resolution based on the misinformation, conflicting refund communication, and financial harm caused throughout this process. I need this refund after everything I experienced throughout this process, including the delays, repeated applications, additional appraisal costs, and financial hardship caused during my home purchase. If this matter remains unresolved, I will continue pursuing all available remedies and legal rights available to me. Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation