Consumer complaint received 2017-09-13 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: KEYCORP
State: IN

Complaint narrative:
I had been receiving cold calls from Key Bank in XX/XX/XXXX-XX/XX/XXXX. I decided to answer and explain a situation I was trying to resolve. I currently have a mortgage, a Home equity line of credit, personal line of credit, and checking account. I had recently purchased a car and wanted to pay off my auto loan. I was told I could apply for a 100 % LTV HELOC to secure additional funds to pay off auto loan and pay off current HELOC. I provided a very detailed layout of my net worth, liabilities, assets, etc including screenshot of brokerage balances, checking account, and balance history of my brokerage account. I provide income tax information, paychecks, etc to be reviewed. My wife just started a new job and provided a signed contract including salary. I do n't hear anything until XX/XX/XXXX The local branch manager is asking me to obtain a paystub for my wife, even though I was told it was n't needed and the signed contract was fine. Another week goes by and receive an email on XX/XX/XXXX On that email, XXXX XXXX notified me that I was n't approved for the 100 % LTV loan but was approved for the same HELOC I already had, which is a80 % LTV loan. On top of them wanting me to replace a very young loan account with the exact samething, they wanted me to bring additional money to close?? The loan amount was for the exact amount of my current HELOC. I was told the low equity in my house was the final decision maker as to not extending the full amount. I asked if that was an immediate qualifier why was n't that explained at the beginning of the process as she was reviewing all my accounts in real time via their internal system. Also, if it was an immediate qualifier why was the additional information needed so late in the game if that was n't even an applicable factor? As mentioned, I have my original mortgage and other debt accounts already as an existing customer, they knew exactly how much my house was worth, and my account balance. I feel this is some sort of bait and switch tactic to churn their long term HELOC AR and new product KPIs. On top of that I find this approach very concerning from a consumer protection perspective. So to summarize, I waited almost two months to secure financing I was pitched and all but assured of receiving. Now I do n't have the financing which will now cause a financial and time hardship while I attempt to repeat the process with a different company and receive additional inquiries on my credit report which negatively impact it.
On top of this very specific issue I have had nothing but problems with Key Bank. my online banking and automatic transfers do n't show up until days later and are retro applied which cause accounting issues several times due to fact I thought my payments were being applied timely and would end up making duplicate payments. I also made a large payoff to my line of credit using a bank check, and had my funds held for 10 days without notification and without any minimum funds being made available per law.

Company response to consumer: Closed with explanation