Consumer complaint received 2023-06-30 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: COLUMBIA BANKING SYSTEM, INC.
State: WA

Complaint narrative:
On XX/XX/XXXX I closed on a {$250000.00} HELOC with Umpqua Bank. Never was i told the repayment terms during the loan process. While i did sign closing documents on this date the signor ( also employed by Umpua ) never once outlined our repayment terms in the loan packet. Nor did we sign the page showing the repayment terms on the loan paperwork. To my knowledge this page was NEVER explained to us by XXXX XXXX ( our loan officer ) or the XXXX XXXX XXXX of the XXXX XXXX, XXXX  Umpqua branch. 

Verbally i was told by our XXXX XXXX, Washington Loan Officer employed at Umpqua that there was a promotional HELOC being offered if we qualify. It was a 30 year entire term, but the first 10 years were interest only. The promo offered for the first 12 months a fixed rate of 2.99 % and after the 1st year the amount we drew on the balance would covert to a fixed rate of 3.79 % - being interest only for the remainder of the 9 years and repayment would begin on year XXXX. 

Fast forward to XX/XX/XXXX- i went into the XXXX XXXX branch to make my payment as scheduled. The teller quoted me a payment of {$1700.00} due- this was XXXX what my monthly payment had been in months past. After calling into the Umpqua corpertate mortgage line on the phone for 2 days and getting absolutely no help I was able to finally get ahold of the branch manager of the XXXX XXXX XXXX XXXX XXXX XXXX who explained in the loan paperwork I signed on XX/XX/XXXX outlined i had to exercise a " smart lock '' option - but had not done so. And such, the HELOC rate went up to the current index rate + margin - variable for the remainder of the term. 

After sending XXXX the email chain from XXXX XXXX showing there was never a loan disclosure sent out prior to closing or even an email outlining the terms and repayment of the loan Umpqua over email she did call me with a " solution ''. Due to the errors made by the loan officers they would re-extend the option to exercise my " smart lock '' on the HELOC. But, by doing so the term repayment term was NOT 30 years - it was 10 years or 120 months with a fixed rate of 3.79 %. Or i could continue to pay interest only for 120 months ( variable rate ) and then repay over 120 months. 

HOW was Umpqua allowing these HELOC 's to close without proper documentation and acknowledgment from consumers showing the payment, terms, and WHAT the projected payment would reflect if we drew off the approved XXXX XXXX  balance and how the debt would be repaid. I did not initial the page of the loan documents outlining the repayment terms- and no where in the entire document does it outline what my payments would reflect once we closed with the promotional pricing period and then again with the repayment period. Upon requesting my loan documents on page 4 & 5 there is a 1/2 page description with ( in my opinion ) a vague and confusing outline of the rate, terms, and repayment but this page was NEVER explained to me at any point in the process. 

I am now faced with a $ 2500 monthly debt repayment to Umpqua on the HELOC and can not afford this payment. My concern again, HOW did Umpqua qualify me on this payment? There is no way my debt to income ratios would have supported a XXXX lien mortgage at {$2400.00} and a HELOC repayment of {$2500.00}. My entire mortgage is now over XXXX XXXX monthly and my wages even back in XXXX would have not supported the approval of the installment debt. 

I feel absolutely taken advantage of, and am faced with the harsh reality due to these errors we may have to sell our home to repay the debt. My husband and I do not make the money monthly that is necessary to repay the debt from the terms that were written and NOT properly disclosed as 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 explanation