Consumer complaint received 2025-06-23 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: TOWNEBANK
State: VA

Complaint narrative:
I recently closed a home loan with Towne Bank and there were multiple issues that occurred creating confusion and delays with our closing. Upon asking for clarifications on some of the issues with the loan officer, he was unable to provide the answers and so I am seeking assistance from the CFPB.

On the afternoon of Friday, XX/XX/XXXX, just days before our scheduled closing on Tuesday, XX/XX/XXXX our Loan officer, XXXX, informed us that the contractor tied to our rehab loan could not be used because the contractor is also my employer. This forced us, with extremely short notice, to find and secure a new contractor in only two business days. We had to get all necessary paperwork completed and obtain agreement from the new contractor to take on the job, all by Monday evening. 

Multiple promises were made in an attempt to hold the closing with the scheduled title company, but the lender did not send over the loan closing package in time for the title company to have us sign the documents. Because the title company was unable to accommodate for us to execute the documents before they closed for the day, our closing was pushed to well after business hours and the lender sent a mobile notary instead. The notary did not seem familiar with our documents and simply told us the name of each document as we signed it, without walking us through any of the content. As first-time homebuyers, this was confusing and frustrating. 

The notary did not provide us a copy of the closing package and we did not receive any of our paperwork until more than a week later around noon on Friday, XX/XX/XXXX. 

During the closing we also noticed that a page of the closing disclosure was missing and the amounts on the disclose did not match the amounts we were previously told. On Friday, XX/XX/XXXX, we received a reimbursement check from the title company, which we expected to reflect the leftover funds from our closing. However, the check only included our earnest money deposit. This was especially confusing because we had been shown estimated closing costs of around {$15000.00}, and we had several credits applied. Additionally, my parents had gifted us {$20000.00} a fact I clearly communicated throughout the loan process and I had explicitly requested that any leftover funds be returned to me, not applied toward the loan principal.

At this point, I felt like I was being taken advantage of. On Tuesday, XX/XX/XXXX, I emailed XXXX, the title company, and my realtor asking to schedule a meeting to review the final paperwork and breakdown of funds. We agreed to meet on Friday, XX/XX/XXXX. 

On Thursday, XX/XX/XXXX around XXXX XXXX XXXX informed us that over {$1700.00} should have been returned to us but had not been included on an addendum to our Closing Disclosure without our knowledge. This is deeply concerning that fees are being changed after closing. Additionally, our final closing costs were far higher than the original {$15000.00} we had expected. XXXX XXXX explanation was that borrowers dont always receive the full gift amount they claim, so he used a different number when preparing the original documents even though I was consistent that the gift amount was {$20000.00} amount from the beginning.

Following our meeting on XX/XX/XXXX, XXXX gave us a reimbursement check for the {$1700.00}. However, the check was issued from his personal bank account, not a business or title account. This feels extremely inappropriate and potentially unethical. I have not and will not cash this check, as I am deeply uncomfortable with how this was handled.

Additionally, during our meeting, we raised a question about approximately {$3000.00} related to our rehab loan. XXXX gave a vague explanation and said he wasnt sure what the funds were for. He spent about two hours claiming to reach out for clarification but never received a response, and I still have not gotten an answer.

As a first-time homebuyer, I understand there is a learning curve, but I also know when something feels wrong and this entire experience has felt deeply wrong. The combination of last-minute changes, undisclosed documentation, unexplained fees, and personal reimbursement raises major concerns. I am still unsure if we have been correctly or incorrectly charged and am requesting assistance in getting answers and feel a review/ investigation is needed.

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 monetary relief