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Mortgage application rights?

We applied for a 15 year refi in late August.  We still have not closed.  The bank's representatives have been very slow to respond through this entire process - generally one to two weeks to get a call or email back.  They said we now need another appraisal since the first is too old (done in October).  That was the last straw and we checked with our current bank which is able to offer us a better rate and we will close by the end of the month.  We had initially checked with them but their offer wasn't as good (remember, this was nearly 6 months ago).  My question is this - has the first bank violated any of our rights?  I would like to file a consumer complaint with our Attorney General's office so future customers do not get treated like this.  Fwiw, we have excellent credit, 22% equity, and our debt-to-income ratios are fine.  There is no logical reason why it has taken this long.  
  • February 01 2012 - Columbus
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Answers (6)

Profile picture for shapiroamg
It should take no effort for you to fill out a form and detail what you have just told us here.  You probably will not have to provide anything more than your written word. Mention that for all the agita the bank gave you, all will be forgotten by refunding your fees back.

Once your state's licensing authority gets the complaint, they will send it to the bank for a response. Typically the responce to the agency will be "if we refund this borrower his/her fees, can we closed the complaint out?"  The licensing agency's goal is to get open compaints closed.
  • February 02 2012
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Profile picture for SLBoston
We paid both an application fee and appraisal fee back in August-September.  I've looked into it a bit more and I've read that banks are supposed to give you an approval or denial in writing within 30 days of application.  They did not do this, either.  It was a month and a half before we got a verbal approval and nearly 2 months before we got a letter in the mail.  I'm wondering if I can use that, combined with my extensive collection of emails showing us contacting them on a weekly basis for a status and them being largely unresponsive, to recoup these lost funds.  At this point, the payments we made are sunk cash and I'd do anything to not have to deal with this bank.  If this is how they treat new customers, imagine how they treat existing ones.  However, like I said before, I do think 6 months on a simple refi is absolutely absurd and want to address it to the appropriate authority.  I just want to have some sort of backup info before I do so.
  • February 02 2012
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Profile picture for shapiroamg
I think its worth putting a complaint in especially if you paid an application or appraisal fee up front. I would hope you could recover that money back then. 

Unfortunately there is a logic to this. Banks and lenders have been overwhelmed with business. Some have added staff to handle and others have not.
  • February 02 2012
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As long as all of your disclosures where delivered timely, poor customer service is not against the law.
  • February 01 2012
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Profile picture for GMerino
You many times the company is having appriasal issus and the loan officer your dealing with just does not have any answers.  Although unethical, loan officers need to be more sensitive to their clients needs.  I am so sorry to hear that this has happened to you.  Normally, a refinance should have a response back within 30 to 45 days. 
  • February 01 2012
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I do not think you have any legal protection here. But if you write a complaint to the BBB, many times the bank will try to make it right to avoid dropping their rating.   The good news is that rates are much lower today than they were in August, so maybe this is a blessing in disguise.

Good luck!
  • February 01 2012
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