RBS Citizens Mortgage Complaint

RBS Citizens Mortgage department,

Home equity loan or line of credit Credit decision / Underwriting Ohio

I am the - - for the - of - -. A resident, - -, came to see me regarding an issue he is having refinancing a home equity line he opened last year with Charter One/Citizens Bank. At the time of opening the line, the property - - owns at - - - in - - had no mortgage. - - obtained a home equity line for $75000.00 based upon Citizens ' appraisal of his home which came in at $94000.00. This year, - - attempted to refinance this adjustable rate loan into a fixed rate mortgage, but was denied by - based on their appraised value of $44000.00. We have opened a separate complaint against - based on this appraisal, which we feel is low for the condition of the property, however, another concern has arisen during our analysis of comparable sales. It appears that the Citizens appraisal was over-inflated and not supported by area comps. This led to - - being granted a loan that he can not refinance into a fixed rate mortgage because he can not get an appraisal to justify it. One comp used in the Citizens appraisal was for a property outside of the city, and another was for a parcel with very different characteristics. A detailed analysis of our findings is attached.