KeyBank NA Mortgage Complaint

KeyBank NA Mortgage department,

Conventional fixed mortgage Settlement process and costs California

I obtained a 10-year conventional, fixed mortgage from my local bank in 2006. This loan was sold twice. The current lender is KeyBank in - -, KS, who purchased my loan from - - 6 months ago. The balloon payment ( approx. $210000.00 ) is due in 10 days. A payoff statement was requested from - - at KeyBank, who added a $850.00 " Admin Fee '' to the principal. I have no choice but to pay this unexpected $850.00 fee, if KeyBank is to accept the balloon payment and close the account. I was never told about this fee until today. I reviewed my original loan documents and nowhere does it say that I will be charged any amount, let alone a $850.00 fee, to pay off the mortgage. I have had a number of mortgages, both residential and commercial, and have never had to pay such a fee. The escrow manager says this fee is both improper and very excessive. In fact, she has never seen anything like it in her years in business.


-. - - also charges a $100.00 fee to revise the payoff statement ( such as changing the date ). The escrow manager says this kind of fee is very seldom assessed by banks, and would typically cost no more than $15.00. KeyBank is apparently trying to squeeze exorbitant, last-minute fees that were never due, simply because I have no choice, no time to dispute them and no recourse ( other than CFPB ). I believe that is behavior is known as extortion.