TD Bank US Holding Company Mortgage Complaint

TD Bank US Holding Company Mortgage department,

Home equity loan or line of credit Settlement process and costs District of Columbia

My wife and I applied for a $270000.00 home equity line of credit from TD Bank to be secured by our residence, which had appreciated in value since our previous financing. In order to qualify for the HELOC, TD Bank required us to refinance with TD Bank the existing, 30-year fixed rate mortgage we had with a different lender. We agreed to refinance our home as a condition to the HELOC. We simultaneously closed the refinance of the mortgage and the HELOC on - -, 2016. At the simultaneous closing of the mortgage and the HELOC, TD Bank did not collect any closing costs from us. Pursuant to the Closing Disclosure prepared by TD Bank and executed by my wife and me, TD Bank gave us " Lender Credits '' for closing costs equal to $9700.00. This more than offset the $9500.00 in closing costs listed elsewhere on the Closing Disclosure. As a result, the Closing Disclosure clearly stated that the aggregate net closing costs to us were - $150.00.


Bank drew the $9700.00 from our HELOC account, the HELOC had already been drawn down to $0.00. As a result of TD Bank 's draw, our HELOC was overdrawn by $9700.00. We only learned that TD Bank drew additional funds from our HELOC account once we received notice from TD Bank that our HELOC was overdrawn by $9700.00. Only after we spoke to a representative at TD Bank did we learn that TD Bank intended to apply the overdrawn amount to " closing costs ''. The draw by TD Bank expressly contradicts the Closing Disclosure that it prepared and required us to sign at closing. Further, TD Bank made no effort to collect from us, or draw from our HELOC, any closing costs at closing. Since we first received notice of the overdraw, TD Bank has threatened us with collection on numerous occasions. We have discussed this issue with various representatives of the bank but have not received a satisfactory resolution. TD Bank representatives attempt to support their position by pointing to the Closing Disclosure. This is despite the fact that the Closing Disclosure clearly states that we were to receive a credit for closing costs from TD Bank at closing. We are deeply concerned by TD Bank 's actions and the threat to both our property and our credit rating.