SunTrust Banks, Inc. Mortgage Complaint

SunTrust Banks, Inc. Mortgage department,

Conventional fixed mortgage Settlement process and costs Virginia

I applied for a specialized mortgage product with SunTrust bank, with specified costs for borrowing, including discount points and a 30 year fixed interest rate. Days before closing, I was informed that my loan product was changed, but that the costs were the same, with no additional fees or change in interest rate, and that the original disclosure included all associated costs. I agreed to the change under the explicit terms of the original loan costs. The change in loan product turned out to be secondary to the processing and underwriting departments making an error in interpreting my qualifications for the original loan product. The night before closing, I discovered that an additional 0.5 % discount points had been added to the loan, and that $500.00 in lender credits had been removed from the closing costs, without any additional disclosure to me, either written or verbal. When I questioned the changes, I was given by the loan officer a choice of either accepting the additional costs, which amounted to $5000.00, or they could resubmit my loan, from scratch, as the original product, the processing of which may or may not have been completed by the expiration of my rate lock, which was 3 business days later, and that the current rate was approximately 1 % higher than my locked rate. I feel that the loan officer and the processing/underwriting departments, whether intentionally or unintentionally, defrauded me for over $5000.00, and put me in a position of either accepting the additional undisclosed fees, or risk a substantially higher interest cost over the lifetime of the loan.