Complaint Review: Union Bank

The loan application process with Union Bank for a mortgage loan was gruesome. I furnished proof after proof and back-up after back-up of my financial condition. It was beyond necessary, beyond sensible, forensic underwriting. And it dragged out to the very end, just a couple more things, again and again. But that's probably every bank in this current climate where the pendulum has swung from no underwriting to excessive underwriting. So that's not why I'm filing this ripoff report.

The gist of the ripoff is that I received sometime in mid January a "Rate Lock Agreement" from Union Bank dated January 2, 2014, which locked in my 30 year mortgage rate at 4.5% until February 8, 2014, with the caveat that "I understand that this rate lock agreement is subject to change if there are material changes in my application, such as, but not limited to changes in the loan amount, program type, loan to value or other changed circumstances." There were no material changes in my application after the Rate Lock Agreement dated January 2, 2014, and yet, at 5:18 PM on January 28, just two business days before the closing, which occurred on January 31, 2014 (and which was the last day I had to purchase the subject property under the final extension date for closing under the Purchase Agreement), I received an email from Union Bank which shockingly informed me for the first time that the rate on the loan was to be 4.625%.

I immediately responded that they had got the rate wrong, and then the emails began to flow, and I was ultimately forced at the proverbial 11th hour to accept the loan at the increased rate. I really had no choice. As I said at a conference room meeting on January 29 about this matter, Union Bank had me by the short hairs.

What does a Rate Lock Agreement mean? I took it to mean what it said, that Union Bank could not change my rate until the agreement expired unless there were material changes in my application.

The January 2, 2014 Rate Lock Agreement was totally consistent with everything that had gone before, and was exactly what I expected. In other words, it was not a surprise under-pricing which I am attempted to get the bank to honor.  

We had a deal as of January 2, 2014: 4.5% with 25% down. Unless there were some material change in my application. And there never was.

Union Bank broke its Rate Lock Agreement with me. I wrote a complaint to them after the closing. They did not show me the courtesy to understand accurately what happened, and denied my complaint