Big mess with TD Bank Refinancing

[zoonil]

New Jersey
I have a problem with TD Bank with reference to my two applications for refinancing my mortgage. This pertains to certain deficiencies and oversights which TD Bank have admitted in following their own policies, and selective application of the rules.


1) I applied with TD bank for a FHA home refinance on May 2009 with a rate lock of 4.50%. The value of the house was stated at $575,000. However, the official valuation came in much lower at $500,000. I sincerely felt that was an incorrect valuation. The appraiser who came was very unprofessional and spent less than 5 minutes in the property. I requested TD Bank, to get a second appraisal performed at my expense. However, TD Bank informed me that it was not their policy to request for second appraisals, even if it is at the customer's expense.

I send a comparable property which was sold a month ago to TD bank and again insisted that they order a second appraisal (at my expense), but that request was denied. My next door neighbor's house was sold a month ago for $780,000 (or $280,000 more than the appraiser's valuation of my house). That property is identical to mine except for a few changes (3.5 bathrooms instead of 3 bathrooms in mine, 700sq ft of extra living space and new construction while my house while not a nwe construction, has brand new roof, windows and siding).

Anyway, TD Bank did not honor my request for a second appraisal stating that is their policy not to order a second appraisal for any reason. Instead the offered me a counter-offer, which was to bring about $36,000 to the closing table, since the appraisal value came short. That was the only condition of the counter-offer. Again, my request for a second independent appraisal was denied. I declined the counter-offer and the deal was dead, although I had to pay $400 for the disputed appraisal.



2) I applied for a second time on August, 2009 for a FHA home refinance with TD bank. I was informed that a new appraisal would be ordered since this was a new application. The new appraisal was done by another independent appraiser and they valued the house at $570,000. This more accurately reflects the value of the house. There was a time lag of a little over a month between the two appraisals, and by any reasonable means, there cannot be a $70,000 difference. This further strengthens my argument that the first appraisal was seriously flawed. The Loan processor Ms. Leslie Hester, stated that there was an oversight on TD bank for not performing the second appraisal on my first application, and started making judgmental remarks on my house.

TD bank says that FHA loans needs two sets of appraisals, and since they already have one from my earlier application (the disputed $500,000 valuation), they will use that. They said that they will choose the lower of the two and again, have asked me to bring approximately $33,000 to the closing table. If I choose not to take the counter offer, I will be liable for a 0.5% rate lock penalty plus appraisal and credit report changes. That will be over $3,500 in penalties and fees.


TD Bank in order to approve my application had to look up my FICO/Credit Score on my Credit report maintained by the Credit Bureaus. They want me to provide them with an explanation why those inquires were made in the credit report. These inquiries were made by TD Bank, and they want me to explain why they were made?

I was never informed that two appraisals were needed at the time of either of the two applications. Also, if two sets of appraisals were indeed required, why was this requirement not followed during the first application, despite my request for them to order a second appraisal.

The rules are being selectively followed. The loan processor also stated that if the second appraisal value came in higher (which it did), TD Bank would dispute the first appraiser and ask them to re-assess their appraisal. Now, TD bank is saying that is not possible and what they informed me was a mistake.


I would like a restitution of the first application made with a rate lock of 4.5%. The other option is to withdraw from the application without any penalty or charges (and refund of the appraisal fee already paid), and request the removal of the inquiries made in my credit report.


I really appreciate if someone can help me.