Wells Fargo HELOC - APPROVED

I just had Wells Fargo approve my HELOC application under the same parameters as the Citibank line that was frozen back in April 2008. The Wells Fargo appraisal came in 4% below the appraisal Citibank based their HELOC on in February of 2007....Hardly what I would call "Substantual Decline in Value"

I worked with Sunny Kumar (858-457-6625 or email) who knows what he is doing and understands the shortcomings of the underwriters. He has been amazingly responsive and moved my application along at light speed.

Furthermore, anyone that feels they have incurred damages as a result of Citibank freezing their HELOC, I would encourage to contact attorney Brian A. Rishwain (310-770-2410 or Email)
I have sent a package to Citibank including my new appraisal in order to get Citi to drop the 3 year early termination fee....which is absurd!

Citibank Charges Termination Fee for Frozen HELOC

This is now UNTHINKABLE! Citibank froze my HELOC on April 16, 2008. They refuse to reinstate it. Wells Fargo is willing to extend me the same line if I close the Citibank HELOC. However, Citibank is holding me hostage unless I pay a termination fee of $1,700.

This is CRAZY...does anyone have this problem...what have you done about it?

Another Blog Discussing Questionable Practices of Citibank HELOC

Here is another blog where you can express your disgust with Citibank HELOC.

IMPORTANT - Your Home Equity Line of Credit Has Been Reduced

On April 16, 2008 Citibank send out a notice entitled

IMPORTANT INFORMATION ABOUT HOME EQUITY LINE OF CREDIT
REDUCTION OF YOUR LINE OF CREDIT

The letter starts out with the first lie, "Citibank, N.A. is committed to each of its mortgage customers and to helping each of our homeowners with their financing needs."

Citibank froze the LOC of all customers based on and arbitrary computer model that showed their home had dropped below some value which they would not share with me.

HERE IS THE RUB: If you want them to reconsider the freeze on your account, and POSSIBLY have them reinstate your LOC, you have to hire their exclusive appraiser (LSI) at your cost.

When you call LSI (866-612-9276), you will learn that appraisals are provided on the following schedule:

• Below $500,000 => $350
• up to $1,500,000 => $550
• $1.5M to $3M => $750
• Above that you will be quotes a price

LSI will only schedule an appraisal after you pre-pay via credit card over the phone.

Now I can only imagine that Citibank gets a handsome kickback from LSI in exchange for being the exclusive appraiser....HOW DO YOU SPELL "SCAM"?

SO...Let's say you pay for this SCAM appraisal....Citibank underwriting will not even tell you what Loan to value (LTV) ratio they will give you. For example, if your appraisal comes back at $2M, you have no idea if they will give you up to $1.3M (or 65% LTV) or $1.4M (70% LTV). It is a complete crap shoot at the whim of some bean counter that couldn't figure out how to get it right the first time.

I am so completely disgusted with Citibank that without any regard for their "customers" decides to freeze accounts and potentially screw up the credit of tens of thousands of families. Unlike so many others, I am lucky I didn't bounce any checks or that I am not in the middle of a construction project.