I have two mortagage loans with this bank that were taken out for the sole purpose of purchasing my home 6 years ago. Both disclosures indicate that payments are to be made by or on no latter than the 15th of the month before the close of business in order to avoid 5% late fee of the unpaid balance.
Pretty standard disclosure whenever you get a mortgage right? NOPE...the 1st trust and the 2nd trust apparently are treated entirely different because while the lst trust is considered a mortgage loan, the 2nd trust is considered a "retail loan". The retail loan as such is exempt from the 15 day rule if it happens to fall on a Saturday, because BB&T does not consider a Saturday to be regular banking days. That means that any payments made on a Saturday are not credited to the account until the next business banking day at midnight (which would be Monday). Thereby they are charging late fees if you make a payment on the 2nd trust on the 15th and it happens to fall on a Saturday. While the 1st trust payment is credited the day you actually make the payment regardless of the date and day of the week.
How can they do this on a mortgage loan? And where in the disclosures does it say this. I combed the entire closing package for the document that talks about the "Business Banking Day" that falls on a Saturday and found absolutely nothing indicating this "loophole" they have for their "Retail Loans".
What is a retail loan anyway? Given I applied for a mortgage. All I get from BB&T is that this is a retail loan and it's handled differently, yet no one seems to be able to explain what exactly that means. It is a law to have all mortgage disclosures include their penalty conditions on all loan documents, yet BB&T fails to do this on their retail loans. Makes one wonder if my other payment on the first trust isn't being charged a late fee as well without my knowledge since all I get with that loan is a coupon book with the same payment for 12 months. The 2nd trust loan comes with a monthly statement and payment coupon so you can see if you've received a late payment.
Seems to be that this special "rule" BB&T has within their loan department are in total conflict with one another. I wonder how many other unsuspecting borrowers are being bilked monthly for fees that are being charged on their mortgage loans illegally? Bere in mind this is a mortgage loan, it was taken out as such, yet it is treated as if it were a personal loan? After closer digging, I found out that indeed I was given a personal loan for this 2nd trust which is not what I thought I applied for initially, nor did I want one. had I known it was going to be a personal loan with the house being used as collateral I would have never taken it out and would have just taken one loan w/PMI and. To make matters worse, I can't refinance out of the dam thing! I was told by others that because the 2nd trust loan indicates that I received "CASH" in advance of my lst trust closing date it is not considered a purchase money 2nd loan but instead a personal loan. How can this be? I never got a dime from this loan it was all signed the same date I went to closing. However what I did notice was that the 2nd trust docs were backdated to 15 days prior to my settlement?
ILLEGAL, ILLEGAL, ILLEGAL. and I'll say it again this bank is operating as a predatory lender for sure. I"m stuck now with this 6.75% personal loan I can't get out of by rolling in both loans and lowering my rate based on the current market and the present amount owed. So I'm basically screwed. Anyone who does business with this bank needs to run not walk away.