Darla Yocum
Executive Response Specialist
Citi

RE: ESA Application 11405020936700

Dear Ms: Yocum:

While I appreciate your taking the time to respond to my July 10, 2014 email, it is impossible that you have "addressed my concerns with management and the applicable staff" based on the contents of your letter.

The entire application process has been fraught with errors and poor judgement on behalf of Citibank which continue through this letter.

The loan amount requested was NOT $1,000,000.  It was $300,000.  Citibank continues to confuse two separate applications for two separate properties.   

The $1,000,000 application was for my property at 534 West 42nd Street, Apt 8, New York, New York.  This is a 4 year old condominium which was just appraised by TD Bank at $2,200,000.  My application to Citibank was declined because Citibank does not do HELOC's for properties which are held in the name of an LLC.   This policy defies all logic.   Certainly your legal department understands guarantees and is capable of drafting these types of instruments. Virtually all attorneys and accountants in New York City are today advising their clients NOT to own real property personally and to use an LLC for ownership. 

The subject property is at 71 Tonjes Road, Callicoon, New York  NOT 534 West 42nd Street and the loan requested amount was $300,000.

I spoke to Kristina Lucas on July 28, 2014 regarding my email and issues with Citibank.  Her singular contribution to the conversation was that since I was not proceeding with the application, she could do nothing.

With respect to the bulleted items in your letter:

1. "The falling ceiling and rotting floor with holes"  refers to the porch, The falling ceiling refers to two boards that were pulled down to inspect the condition of the porch roof by a contractor;
2. The "peeling paint" on front porch and bilco door does not contain lead paint and no test was done or question asked as to whether they do;
3. There are no gazebos on the property.  There are two gazebo style roofs on the front porch.
4. The chimney was 99% completed at the time of appraisal and was completed on May 19, 2014.  No question was asked about the status of the job or the schedule for completion.

It would seem that there is no business force at Citibank in this department at all. If there were, they would not permit a lazy and incompetent appraisor and a fearful and misinformed underwriter from stopping a small HELOC.

Why?

I am a long term banking customer of Citibank since 1974. I currently have 6 accounts at Citibank under my name, jointly with others and in the name of businesses.  All are in good standing.

I inititally purchased this property with a loan from Citibank in 1992. The loan was paid in full and I never missed a payment.  

I later obtained a ten year HELOC from Citibank on this property and it has been paid in full and has terminated.

There are NO outstanding loans or existing HELOC's on any of my properties.  I am in the real estate and textile businesses for 35 years.

My net worth is in the neighborhood of $9m.  I have no debt.

Any competent business person would have questioned not only the condition of the property but the accuracy of the appraisal and the severity of the so-called "health and safety" issue based on the background of the client. 

By the way, with respect to the appraisal, a nearby house in the Beechwoods just went on the market.  It is a single 1970's two bedroom house on 8.5 acres.  They are asking $326,000.  My four-bedroom house, with a detached garage and a 65x35' 1850's newly restored  ($150,000) barn on 33.5 acres was appraised for the same amount.  While asking prices don't set market value they do come from consultation with knowlegeable brokers who recommend prices that they think are within 10% of the market value of that property. Any sales or askings that you will find in the Beechwoods area confirm a land value of between $8,000-$10,000 per acre NOT $2,300 per acre that the appraisor used. Your appraisor was heading for the car when I asked if she wanted to see the garage.  She never did set foot in the barn. She was looking for a hook for denial.  Once she found it, she could go home and put her feet up.