I received a phone call last night from a client of mine that I've done a few mortgages for- but most recently a HELOC through CITI. I have done a ton of business with CITI, and due to a few unethical things they have done, I refuse to do business with them any longer. BUT this takes the cake.

It seems that CITI is calling upon the super fine print at the bottom of the closing docs and RE-EVALUATING ALL LINES OF CREDIT. They are claiming that due to 'property devaluations' all lines of credit will be adjusted accordingly. Now, we did a HELOC about a year ago. If anything, her value has gone UP. She's done a ton of renovations and where the property is located is considered to be pretty insulated from the average market woes.

What does this mean for my client? Well, for one she is now maxed-out. Her credit line was chopped down to where she had already used funds. So, this will affect her credit score of course. But it gets worse. The letter was dated for the 24th of this month, but said that the new terms took effect on the 21st. So, retroactive. Fine, I get that they don't want a mad rush out to use the rest of the funds in the HELOC accounts. BUT, she had just sent a check out- a check that must now be returned. So that's hit number two against my client.

Why not send a letter a month prior to the change saying 'do not send ANY checks out as they will not be honored. As of this date, your new credit limit will be XXXXX.' Is it entirely necessary to screw people over at all times? I know every lender is desperate- I don't question what they did. But I question how they did it.

Also, I am starting a group called 'Battle Scars'. Look for it. We can discuss our nightmare clients, nightmare bosses, and all the bad stuff that happens in the real estate and mortgage industries.