East West Bank (United States)

We had a commercial mortgage loan that started in 2007 with a bank that was later either acquired by East West Bank or its accounts were transferred to East West Bank and the loan was a 10 year loan fixed for 3 years and adjustable afterwards at 2.5% over 6 month LIBOR. The orignial amount of the loan was $900, 000 and the purchase price of the property was $1.375M and after the 10 years the balance was about $700K. Our adjustable loan did not have a floor. In March of 2017 we were told that we need a new appraisal and some costs but the rate will remain at 2.5% over 6 month LIBOR as evidenced from this email:

Matt Heidari
Attachments
Wed, May 27, 12:41 PM
to Jessie, Mahmoud, Manny, Sanford

From: Jessie Nguy
To: Mahmoud Heidari
Cc: Aaron Tam
Bcc:
Date: Thu, 23 Mar 2017 19:59:42 +0000
Subject: OCE Carmichael II, LLC
Hi Mark,
Thank you for coming to our office yesterday to meet with us! It was nice to meet you in person. Here is a recap of what we discussed:
1.) Bid for appraisal is out and I will let you know what the fees are once we receive the bids

2.) Please let me know what Title company you'd like to use. - I will need to order an updated prelim from them

3.) 12/31/2016 Operating Statement (P&L) - Has this been completed yet?

4.) Loan Terms: 10 year term @ Libor + 2.50% (same as current rate), 0.25% loan fee, documentation fee of $850, processing fee of $250, title/closing costs - TBD, appraisal fee - TBD

Let me know if you have any questions.

Thanks,
Jessie
EWB
Jessie Nguy
AVP-Portfolio Officer
Comm Real Estate Banking-No CA
Main:
415.315.2864
Cell:
415.653.2760
Jessie. [protected]@eastwestbank.com
East West Bank
555 Montgomery Street 10th Fl.
San Francisco, CA 94111

We satisfied all the conditions and the loan got approved but without telling us they threw a floor in the interest rate and I did not noticed it and signed documents only to find out a few months ago because our interest rate did not go down to 2.5% plus 6 month LIBOR. In the next 12 months that little trick by the bank will cost me about $7000 more than what I would have been paying with the same terms that I was promised. I have contacted the officer of the bank and our account manager but they refuse to honor what they had told me that I would have the same terms meaning 2.5% over 6 month LIBOR with no floor.

Sincerely,
Matt Heidari, CPA
OCE Carmichael III, LLC
[protected]