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Old 09-24-2008, 09:00 AM
 
3,387 posts, read 8,022,179 times
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Situation - bank [BOA] is incommunicado - not responding to calls for updates - was not able to lock when rates were down [communication] -etc.

There is nothing wrong with my dad. 830 credit score, no debt, 5 times as many assets as the house costs [just do not want to liquidate now due to tax impact - wants to do it slowly over time ], etc.

The BOA no fee loan was an adequate deal at the approval phase were mean rate was 6.5, loan rate was 7.0. NOW they are saying [on the board at the bank, still no communication] that rate was 7.25 on Friday before the rates went up . What the heck is going on there? I understand a higher rate to recoup up front fees and no PMI on a 90% loan but this is high enough to NOT make it a good deal. I don't even know what the actual rate is because they won't return calls.

Anyway - now have talked with independant broker and have lock on 5.87 rate with no points and no origination fee [could get 5.75 with 1% fee] loan with PMI applied would still have payments more than $100 less than BOA.

Of course bird in hand vs bird in bush is only reason for hesitancy - but this mortgage lender is SIL of someone I trust and believe he is on the up and up - but the lack of communication from BOA really is getting to me. Also the truth in lending statement showed fees that they said were not going to be charged [another red flag-$1400 of charges that BOA said they would "pay for"] what we are getting from this independant is much more clear cut and straightforward.

So, what happens if my father sends in the supporting documentation, he reviews and gives final "looks good" and we cut strings with BOA*? I guess the risk is underwriting messes us up . . . . but is it all the same underwriting? The independant sent our stuff to fannie mae for approval and is now fed exing the application and we are preparing to fed ex a big bundle of supporting documentation.

*I am guessing they will come after us for fees but if they do, and the other lender uses same service providers, aren't they obligated to give us the things like flood determination, appraisal, etc.
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Old 09-24-2008, 09:47 AM
 
Location: Tampa,FL
54 posts, read 189,235 times
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Nothing is in stone until you sign the paperwork. If BOA is screwing you around, tell them to pound sand. Communication is the key in any relationship, no matter if it is a simple loan or a marriage. If you dont know what is going on, drop them quickly.

I usually call my borrowers every other day just to update them even if there is no update. It makes them feel secure in using my services and is a good business practice regardless what industry you are in.

If the other broker already has a DO/DO approval and is sending in your application, go with him. The major thing in a loan transaction is that you use someone you trust. If you cant trust them with one of the biggest financial investments, then you should not use them. Good luck!!!
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Old 09-24-2008, 10:50 AM
 
Location: Fort Myers, FL
1,286 posts, read 1,936,356 times
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Good Job on going to a broker! As you can see you got a much better deal. Forget BoA if they wont return calls.

You have gotten your father a better rate, lower fee's and saved him money. That's why its smart to shop around.
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Old 09-24-2008, 10:52 AM
 
Location: Fort Myers, FL
1,286 posts, read 1,936,356 times
Reputation: 248
Quote:
Originally Posted by grannynancy View Post
*I am guessing they will come after us for fees but if they do, and the other lender uses same service providers, aren't they obligated to give us the things like flood determination, appraisal, etc.
nope. they cant come after you for anything. its their own fault. the fee's are only incurred when you decide to close and sign the documents.

if you paid a application fee, you wont get that back.
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Old 09-24-2008, 11:28 AM
 
3,387 posts, read 8,022,179 times
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Thanks for the input - I tell you things have gotten crazier since 2002 when I got my mortgage where it was all very very very clear and with daily communication [Wachovia at the time] with the lender. The communications with the broker seem clearcut as well.

Since then, I already know [my loan has changed hands 3 times] that they any mortage will be sold anyway.

I appreciate the input. No, all he has signed is the application paperwork, good faith estimate, etc.

Oh yes, this broker took info over the phone, made it more conservative than it actually is [understated assets and income, not overstated] and called us back with approval - said he sent to Fannie Mae - and we are sending in supporting documents today for underwriting. We got the fed ex and it is all very clear - nothing like the convoluted paperwork BOA sent.

Last edited by grannynancy; 09-24-2008 at 11:54 AM..
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Old 09-24-2008, 03:19 PM
 
Location: Kansas City, MO
5,740 posts, read 6,223,807 times
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Nothing is a done deal until the loan is funded. Thats same day for purchase and 3 days later for refi do to buyer remorse laws.
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Old 09-24-2008, 04:06 PM
 
Location: Richardson, TX
6,589 posts, read 10,123,979 times
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Quote:
Originally Posted by grannynancy View Post


The independant sent our stuff to fannie mae for approval and is now fed exing the application and we are preparing to fed ex a big bundle of supporting documentation.

*I am guessing they will come after us for fees but if they do, and the other lender uses same service providers, aren't they obligated to give us the things like flood determination, appraisal, etc.
Sending your stuff to Fannie Mae means he put the information into the computer and sent it through Fannie Mae's automated underwriting system. THAT is the same whether done by the broker or B of A. Those are the requirements needed to sell the loan to fannie mae after closing.

However, each bank also has their own underwriting requirements, so there could be some differences between B of A and the new bank your broker is going with.

B of A is not obligated to let you use their appraisal with the new lender, and the new lender will also have to reorder the flood cert, as far as I know. (those are really cheap though)
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Old 09-24-2008, 05:53 PM
Status: "Now working for a true portfolio lender" (set 8 days ago)
 
Location: MID ATLANTIC
3,957 posts, read 8,530,900 times
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Where to start.....

The No Fee Mortgage is truly a no fee product. The only thing the borrower must pay is anything w/ the word "tax" in it, and escrows, which are voluntary, not required. It is my understanding a borrower can only request (demand) a copy of the appraisal if they paid for it. In a NFM, the borrower does not pay for anything. And, even if not a NFM, BofA charges an application fee, which does not entitle the borrower to a copy, however, the application fee must be refunded if the loan is denied.

BofA has several methods of originating loans. There is LoanLine (800# and website), bank branches and retail originations. All three may have different pricing policies and actually give different quotes, with different latitude to quote. LoanLine and Retail can cut the interest rate rather deep, compared to the bank branches (and I don't think they can even do the NFM). I can't tell what part of the country you are in, so I would only be guessing which processing center would be handling your dad's application. The good news, they won't be coming after you for fees, but they won't be sharing anything with you either.

What I would recommend is proceed with the second application. It's up to you if you want to disclose the double app, at this point, I would keep it quiet until loan approval was received. Remember, BofA there was no charge, so nothing is lost by leaving an application there. You could also contact someone in the retail department and tell them about your horrible experience with LoanLine (that is my guess where he got on board w/ them) and that they are very close to losing his business. A few hands would get smacked, but I am betting the retail loan officer would be very proactive with his/her manager in getting that loan out of LoanLine for better handling and priced aggressively. It may be worth a shot. In the meanwhile, you can be very upfront with the other loan officer and if both get the loan approved in time for closing, the best deal will win. Once the loan is moved within BofA, tell them the same thing. No one likes to be double app'd, but from the consumer's point of view, you win by making the approval in time w/ the best rate of the two.
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Old 09-24-2008, 06:30 PM
 
3,387 posts, read 8,022,179 times
Reputation: 2344
I would only have asked for the appraisal if they told him he had to pay for it if he did not close with them.

Actually - they are further behind than I thought, telling me** they did not have documents we personally took to the branch office over a week ago for faxing, which were checked by the loan agent there, and which they faxed on the spot. So the entire process with BOA was done at the branch, directly, but the management is done at their main office.

We got the info on the rate at BOA today and it is STILL 7% [even though it was NOT locked]. It was 7% when actual average daily rate was 6.5% and 7% today when the daily rate was 6.08%. I realize there is a chance the rates my drop further but to me anything below 6% is a "go" and things are too volatile to take a chance. The thing about branch vs loanline vs retail, makes sense as to why they are not dropping it.

I think your advice is good concerning BOA and the plan to hold on until the 2nd bird is in the hand.

**finally got a call today
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Old 09-24-2008, 07:35 PM
 
82 posts, read 214,072 times
Reputation: 14
are they paying title insurance also? That rate with no pints a mi is bs. If he was a first time homebuyer it may be possible but without mi? A normal rate with 20% down is around 6.125%, to pay lender fees and title insurance the rate would have to be at least 6.375-6.5%. The broker will proably hit your dad when a point at closing or origination fee...
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