Poor communication from mortgage officer (approved, lender, purchase, process)

[dad2jules]

It is quite OK and recommended to get rates from several lenders.

What Fant is calling apply is what we in the industry call rate quotes. At this point you should always get a Good Faith Estimate as well from each Loan officer you are considering working with. It is once you have set an appointment with a Loan Officer and signed paperwork, locked rate, and submitted documentation that it is not right to have 2 people working to get your loan approved, because 1 of them is obviously wasting their time. My clients have my cell phone number and can call me anytime, after normal business hours, weekends etc. I work with a broker and not a bank so my availability may be different than a bank employee on salary.

Now back to the original idea that you should have been given a time frame. At the conclusion of a meeting with clients I lay out each step of the process and how long it shoud take. Daddys///M3 works like I do and from my experience most brokers do the same. I let clients know I will submit to Underwrititng on X day. It will take until Y day to get conditional approval, currently it is taking B days to sign off on documents submitted to satisfy conditions. C days to prepare loan documents and closing 24-48 hours after that. I know all of these numbers for the client based on the lender their loan is going to.

If a purchase I have a status report which all parties involved, listing agent, buyers agent and my client, get every Friday.

to Daddys///M3 idea for a suprise visit if you can. You should not have to do this but what you need right now is peace of mind.

Let us know how things turn out.

[jctx]

Excellent information - thank you all so much!
Daddys//M3 - I couldnt copy and paste fast enough. Thanks for taking the time to lay that all out for me, it will be a good skeleton to follow. As far as not having the preapproval goes...I submitted everything requested of me, in the manner requested, to where it was supposed to go. That was when all of the lack of communication started. We later ended up putting an offer in on a house and contracted on it and basically scrapped the preapproval (it had been a while ) to move straight into a loan application. And by the way, she didnt ever require us to fill out a proper application - have you heard of this before? I'll be really upset if we're playing pretend right now until she decides she's held off the unknowing for as long as she could and is ready to get down to business. Because in the meantime we are pouncing to do things immediately when we are asked to. I am still confused as to why she would do this, though. What benefit would this be to her? Oh well...tomorrow begins a new week so we'll see how that goes.

**thought: Would the fact that we have an unusually long closing date have something to do with it? The close date is in May. Oh and another Q: If the close date is in May, can we still firm up everything well before then or will nothing be firm until May? That would be pretty unnerving!

[Kathleen1971]

Originally Posted by Daddys///M3

So basically you are not even sure if you are preapproved yet? This is how I operate, and I'm sure that most LO's nowadays operate this way.

1. Take initial application and verify income and assets via documentation you provide prior to preapproval, pull credit

2. Complete preapproval based on the verified information, run the scenario through automated underwriting (this may not apply in your case), if I receive an approve/eligible finding then I issue a preapproval letter. The process should take no more than 24 hours from the time I receive all of the necessary documentation

3. Provide the complete application and disclosure package, with good faith estimate and truth in lending, within 3 business days of pulling your credit.

3. Once a home is found and under contract I will order the preliminary title report and the appraisal (to be paid by borrower)

4. From there the loan goes into processing where my processor will order verification of employment, hazard insurance binder, etc.

5. Once I have all of these items along with the purchase contract including all offers, counteroffers, and addendums I submit the loan for underwriting. This should take no more than a week from the time I receive the initial offer and acceptance, dependent on appraiser turntimes and whatnot

6. Underwriter will issue a conditional loan approval (timeframe will be lender dependent). This means that there may be some conditions regarding supplemental documentation to clarify certain things, the UW may condition the appraiser for extra comps, etc.

7. Once conditions are signed off then we get a clear to close at which time we draw docs and send them to title

8 Once title receives the docs then everyone is given a copy of the HUD-1 settlement statement to review 24 hours prior to signing

9. We make an appointment for signing

10. There will usually be funding conditions that have to be met by the title company so the time between signing and funding will vary not only based on title meeting the funding conditions, but lender turntimes as well. Once the wire is received at title then they will send a runner to the county recorder's office to record the deed. Once that is done you can get your keys.

Now, there is no reason for an LO not to contact all parties involved (buyer, buyer's agent, listing agent) on a weekly basis to let everyone know where the deal is at, even if there is no news.

Also keep in mind that I am in Nevada and not all states operate the same. Some states do not use a title company for signings, but an attorney. Some states have different procedures regarding funding and recording, so it may be best to touch base with someone with some local experience.

Is there any way you could stop in for a surprise visit? Maybe you just have to corner this LO and explain that the lack of communication is unacceptable.


Off topic, yes the M3 is a BMW but I don't own it anymore. Maintenance and repairs were outrageous so I downsized.

Good Lord. What do you leave for your processor to do if you are doing all of this? You and I wouldn't work well together lol. I like my lo's to originate, take the handwritten app, introduce me to the client and then go originate some more. Unless there is a problem I don't want anyone touching the file but me!

[Daddys///M3]

Originally Posted by jctx

Excellent information - thank you all so much!
Daddys//M3 - I couldnt copy and paste fast enough. Thanks for taking the time to lay that all out for me, it will be a good skeleton to follow. As far as not having the preapproval goes...I submitted everything requested of me, in the manner requested, to where it was supposed to go. That was when all of the lack of communication started. We later ended up putting an offer in on a house and contracted on it and basically scrapped the preapproval (it had been a while ) to move straight into a loan application. And by the way, she didnt ever require us to fill out a proper application - have you heard of this before? I'll be really upset if we're playing pretend right now until she decides she's held off the unknowing for as long as she could and is ready to get down to business. Because in the meantime we are pouncing to do things immediately when we are asked to. I am still confused as to why she would do this, though. What benefit would this be to her? Oh well...tomorrow begins a new week so we'll see how that goes.

**thought: Would the fact that we have an unusually long closing date have something to do with it? The close date is in May. Oh and another Q: If the close date is in May, can we still firm up everything well before then or will nothing be firm until May? That would be pretty unnerving!

The fact that she never took a paper application is no big deal. I often times input my clients' info straight into my loan origination software. However, within 3 business days of taking an application (there is some debate as to what exactly constitutes an application but I have always gone by the date the credit is pulled) the LO is required by law to provide you with a full application and disclosure package. The fact that you provided everything asked of you and you never received a preapproval or disclosure package alarms me a bit. It should only take 24-48 hours, regardless of how busy one is, to run the scenario and issue a preapproval. The long closing date should not factor in. I am working with a client that was preapproved in October. We should close in 2 weeks (he was lowballing short sales).

Originally Posted by Kathleen1971

Good Lord. What do you leave for your processor to do if you are doing all of this? You and I wouldn't work well together lol. I like my lo's to originate, take the handwritten app, introduce me to the client and then go originate some more. Unless there is a problem I don't want anyone touching the file but me!

I am a control freak and as far as I am concerned, it's my file.

[jctx]

Daddys//M3 - Today the lo claimed to not have received anything from me via emails. So today was like day one. She claimed to have received nothing from me (emails, messages, etc). I guess I need to start sending everything to her registered mail, return receipt requested, hehe! Anyhow, today was like "Day 1" for us. She promised to email me this afternoon and also to call. Its 5:46 est, and nothing yet. Starting to feel a bit duped here...

[mparikh05]

Yikes jctx.. terrible ordeal.. Is the "specialized" program REALLY offering that BIG rate bargain? If not, market is ripe with low rates... : ) Dump the LO and get moving since you got a contract with the seller in your hand already!!!!

[jctx]

mparikh05, we have the GFE now, and I had to get insurance quotes yesterday. She said that was all she needed me to do for now and she would let me know when she needed me to do something else. The rate is 5% (is this good bad or ugly?). I'm just having a hard time, given the past 3 wk ordeal of waiting and then her telling me she hadnt received anything from me, just sitting idly by. I am nervous because of her track record, that while I sit by, time is passing and I'm being forgotten. What is supposed to happen next?

[Daddys///M3]

Originally Posted by jctx

mparikh05, we have the GFE now, and I had to get insurance quotes yesterday. She said that was all she needed me to do for now and she would let me know when she needed me to do something else. The rate is 5% (is this good bad or ugly?). I'm just having a hard time, given the past 3 wk ordeal of waiting and then her telling me she hadnt received anything from me, just sitting idly by. I am nervous because of her track record, that while I sit by, time is passing and I'm being forgotten. What is supposed to happen next?

5% is good. Sounds like the loan is in processing now. Nothing you can do now but wait some more.

[NJ987654]

nothing excuses poor service. As a LO, I return calls same day. However, it is crazy busy right now and I've been working many extra hours to keep up with that level of service. Call the company, if he isn't available, ask to speak to someone else who can help. Or, call another lender

[jctx]

Is an approval letter what you get after it goes through processing? Or is it another way of saying preapproval letter?