And you thought AMCs were bad. Try to Refi and meet Scam Mortgage Brokers, times 3!

[Elliott]

I'm getting up there in years, I can look down the road and see that inflation engine is heating up, so I thought, It would be a good idea to get one of those 2.5% mortgages for 30-years and do some repairs on the house. Update the baths, remodel the kitchen, new carpet and hardwood plank floors. So I have tried with 3 mortgage brokers and this is what I've found:

After application, BofA, Better Mortgage, and Amerisave Mortgage all did the same thing. They require a ton of documents to be uploaded and then they require a signed loan commitment and $500 to $880. So the rate looks good, the fees are a little high, but you figure you are going to be paying with dollars that are worth 50% less than they are today and only paying 2.5% interest. But you can never supply enough documents to get loan approval or get to closing. So you agree to the 'upfront commitment fee.'

And then nothing, and then a request for more documents, and then more documents, and then more of the same documents. And then the mortgage broker goes on vacation, or won't return phone calls, or emails, or just disappears. Honestly, this has happened all three times. I have a great credit score, more than enough income, and little debt. If you do a little research you find you are not alone. It has become standard operating procedure so the scum mortgage broker can get you to give up and they can keep the $500 to $880. On all three I've had to dispute the credit charge and end up getting the charges canceled. But it such a pain and waste of time. Is this what the mortgage refi business has really become? Is it because they don't prosecute crimes under $1000?

 

[Mejappz]

I'm getting up there in years, I can look down the road and see that inflation engine is heating up, so I thought, It would be a good idea to get one of those 2.5% mortgages for 30-years and do some repairs on the house. Update the baths, remodel the kitchen, new carpet and hardwood plank floors. So I have tried with 3 mortgage brokers and this is what I've found:

After application, BofA, Better Mortgage, and Amerisave Mortgage all did the same thing. They require a ton of documents to be uploaded and then they require a signed loan commitment and $500 to $880. So the rate looks good, the fees are a little high, but you figure you are going to be paying with dollars that are worth 50% less than they are today and only paying 2.5% interest. But you can never supply enough documents to get loan approval or get to closing. So you agree to the 'upfront commitment fee.'

And then nothing, and then a request for more documents, and then more documents, and then more of the same documents. And then the mortgage broker goes on vacation, or won't return phone calls, or emails, or just disappears. Honestly, this has happened all three times. I have a great credit score, more than enough income, and little debt. If you do a little research you find you are not alone. It has become standard operating procedure so the scum mortgage broker can get you to give up and they can keep the $500 to $880. On all three I've had to dispute the credit charge and end up getting the charges canceled. But it such a pain and waste of time. Is this what the mortgage refi business has really become? Is it because they don't prosecute crimes under $1000?

It's a scam. Don't worry; they will find a way to blame it on the appraiser.

 

[Mejappz]

BofA, Better Mortgage, and Amerisave Mortgage

All criminal enterprises. Try a local credit union or bank.

 

[Terrel L. Shields]

I "bank" with a bank. I don't mess with anyone else. It's like dealing with loan sharks. - I am glad I don't have any loans to worry about now.

 

[Alsie35]

Thank the good Lord for VA loans. I got my loan through Revolution Mortgage, and was very happy with them. You may want to check them out.

The amount of paperwork the underwriters wanted, however ... well let's just say that when you are self-employed they do what I call a "Financial Proctology Exam". USAA did the same when I refinanced with them a few years ago. But it all worked out in the end.

 

[Elliott]

I thought as a good consumer I should check rates, compare closing costs, interest rates and apr, I think the government tells me so with gov't paid ads. I called the locals and their rates were higher by 1/4 to 1/2%. I thought that going with with the company with a lower cost of money I was doing my duty as a citizen to more efficeintly use a limited supply of a scarce resource (capital). Yeah I know the Fed prints it out of thin air, but you know what I mean.

I didn't know that 'time' is not of the essence when it comes to getting the $500 brass ring of a mortgage application fee.

 

[Charles West]

I'm supposed to sign with my closer this Monday after a couple of cancelations. Company is Loan Depot. I can only assume the pandemic is causing havoc with their operations. Worst underwriting experience I've ever experienced. The process has taken 107 days as of today which is Saturday morning. Despite having told them upfront my estate is in a trust it took them 90 days to actually figure that fact out after numerous nonsensical, illiterate questions sent my way. They kept asking me to provide proof that I do not own a couple of properties that I clearly do own. Absolutely bizarre. Still, I'm getting a cash out refi at 2.875% which to me, at 67 years of age, is astonishing. Money will be used for rental renovations down the road.

 

[Charles West]

I forgot to add that Wells Fargo told me they couldn't touch that rate of 2.875%.

 

[Charles West]

And the age thing is a big deal over 65 and if your 75 and above a real crap shoot.

 

[Elliott]

Charles,
I've had the same issues on other property ownership. My purpose was to update/remodel, which I use to think was a good thing encouraged by lenders. On the age thing, I thought lenders could not discriminate because of the age of the applicant. I'd like to think I have the same rights as other people regardless of my age, gender, or race.


FTC:

"Mortgage Discrimination

Mortgage discrimination is against the law. That’s important to know if you’re thinking about applying for a mortgage to buy, refinance, or make improvements to your home.

If you’re in the market for a mortgage, the Federal Trade Commission recommends you research the different types of mortgages and available rates, as well as laws that protect you from discrimination. Here’s some information to help you get started."

DOJ:

"The Equal Credit Opportunity Act

The Equal Credit Opportunity Act [ECOA], 15 U.S.C. 1691 et seq. prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.

The Department of Justice may file a lawsuit under ECOA where there is a pattern or practice of discrimination. In cases involving discrimination in home mortgage loans or home improvement loans, the Department may file suit under both the Fair Housing Act and ECOA. Individuals who believe that they have been the victims of any unfair credit transaction involving residential property may file a complaint with the Department of Housing and Urban Development [HUD] or may file their own lawsuit."