A while back I told you about the troubles I was having with Provident Funding. I was in the process of refinancing my home and was using a local mortgage broker. As of today, I have been told that I was not declined however my property is not “eligible” for funding with Provident. Their reason for not funding the loan, they say, is because there are not enough “comps”. They were concerned that one of the comps in my neighborhood that is the same style house, is priced significantly less than our house. The house in question has been on the market for over a year and is listed in “inferior” condition. Provident Funding had our appraisal for 3 weeks before bringing these issues up. I offered to have the house reappraised however that did not change their mind. Instead, they ignored multiple requests from the mortgage broker for an update and did not tell me until 3 weeks after the initial rate lock expired that they were unable to fund my loan. Now I am out $300 for the appraisal and have wasted 2 months on a bogus mortgage they were unable to fund for whatever reason.
Here is an email that the mortgage broker sent over to Provident Mortgage expressing his frustration with them:
I know Travis [loan processor at mortgage broker] has been in contact with you regarding this loan. I have a couple of questions and comments. I do not understand the reason behind the denial regarding the appraisal. We had to get approval of this appraisal company to even use it in the first place. We were asked to provide more information for more comps. The comps were in range from ###k with one less bedroom to ###k with one more bedroom and a basement. His appraised at ###k, exactly in the middle, with no outside or inside structural damage. All of these comps are within a 1.5 mile radius, and are all fair market value. If there is another appraiser that you would prefer us to use, the client is more than willing to comply. He is at 80% LTV with no cash out, and his DTI with this re-finance will be at 18%, he makes more than enough money, and his appraisal is no where near out of line. There are a lot of things that are right with this loan, and nothing I can see wrong. The client feels like it is a random pick to give a denial.