As most know, I recently got the news that Provident Funding was “unable” to offer me a refi since they were being ridiculous about the appriasal. I recently read and article on Bloomberg.com that made me realize I am not alone. There are a number of people that are running in to the same problem. Banks have now swung in the complete opposite direction…instead of lending to everyone, now they are lending to pretty much nobody.
One hopeful thing I did see in the article was that the person in the same situation as me was finally able to obain a mortgage refinance. According to the article “The customer who was rejected by three banks got her mortgage approved by a fourth, which focused on her high income and credit score, not the appraisal rule, he said, adding weeks to the process”
I contacted the mortgage broker that was written about in this artcle and they told me the bank that finally approved this loan was Wells Fargo. As soon as rates come down a bit more (hopefuly they will), I plan on starting the process all over again with them hoping they will help me refinance my mortgage!
If you live in FL, IL, MN or WI you might want to check with Brian Wickert at Accunet Mortgage as he was the broker that handled this persons refinance and was able to finally get her approved. If you live in one of the other 46 states like I do, try contacing a local Wells Fargo lender and compare their rates to local banks.
Saturday, 7. March 2009
Hi,
I am a Mortgage Broker located in PA and I have been doing business with the same company for over 15 years in the Philadelphia Area. I deal with Provident Funding and they are a very good lender. With my experience with Provident … they are a no nonsense mortgage company. It is a sign of the times.
Did you Broker explain that to you … I doubt it. Provident tells you up front that they need more than 3 comps. They also do their own field review. You really have to have a solid Appraisal. A lot of the mortgages that went into default were based on bad appraisals. Can’t blame Provident for being overly cautious.
Everytime I deal with Provident I explain to my customers that they are a no nonsense company. Any slight imperfection could cost you the lock in rate. They process/approve their loans in a timely fashion. You have to fit their mold. If you don’t … they move on. I am surprised that you were dealing with Provident over an Appraisal issue for so long. They give answers very quickly. Faster than any mortgage company around. Their model should be used in every mortgage company.
Your Broker was suppose to guide you through the mortgage maze. If he/she does not explain to you the pitfalls … what do you have?
I have picked up deals from Wells Fargo mistakes and Chase etc. Every deal has it’s quirks. People should shop around for the best rate and the most qualified person to help their situation. Just don’t look at fees and points. Also, look for that person to be at settlement … after the transaction … will he/she be around to answer all your questions?
I meet face to face with every new/old customer. Don’t understand why people can deal with someone over the phone only.
Overall, I am glad to see you got what you were looking for in a mortgage.
Take Care.
Sunday, 8. March 2009
Thanks for the information Bill. As I found out a few days ago, they did give the response quicker than I had realized…I was just under the impression that I had the lock with them since Dec 17th and what I found out a few days ago after filing the complaint was that my mortgage was “flipped” from Wells to Provident by the broker on Jan 9th. I believe the final denial came back around 1/27 which is almost 3 weeks later but that was after a few updates from the appraiser.
Friday, 10. July 2009
Kevin,
I was refinancing about the same time you were. It was for a 2nd house to which I had recently moved (hadn’t even made the first payment on the original mortgage yet). My other house was on the market, I’d moved to take a new job in a different state. I was looking to reduce the payments on the 2nd house because it was tough carrying 2 mortgages.
I first went to Wells Fargo, which held the mortgage on my 1st house and I’d been happy with them. But Wells would not approve me. The Wells broker I dealt with went to an independent broker friend of his who submitted me to Provident Funding at an acceptable rate with 0 points. Provident wanted a new appraisal even though the original was only 3 months old. The new appraisal came in a little lower than the previous one but still left me with a downpayment of about 21-22%. At first I was told that the new appraisal was fine and the deal was a ‘go’, but a few weeks later as closing approached I was told that because of concerns with the appraisal I would have to pay 1 point to keep the rate I was offered. I argued and didn’t want to pay the point but also didn’t want to accept a higher interest rate as it would have defeated the purpose of the re-finance. I ended up getting the original rate and paying 1/2 point. I never did find out what the issue over the appraisal was.
I wasn’t happy about having to pay the 1/2%, but I was happy to get refinanced (and originally financed) at all given that I was carrying 2 mortgages, Wells Fargo didn’t want me, and in truth one or the other of the mortgages would now be in default if I hadn’t been able to rent the 1st house when I gave up on trying to sell it.
JEff