Refinance Drama – Final Chapter (I Hope)

This is hopefully my last post about my refinance as I am hoping that things are now going in the right direction. First, let me wrap up my disgruntled rant about my first failed refinance.

1st Refinance
After speaking with a few people, I decided to contact the bank commissioner to file a complaint against Provident Funding for failing to “fund” my mortgage for what I felt was a bogus reason.  A day or 2 after I sent in the complaint I received an email from the mortgage broker telling me I had every right to file the complaint however I had some dates /times mixed up. After speaking with him, he informed me that my initial rate was locked on December 17th with Wells Fargo and sometime in early January they “flipped” my mortgage over to Provident Funding b/c Wells was taking to long to close loans at the time.  I was not aware this had happened but that does not change the way I feel about Provident Funding.  I’m a little annoyed that the mortgage broker switched my mortgage to Provident but in all reality I would not have cared if it had gone through.

wfhmstandardFinal Refinance (hopefully)
Today the rates dropped a little and I decided to pull the trigger and lock in at Wells Fargo directly. The rate at Wells was 5.0 with 0 points.  I decided to lock in at 4.50% with 2 points.  I feel such a relief that I am locked and and things seem to be moving forward again on my refinance.

Thanks Carole @ WellsFargo in DE!
Kevin

Banks Fearful to lend money

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.

Bankrate Analysts Believe Rates will Fall or Remain Unchanged Next Week

Each Wednesday, experts and Bank Rate analysts try to provide insight as to whether mortgage rates will go up or down over the next week.  I’m hoping they are right as I am still holding out for a better rate.

This week (Feb. 19 – Feb. 25) the experts say: Mortgage rates will most likely fall, or at worst stay flat.

mtg_rates

Beware of Provident Funding – Mortgage Refinance Drama Part 2

picture-3A 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.

I have been locking loans with Provident, and plan to do so in the near future.  I do not want to put another client at risk because he/she may not get approved in the last stage of the process.  I currently have 6 loans locked with you, and [our mortgage company] itself has many more.  I have 5 more on the table right now, and once we get the final back and forth of negotiations, plan to lock them with Provident.  We feel that you are the fairest and quickest out there right now.  Please have some one look at this loan to possibly reconsider.  Please call me if there are any questions.
Thank you in advance for your time and efforts!

Here is what the appraiser said about the house with the same style in our development that is currently on the market:
Comparable #1 was reported to be in need of interior and exterior updating which is reflected in its
inferior condition.

As the mortgage broker mentioned in his email, I was more than willing to have them come out and do a 2nd independat appraisal and would have gone through with the refinance even if the rate were lower.  It baffles me how they can just decline me at the last minute after I have put almost 2 months into this process and spent $300 on an appraisal.  I would recommend that anyone who considers using a mortgage broker, find out which company they plan on selling your mortgage to and do some research.  I did a google search for “Provident Funding scam” and found lots of negative comments on RipOffReport, ComplaintsBoard and XOMReviews.com.

Mortgage Rates Could Go as Low as 4.0%?

I just read this AP article mentioning the GOP wants to add more mortgage relief to the stimulus package.
Officials said the GOP was coalescing behind a proposal designed to give banks an incentive to make loans at rates currently estimated at 4 percent to 4.5 percent. Fannie Mae and Freddie Mac, which were seized by the federal government in September, would be required to purchase the mortgages once banks have made them to consumers.

With current national rates hovering around 5.35%, this would definitely spur many homeowners to refinance. As mentioned before I am in the process of refinancing and have a lock for 4.75%.  If the rate were to go down to 4.0% I might have to refinance again.

Home Refinance Drama…

At the risk of boring you with my personal issues, I thought I’d ramble on a bit about what’s going on with refinancing our mortgage. I had planned on writing about something eco friendly however I’ve been dealing with the refinance for over a month. I locked in to a 4.75% rate with 0 points on December 17th 2008. I was approved and went through the appraisal process at which point I found out our house was valued $30k less than when we purchased it 2 years ago. I decided to go ahead with the refinance anyway since we plan to stay here for many years and I feel that 10 – 15 years from now it won’t really matter what our house was appraised for during this refinance. With all the paperwork in to the mortgage company, all I was waiting for was a date for the refinance. As the lock date was looming, I got a few extra last minute requests from the mortgage company which I gladly complied with (ie my full tax return and a copy of my homeowners insurance).

A few days before the lock was set to expire I found out that the mortgage company, Provident Funding, was contesting the appraisal that had been submitted 3 weeks earlier. They said the appraisal only had 3 comps (comparable houses) in the report and they wanted 4.  After the mortgage broker got a hold of the appraiser, she went ahead and offered a fourth. After another day or 2 with no word, I found out Provident Funding was now saying the fourth appraisal was invalid since the fourth house had a basement and our house did not.

To make a long story somewhat short, I am now in a 12 day lock waiting to hear back the latest about whether Provident Funding will make good on their initial offer or if they will cancel my refinance for some bogus reason.

I’m wondering now if I should have just gone with a local bank that was also offering the 4.75% rate the day I locked in my mortgage. I feel if i had I might not be sitting in this situation but on the same hand I don’t believe this is the mortgage brokers fault as he also would like to get this refinance finished.

As with all other blog posts, I feel the need to offer up some deal advice even though my refinane is not going as planned. I’ve been updating the mortgage rates at a few local Delaware / national mortgage companies. This is by no means a complete list, but feel free to check DealCatcher daily (around 11:30pm) for the most up to date rates from the banks below

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