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Answers (23)
Best Answer
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
- Andrew Adams, "203K Specialist"
- Contributions:9349
Bikoy,
That statement still stands. The issues are separate. The fact that the LO stinks at telling you what you need to provide to have your loan approved doesn't impact the rate lock.
If the lender was providing good service -
1. this would never have happened
2. if it did they would likely try and make it right...
3. So ask...but don't be angry or surprised when they continue to offer poor service and refuse to offer you anything but more excuses.
4. The longer you wait to abandon the LO the more likely you are to end up stuck with them as rates continue to rise.
That statement still stands. The issues are separate. The fact that the LO stinks at telling you what you need to provide to have your loan approved doesn't impact the rate lock.
If the lender was providing good service -
1. this would never have happened
2. if it did they would likely try and make it right...
3. So ask...but don't be angry or surprised when they continue to offer poor service and refuse to offer you anything but more excuses.
4. The longer you wait to abandon the LO the more likely you are to end up stuck with them as rates continue to rise.
- bikoy
- Contributions:30
I thought P-e-t-e spells Pete and not "Bikoy"....my bad.
Bikoy,
Because you are being asked to provide additional documentation to approve and close your loan...you feel entitled to a lower rate?
You can ask for anything, just don't be angry if you don't get the answer you want.
Bikoy,
Because you are being asked to provide additional documentation to approve and close your loan...you feel entitled to a lower rate?
You can ask for anything, just don't be angry if you don't get the answer you want.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Bikoy,
My previous posts were mainly directed at Pete. It sounds to me that this lender is giving you the run around and truth be told you should dump them....Much easier to do now that rates have dipped down provided you have not invested a whole lot of money with them.
Your issue is service not rate lock. If you can get a similar or better rate from another lender you should reward the current lender for the poor servive by taking your business elsewhere. If the loan is an FHA loan you have the added hurdle of getting the case number assigned to the new lender. But that is a hurdle that can be handled.
My previous posts were mainly directed at Pete. It sounds to me that this lender is giving you the run around and truth be told you should dump them....Much easier to do now that rates have dipped down provided you have not invested a whole lot of money with them.
Your issue is service not rate lock. If you can get a similar or better rate from another lender you should reward the current lender for the poor servive by taking your business elsewhere. If the loan is an FHA loan you have the added hurdle of getting the case number assigned to the new lender. But that is a hurdle that can be handled.
- bikoy
- Contributions:30
Andrew...I am not going to be angry...if you had paid attention to my post and looked at it in a consumer's point of view...it's called weighing the options. You on the other hand, seem to not like the fact that people want to know what their options are. I only posted this question because my rate lock will expire and once again...frustration that the lender asks for one documentation at a time (takes 3-4 days to review). Pushed my closing twice now and now we're looking at an extension and a fee of $700. Of course I do feel entitled to the rate I deserve. If I was informed that the rate was because of a problem in my credit or whatever, then I wouldn't have been here posting this question. But I haven't received a definitive reason as to why. So the rate lock is going to expire...then I don't see the reason why I should hang onto to this lender or even broker.
I'm sure you're coming from a "business" stand point. I think...in this case, we both are. Money is money, right?
I'm sure you're coming from a "business" stand point. I think...in this case, we both are. Money is money, right?
- Andrew Adams, "203K Specialist"
- Contributions:9349
Bikoy,
Because you are being asked to provide additional documentation to approve and close your loan...you feel entitled to a lower rate?
You can ask for anything, just don't be angry if you don't get the answer you want.
Because you are being asked to provide additional documentation to approve and close your loan...you feel entitled to a lower rate?
You can ask for anything, just don't be angry if you don't get the answer you want.
- bikoy
- Contributions:30
Is it really wrong to request or renegotiate for a better rate if the rate lock expires because the underwriter asks one too many documentation one at a time and takes 3-4 days to review? From an orignal closing of July 3rd, then the 15th, now by end of the month...can you really blame me if I ask for a lower rate?
- Andrew Adams, "203K Specialist"
- Contributions:9349
If they want to better the deal they should not have locked. The banks are reacting to the market. The banks set rates based on the cost of funds. When the cost of funds shoots up rates go up...
You can't blame the lenders and or banks for the rate swings either....We are seeing huge swings in the price of gas...who do you blame? The gas station? Exxon? OPEC? Futures Traders? Mother Nature for shutting down off shore drilling with hurricanes? Obama? The rate fluctuations are not in the banks or lenders control...The MBS market and how it is trading impacts rates and all of the above impacts how that market moves. We are in completely unchartered waters and to be very blunt...if rates were more stable it would be because the Govt isn't keeping rates artificially low. One thing is for sure no one would be complaining about getting a rate in the 5's!
You can't blame the lenders and or banks for the rate swings either....We are seeing huge swings in the price of gas...who do you blame? The gas station? Exxon? OPEC? Futures Traders? Mother Nature for shutting down off shore drilling with hurricanes? Obama? The rate fluctuations are not in the banks or lenders control...The MBS market and how it is trading impacts rates and all of the above impacts how that market moves. We are in completely unchartered waters and to be very blunt...if rates were more stable it would be because the Govt isn't keeping rates artificially low. One thing is for sure no one would be complaining about getting a rate in the 5's!
- bikoy
- Contributions:30
That is where my frustration lies, Rudi. The underwriter asks for one document at a time then reviews them 3-4 days later only to ask for another one. I'm just tired of hearing my broker says..."We're at their mercy".
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Pete, the broker is not the only party. You have the processor, the lender, their support staff and escrow. All have done tons of work. None get paid unless the loan funds.
New laws start next month were we cannot even collect for an appraisal until the borrower signs the Truth in Lending Statement. ... Maybe we should all go on Retainer with an hourly billing as other professionals. If someone decided to go elsewhere at least we would all get paid for the effort we put forth. That would be fair, wouldn't it?
Bikoy, most lenders today require all conditions to be submitted at one time. Not piece-meal.
New laws start next month were we cannot even collect for an appraisal until the borrower signs the Truth in Lending Statement. ... Maybe we should all go on Retainer with an hourly billing as other professionals. If someone decided to go elsewhere at least we would all get paid for the effort we put forth. That would be fair, wouldn't it?
Bikoy, most lenders today require all conditions to be submitted at one time. Not piece-meal.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Pete,
You seem to think the broker benefits from not offering you a lower rate. The brokers don't make the rules we simply have to play by them.
You seem to think the broker benefits from not offering you a lower rate. The brokers don't make the rules we simply have to play by them.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Pete.. I here you and it is only magnified by the size of this transaction but under your rationalle I should go back to the hotel I stayed at last weekend becaused I booked it a few months ahead of time as opposed to the guy how booked a few weeks and may have gotten it for a few dollars less. All we can do is work with the information that is available at the time we make a decision and make the best possible one.
- PeteJE
- Contributions:13
Joe, I hear you, and, as the system is now then we do owe our brokers all good faith and understanding about what a lock means and entails. Your advice, as the industry works, is dead right. The consumer just has to be extremely understanding of the process. I locked my first with a broker here and was very clear what a lock meant - I could have done .25 better in the discount fee the way the rate sheet moved for me, not a big deal but far from easy to swallow.
I just can't get pass the day to day inequality in deals for situations that really aren't changing all that quickly in risk. My creditworthyness and home value was the same when rates were 4.8 as it is when they were 5.6. (only sheer luck had me shopping the loan when they were the former).
As a consumer, you must realize how maddening this is - take my post as more of a missive about how lending currently works. It is crazy the the cost of money could swing so wildly and quickly while just going through the underwriting and closing process. How would you feel if you bought a nice new car and three days later the same dealer is selling the exact same car you your neighbors for far less? It just stinks for consumers.
I just can't get pass the day to day inequality in deals for situations that really aren't changing all that quickly in risk. My creditworthyness and home value was the same when rates were 4.8 as it is when they were 5.6. (only sheer luck had me shopping the loan when they were the former).
As a consumer, you must realize how maddening this is - take my post as more of a missive about how lending currently works. It is crazy the the cost of money could swing so wildly and quickly while just going through the underwriting and closing process. How would you feel if you bought a nice new car and three days later the same dealer is selling the exact same car you your neighbors for far less? It just stinks for consumers.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Pete..So basically you want your cake and eat it too. Would you be okay if the broker started passing pare-off fees to you or additional underwriting fees should the lender start passing those in to the broker.
The only thing that the borrower can do is ask up front what the renegotiation policy is and make an informed decision from there on whether to lock and/or go with that lender
The only thing that the borrower can do is ask up front what the renegotiation policy is and make an informed decision from there on whether to lock and/or go with that lender
- PeteJE
- Contributions:13
I read many times here about honoring locks and how important it is for the broker / lender relationships and ultimately better rates overall. I honored my lock with my very good broker and his wholesale lender even as rates were down just a bit at my close. I do understand the need for the lock on both sides, but, at a certain point as a consumer I call BS.
Brokers have to understand that even a small improvement in rates equals real cash flow dollars to me over a very long time. I want to be in my home to retirement. I want my refinance to be my last on this home. If a small rate improvement could mean even 50 dollars a month less for me that is a big deal. For many the difference can be hundreds. As a consumer, missing this savings or better rate because of timing or even intra-day changes is illogical, maddening, and very unfair.
So, I understand to keep the best lenders you brokers need to have honored locks, but you brokers have to see how ridiculous and unfair this way of doing business is for borrowers. Every time the brokers here come down on a borrower for wanting a better deal that they deserve no less than any other consumer I have to admitt I don't side with the brokers.
Brokers have to understand that even a small improvement in rates equals real cash flow dollars to me over a very long time. I want to be in my home to retirement. I want my refinance to be my last on this home. If a small rate improvement could mean even 50 dollars a month less for me that is a big deal. For many the difference can be hundreds. As a consumer, missing this savings or better rate because of timing or even intra-day changes is illogical, maddening, and very unfair.
So, I understand to keep the best lenders you brokers need to have honored locks, but you brokers have to see how ridiculous and unfair this way of doing business is for borrowers. Every time the brokers here come down on a borrower for wanting a better deal that they deserve no less than any other consumer I have to admitt I don't side with the brokers.
- bikoy
- Contributions:30
Norm, you are correct. But as a homeowner, when the lender asks one document at a time from my broker, then my broker asks that from me...for the underwriter to take 3-4 days before reviewing one document...then in my eyes...they are giving me a hard time.
I furnished them copies of the basics (w2s, paystubs, etc). The loan was put on their table last June 06. First they wanted a letter from my employer to say that bonuses & comm will stay - took 3-4 days to review, then they wanted something else,etc...Gave us a conditional approval but then won't give us clear to close. Last week they wanted my tax return, took 3-4 days to review...now they want cancelled checks. We were supposed to close Jun 03, it got re-sched to the 15th. Now we're looking to not close until (probably per the broker) end of the month.
My rate lock at 6% will expire on the 16th, meaning there's a $700 fee that the lender charges. This is the only reason why I asked if I could go somewhere else and get a better rate if this lender will not renegotiate. I've asked my broker so many times to do this (renegotiate our rate) but she always beats around the bush.
I can understand you, Julie, as a broker, have that "relationship" with your lenders. If that's your first and foremost priority, then where does your relationship with us, borrowers, lie?
I furnished them copies of the basics (w2s, paystubs, etc). The loan was put on their table last June 06. First they wanted a letter from my employer to say that bonuses & comm will stay - took 3-4 days to review, then they wanted something else,etc...Gave us a conditional approval but then won't give us clear to close. Last week they wanted my tax return, took 3-4 days to review...now they want cancelled checks. We were supposed to close Jun 03, it got re-sched to the 15th. Now we're looking to not close until (probably per the broker) end of the month.
My rate lock at 6% will expire on the 16th, meaning there's a $700 fee that the lender charges. This is the only reason why I asked if I could go somewhere else and get a better rate if this lender will not renegotiate. I've asked my broker so many times to do this (renegotiate our rate) but she always beats around the bush.
I can understand you, Julie, as a broker, have that "relationship" with your lenders. If that's your first and foremost priority, then where does your relationship with us, borrowers, lie?
- Julie Messina, "CNN Mortgage"
- Contributions:70
It's a little hard to know why she is having such a difficult time getting you to closing without more information on your application.
To answer your first question, it is not ethical to switch lenders just for a better rate, and the banks we sell our loans to expect our rate lock commitments to "pull thru" at acceptable levels or we do face consequences. Most lenders will re-negotiate a floatdown though, I just did that with BofA on a purchase money loan last week.
If however your broker cannot obtain an approval and that is causing the delays then you have another problem. Better find out what is really going on.
To answer your first question, it is not ethical to switch lenders just for a better rate, and the banks we sell our loans to expect our rate lock commitments to "pull thru" at acceptable levels or we do face consequences. Most lenders will re-negotiate a floatdown though, I just did that with BofA on a purchase money loan last week.
If however your broker cannot obtain an approval and that is causing the delays then you have another problem. Better find out what is really going on.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
How is the lender giving you a hard time? Usually when you deal through a broker, the lender will only communicate to that broker, not to the client directly.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Be sure to place an adequate review for her. It is the only thing that keeps us honest on this site
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Unfortunatley you are probably too late to switch brokers becasue you would run the risk of losing the house all together. Of course she will pay the extension fee as there is more than enough money in the rate to pay for it. I think you are kind of in a pickle and it is too bad that she convinced you to lock in at such a higher rate. Did you find this broker on Zillow. If so this would defiently deserve a poor review.
- bikoy
- Contributions:30
We're sched to close on the 15th (originally 07/03) but now my broker seem to think that we will "extend" this again and she will just pay the fee to the lender because my 6% rate will expire on the 16th. I told her that I just want to let that expire and that she put me with another lender to get a better rate since now, we're looking to close by the end off the month... :(
Can I lock in an interest rate with another lender if I already have one on the table?
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