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Streamline loan refinance

I started a streamline with US Bank which is m formal bank for my loan , been with them for 12 yrs. I submitted a application since the end of January, and I still can not closed this loan. I have submitted everything they require, now they are telling me they need to request another subornation of my 2nd loan because the credit limit is to high and the underwriter will not approved. I only owe 61,000 on my 2nd. don't understand why is taking so long.
  • March 26 2014 - Los Angeles
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Answers (15)

Give me a call. We average 22 days closing. On a refinance it can be much faster.

You can find my contact info by clicking on my name above....
  • March 28 2014
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Many large banks can be have poor service when it comes to the refinance or mortgage process. If you are unsatisfied with your current lender, feel free to check out others. Many people get caught up sticking with their current lender, when there are other better lending options that can be pursued. So don't be afraid to check out other lenders as well. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on refinancing. If you need additional assistance, feel free to reach out. Good luck!
  • March 27 2014
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US Bank is generally terrible in my experience.  Run don't walk.  Find a true mortgage professional (some of whom you've been conversing with on this site) and the difference will be immediate and obvious.  
  • March 26 2014
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From using the info in your reply this does sound like an FHA streamline. I'm not sure that is even the best loan for you as it will require you pay mortgage insurance for 11 years on the new loan. Have you looked into a full refinance so you can use the current market value toward your advantage. You could also potentially consolidate the second and relieve to cosignor if you can qualify on your own, If this is FHA streamline then your lender response about double interest is quite wrong.
  • March 26 2014
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I am so sorry you are having this experience, it just doesn't have to be! They are telling you 5 more days, which means they will not close end of March, so you will be waiting another 30 days to close this in April. If you close at the beginning of the month you are going to pay double interest, no matter what they tell you, that is just how FHA Streamlines work as everyone has pretty much confirmed here. What you may want to do is at least have someone take a look now so that if they are not able to close by the end of April, you at least have something else started and moving! At this point, you need to look out for yourself, which means not continuing to believe what they are telling you or what you think they are going to do at this point. 
  • March 26 2014
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The subornation has come back within 5 days, it seems like the underwriter now needs to see the last subornation with the adjustments to 61,500, Will keep you posted Thank you all for your help. I feel more knowledgeable. 
  • March 26 2014
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From the email it sounds like it is back in underwriting.  I would agree with Justin that because it has a subordination it could take extra time.  Let us know if things do not work out.
  • March 26 2014
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This is a 1st loan my subornation is my equity line, I wanted to combine but they said I could not, my triplex is worth around 400,000. They said they would used the last appraisal back 2002, when I originally purchase for 217,000.00. I originally want to take out my cosigner, but they said my ratios were to high ratio to income. So streamline was my only solution to lower my interest rate and keep my co signer, I did ask for an assumption but they said no, so my other alternative was streamline to lower interest rate. But its been stressful. I have never been late on my loan for the life of my loan to date. I would think they would consider it would be faster, as I am staying with the same bank. This is the last email I email them. 
This is the last email I got from them......
   No mam, you will not be charged double interest unless you close on the first or second day of the month and it is a very good possibility that you would skip two payments.  We always tell everyone to make their payments til normal until they close due to late fees and such if you don't close by the 15th, so whether or not you make that payment is up to you, however, I will keep in touch with you or you keep emailing me and you can decide as the days go by.  Again, this will be a 3 to 5 business day process for underwriting.
now I need to wait another 5 days, stressful.
  • March 26 2014
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Streamline is a general term, are you doing a particular type of Streamline?

It could be FHA or VA Streamline, HARP loans are often presented as Streamline from same servicer, or it coud be a streamline of a loan they own but not part of the above.

Regardless of which type, subordination can sometimes take awhile if the second lienholder is not efficient.   Most can process requests timely, but there are some who will drag out for weeks at a time.   It sounds like they want that loan also modified permantly against further advances to keep the combined loan to value at an acceptable level.

Tough to gauge if US Bank or Second Lienholder is the main reason for delay, my guess is that is some of both contributing to it.
  • March 26 2014
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Wow, that is a ridiculously long amount of time, even with a subordination. Loan Processors pretty much have the subordination process down for these types of transactions or at least they should! In addition, a Streamline is really one of the simpler loan transactions to get done these days. Something is not right. You really should contact another Mortgage Professional to see what you can do to get this closed. You do want to close at the end of the month on a streamline because of the interest accrual. If you start with another company now, you should easily be able to close at the end of April. It sounds to me like something is going on there and the underwriter is just not wanting to close the file. If you have any further questions or need more help, please visit my Profile where you will be able to access all of my information. All the best to you!
  • March 26 2014
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#1 rule on  a streamline you want to close them at the end of the month. When a lender pulls a payoff it does not matter on FHA loan they charge you the entire month worth of interest.  You want to close these at the end of the month so you avoid too many days of daily double interest.  The only way you would ever want to close in the beginning of the month is to get the borrower to skip two payments instead of just one.  You literally skip two payments in your bank account but will pay 60 days worth of interest on that payoff.
  • March 26 2014
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@42nd Place,

I would get a second opinion.  It is not going to cost you anything - if your doing a streamline FHA without an appraisal all your going to waste is time, which you have already wasted.  It would be in your favor to see what else is out there in respect to interest rate and closing fees.
  • March 26 2014
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I just got an email saying they will submit my paperwork for underwriting once again with corrections and we should closed begin g of April. I don't even now if to believe them anymore.
What can I due so they can commit to a date other then just wait. 
Thank you 
  • March 26 2014
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I would get a second opinion and to see what the hold up is.  As the loan officer mentioned below that it should only take 30 days or so. 
  • March 26 2014
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Switch lenders.  This loan should take no more than 30 days to close.  They are running into something else and not being truthful.
  • March 26 2014
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