Posted on: 29th Apr, 2011 01:19 pm
Hi! I have been working with a bank who is handling my loan processing extremely slow. They have treated me horribly and know I am in a time crunch. I started off working with one officer who didnt bother telling me things that would delay my loan until AFTER my contract was accepted and my time had begun ticking. He also told me to "talk less and listen more". Well I am a first time home buyer and have a ton of questions. I think I have a right to ask them. I then complained to his superiors who agreed he treated me wrong and would take over my loan. I met with them on Tuesday of this week and they said everything would be processed that day if not the next. I had to give them the contact for my second job who could verify employment. I gave them the owner of the company, instead they somehow get a number to one of the investors in the company and call him. He agreed to get the the info they needed but realized after they sent him the paper he couldnt and with the owner being out of town and he didnt realize the urgency of the matter he just held off on the return of the owner. I emailed the mortgage co on Friday (today) and checked on things since I had not heard anything. I come to find out they still have not applied for my grant because they have not received the job verifacation (which is not even being included in my income) AND no one has bothered to follow up on it. I am going to have to pay a $25.00 a day penalty fee for any amount of time my contract goes past the 45 days without settling and the longer they hold things up the more I will have to pay. Do I have any recourse here to make them eat some of the penalty fee's?
Unfortunate situation you are in. Is this a large bank? Large banks are really slow on processing and underwriting or closing for that matter. Generally about 60 days. You should contact the escrow agent, and your agent and the listing agent to see if you are to be penalized. It depends on your contract. But one of your contingencies is your ability to obtain financing, which is not complete. Therefore all the contingencies have not been met. What type of loan are you trying to obtain. How long has the process been? Sounds like you are getting the run around. You can contact me to explain more, and maybe I can help answer more questions.
Jennie, it's two weeks-plus later, and I'd be interested to know how you've made out. I'm hopeful that your employment verification issue has been handled appropriately. The lender who told you, in essence, to shut up, ought to be ousted from his position - that's outrageous behavior on his part.
Chris, if you've got news, share the wealth, please. It's worth it for someone to spill the beans in a case like this, for the edification of so many others.
Do you have specific research that shows the "big banks" being tardy in comparison with everyone else? I'm just curious.
Chris, if you've got news, share the wealth, please. It's worth it for someone to spill the beans in a case like this, for the edification of so many others.
Do you have specific research that shows the "big banks" being tardy in comparison with everyone else? I'm just curious.
Hi George,
Yes the proof is working with loan officers who work directly with real estate agents. Also on all the mortgage related blogs, you will see other brokers commenting on the process. Short sales, geez, thats another story. Some go quick, some are months long. Let me see if I can get you something concrete in writing that shows the processing times for Direct Lenders, versus Banks. FYI, when I was a broker, 2 weeks tops for closings. When you are dependent upon your closing this loan, you move it. At the bank, the volume is enormous and overwhelming for staff. For example, I believe it was wells fargo for foreclosure, just 2 months ago they doubled their processing staff, and each processor is to process 40 files a day. I think they have over 1,000 processors. Again, I will look for the news and post to you when I find.
Yes the proof is working with loan officers who work directly with real estate agents. Also on all the mortgage related blogs, you will see other brokers commenting on the process. Short sales, geez, thats another story. Some go quick, some are months long. Let me see if I can get you something concrete in writing that shows the processing times for Direct Lenders, versus Banks. FYI, when I was a broker, 2 weeks tops for closings. When you are dependent upon your closing this loan, you move it. At the bank, the volume is enormous and overwhelming for staff. For example, I believe it was wells fargo for foreclosure, just 2 months ago they doubled their processing staff, and each processor is to process 40 files a day. I think they have over 1,000 processors. Again, I will look for the news and post to you when I find.
Yes i have noted usually Large banks take much time to process the loans.
Thanks, Chris - it's not critical, but if you have data, it'd be interesting to see how it all shakes out.