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The BIG Old (cumbersome) Banks...

So perhaps 2 blog posts in a row about big lenders being bad is a bit much. But when I have clients completely Sc%$@*d by a bank - I tend to get a bit "annoyed".

After Bank of Everywhere - threw customer service out of the window and made my clients stay in a hotel for the weekend; I have stricken that bank from my list of "recommended lenders".

So I won't mention their exact name - because; while I have a very true story about their lack of service and overall incompetence - I am sure Bank of Everywhere would use some of their Tarp money to make a lonely blogger take down a post that hurt their already tarnished reputation.

You see; any good Real Estate Agent - has "recommended" lenders. We recommend them because they make our job easier through communication and customer service. In essence - they make our jobs easier and make our clients get to closing without monster headaches.

So when my favorite Bank-of-Everywhere Loan Officer completely dropped the ball (because the big behemoth of a bank can't deliver) - I went to another favorite loan officer with Big City bank. He is doing another loan for me and is doing a great job. I tell him - he is going on my "Top 3 List: of lenders".

Then he says to me,,,"Shhh - I am am leaving to Bank of Smallville". It seems that Big City bank is going the way of Bank of Everywhere. They will move their underwriters to a central place - which is sure to make things a giant MESS.

It seems that my New "Top 3" Loan Officers are with small - local (well-established) lenders. Sadly; there are some excellent Loan Officers out there - that won't get a hint of a referral from me - because their companies have decided to replace any semblance of customer service or meeting deadlines with a slow-moving; central system with little to no sense of speed of service.

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800 Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016

Posted by James Downing - REALTOR®,GRI, ABR - DC Real Estate on 06/05/2009 09:02 AM

Comments (25)

Bank of Everywhere - Service? What Service? in the Mortgage / Finance Channel

banks, lenders

Originally posted at: DC Real Estate News: The BIG Old (cumbersome) Banks...

This post has been included in District of Columbia Information

25 Comments on The BIG Old (cumbersome) Banks...

JUN

James, this is eloquent, hilarious and pitiful all at the same time! You get my 10 Wow rating.

JIM..I hear you..We in Philadelphia have had similar situations..Lucky for me..and my clients..my loan officer left before the situations got out of control..UMMM ..whats that line..There should be a law..Thanks

HelpfulHannah your friend in Philadelphia

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JUN

James

I am so with you buddy about banks. We work like dogs to get them together and people get them sometimes that don't have to same energy we do.

I feel your pain! Thanks for putting a delightful spin on a ridiculously horrible situation.

You are quite the word smith my friend ;) I agree entirely; with that said I have had some small banks mess up a loan just a easily as the big guys mostly due to lack of network. It is my belief keeping an eye on the banks is like herding cats and at times get frustrating, the best bet is to keep your cool and network only with the people that know what they are doing big or small.

Jim, well said and so true.

Personally I was banking with a smallville bank and just recently it was merged into a Bank of everywhere....now I am in search of another smallville bank, to move my personal and business accounts to.

You are becoming famous with all these features. I get so angy when the bank isn't ready to close on time because the underwriter didn't get it til the last minute and hasn't had time to review and then the underwriter finds something missing and has to have that and blah....blah....blah....we miss the closing date which means we have to sign extensions and either party can walk!

And people are afraid of the government taking over these institutions? There's no more bureacratic entity in existence than a large bank. Trying to get them to move on anything is worse than pulling teeth. And don't EVEN get me started on customer service! There is none. They may as well be a governement entity. They pass the duck test. Great post and best of luck.

When the credit crunch hit in 2007 I thought the big places were the right places to be... WRONG!!! they all came up with a phrase: "manafacturing quality" which means: How NOT to do a loan.

I am not back to my humble beginnings with a small Mortgage Banker, where the only thing we do is mortgages, and we Have to do them better than the big guy. It is all about service after all!

Well said. It's frustrating but it's our diligence in defense of our clients that seperates us from the others out there.

I agree with Patricia... "eloquent, hilarious and pitiful". This post gets the coveted EHP award.

I work with a lot of top wholesale lenders and if the customer service is no longer there, they no longer have my business. I believe in "do what you say, when you say it" and certain banks don't believe in that philosphy.

James - BRAVO! I'll second that motion. For many years, I often sent my files through big, national lenders. However, ever since those same big, national lenders received billions in tarp money, they have gone downhill (and fast) in customer service and loan pull-through.

In the past year, I have had quite a few client files get suspended by these same big, national banks that received tarp money. As of April, I have quit sending my files to these big, national banks that received tarp money and am now sending all of my files to smaller, local lenders who didn't receive tarp money - and they are funding with these small, local lenders that didn't receive tarp money with virtually no problems. The best part, their turn times are usually much better too.

At this point, it will take an act of God before I start sending my files back to those big, national banks that took tarp money who don't give a damn about me and my clients business. I'm perfectly happy to continue sending my files to those smaller, local lenders that appreciate me and my clients business.

I recently had the opportunity to use a bank of everywhere lender for a client of mine, and I refused. Sounds like I made the right decision.

I see this happening more and more...Realtors avoiding the big banks and going to local lenders to get the job done right, and within a reasonable time.

The problem with the BIG banks is that they lack communication to the loan officer. So as a loan officer we must force that communication. Even if it means sitting on hold for 2 hours until we get an answer. I have a reputation to uphold as a Mortgage professional, and I will NOT let it go down because of someone else.

James,

I am in the middle of a similar mess right now. The choice is clear. Stay small....stay local. Just the opposite of what it was before!

So much to know to keep the deals moving...and so much that we know is moving daily - what a challenge this loan market is!

James,

I think I'm dealing with your Bank of Everywhere right now (located in DC)! It's 4pm on Friday.... we're to close on Monday..... no loan committment YET!!!!!!!!!!!!!!!!!!!!

What gives???

I too am having the same headaches. I had a loan that was supposed to close on May 19th....after 3 canelled closings - I left a screaming message with the loan officer that the bank had LOST the privilige of finding just "one more piece of paper." The next closing date is Tuesday. If they don't have "everything" I say TOUGH!!! the file has been vetted several times - if the "problem" wasn't detected by now it can't be that important. If it is - they have to take ownership and responsibility for being so inept and get my clients CLOSED - with or without the paperwork!!! If not, the client is going to sue for time and expense in small claims. i'm hoping these jerks get THOUSANDS of suits like this.

Right now I've got well over $1million in transactions in escrow...most of which should have close several weeks ago. If they keep this up - the credit markets will freeze up again. I can't pay MY bills until I'm PAID! Wash, rinse and repeat for thousands of self-employed and commission only people - and you've got money locked up tighter than a drum when they need it the most.

What am I supposed to say at my next listing presentation? "Well Mr. & Mrs. Seller - I would LOVE to market your home, but I can't because I haven't seen a check in four months! "

With all the takeovers by some of the bigger banks they have created systems that totally throw customer service out the window. Many good loan officers have now been put into a bad situation as it's their reputations that are getting tarnished due to no fault of their own.

Its interesting - one person mentions loan comittments. I guess every place is different. The loan comittments are coming through - but getting from comittment to clearance to close is a nightmare. I've had four loan comittments for over a month now. they keep coming up with "Opps -so sorry we have one piece of paper missing - no closing today! But we will close in two days" Two days later "Opps, we didn't notice that we don't have this piece of paper - it takes three days for this to turn around - SORRY!" Three days later..."Sorry, we forgot this one last form that takes 2 days to turn around - we will close next week!"

There is NO EXCUSE for this. The banks made a comittment and like many a groom - they keep getting cold feet at the alter. Families are bottled up in hotels with children in tow - pets in kennels. This is very, very costly to me and my clients. Eventually people are going to start suing for the expense.

I have huge problems with bank of everywhere and cringe when I see they are a lender on one of my short sales. I know it's gonna be a long and frustrating road to travel.

JUN

It's a shame and, I fear, only going to get worse. The sad part is that good loan officers that work for lending institutions that can perform and execute also have "Mom and Pop" sounding names like Bank of Smallville. As a listing agent,who wants to take a chance on whether the Bank of Smallville is really able to close the loan. It's a real tightrope.

I just had 2 nightmare closings with that same bank! I will never recommend them.

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