OK this is a topic I would like to have as many of you contribute because I have heard a lot of stories but let us get them in writing because then maybe Banco could get its act together.
I had two personal experiences with Banco that caused me to lose any confidence in its staff and product.
Since with AHM the maximum down payment was 18.01% - I had to refer (without a fee) two clients to Banco because they wanted to put down more then 20%.
They were both given a pre-qualification letter by Banco. So while the borrower was faxing documents to Banco these two clients went looking for homes. As normal procedures - offers were made and contracts negotiated. And while the Realtor prepared inspections and the borrower prepared to move - Banco was processing these loans.
Well in both cases - when the closing got about 2 week away - Banco sent a denial letter. Now, I had prepped my clients for the process. I knew that they had all their ducks in order, all their "T" crossed and all their "i" dotted.
So what was the big mess - they forgot to tell me and the borrower - that the ITIN had to appear on the W2s. Therefore they considered this a fraudulent application. YES, that is right - a fraudulent application.
One of my clients had to retain an attorney in order to negotiate the return of his scrupulous - low commission - discount Realtors in our community - because the seller found out from the buyers agent that the borrower had used the ITIN to apply for the loan. So this discount Realtor - that is to suppose to HELP U - helped themselves to 50% of a $5,000 earnest money (well they probably gave it to their seller - which was one of their listings).
So when I called Banco about this situation - they told me that if this case were to go to court - Banco will have to state that this loan was being acquired fraudulently by the borrower.
So this is my Banco story...give us your stories.
Here is another scoop on Banco - I don't know if you are aware of it but Banco has different guidelines for different communities. This is because in some pre-selected regions they are attempting to adopt the MGIC guidelines. But once again - I have not been able to confirm this because as LO and Realtors - we have not been talking much about the inside track of these lenders.
So let us hear from you.
HHHmm, that's interesting because I've ben told numerous time by Banco reps that they don't care if the borrowers used Social Security Numbers in the past for work or tax filing. I know MANY of our closed Banco loans has Social Security Numbers on some docs....I wonder if they have changed their guidelines again...like changes in wind directions.
Sean Allen