I don't like to vent, but every once in a while I feel the need! I closed a PURCHASE on Thursday last week. What should have been a great experience for the buyer (my borrower) turned out to be extremely frustrating for him. Let me set the stage for you. But before I do, I want to let all the LENDERS and LENDER REPS and EMPLOYEES (AE'S, UW'S) that I am not lumping you all in this. I understand that errors happen daily ( I spent 25 years at a major bank--I understand that stuff happens). BUT, and I can't state this emphatically enough, IT'S HOW ERRORS ARE HANDLED THAT MAKE THE DIFFERENCE.

We received clear to close and the HUD statement was approved by BANK attorney and BY BANK. Documents were delivered to close. The papers were signed and when the attorney's went to record and to accept wire, wire amount was over $1000 less than it should have been. The Lender's post closing and funding area showed the loan amount to be less than the loan amount approved and written on closing documents and approved on the HUD. So, the documents were never recorded and the buyer COULD NOT GET THE KEYS TO HIS NEW HOME. HOW COULD THIS HAPPEN WE ASKED? So, the quest for the answer began. What happened next was, in my opinion, a case of NO ONE WANTING TO ACCEPT RESPONSIBILITY AND TO MAKE A DECISION THAT WOULD HAVE CREATED GOOD FAITH BETWEEN THE LENDER AND BORROWER AND BETWEEN MYSELF AND THE LENDER. I'm seeing more and more instances in today's service related industries where managers/supervisors pass the buck. Even upon escalation, those in supposed positions of authority and RESPONSIBILITY are too afraid to accept the responsibility to make a decision that would be the right thing to do.

It turned out, that even with safeguards in place after a file is APPROVED/CLEARED TO CLOSE, another part of the process had the ability to CHANGE THE LOAN AMOUNT and complicate what should have been a simple closing process. I am told that the post closing review looked at the HUD and saw a tax amount that they mistook for a buyer rebate instead of buyer obligation, and challenged the statutory cash requirement on the buyers part. So, instead of this being challenged before the APPROVAL AND CLEAR TO CLOSE, AND ACTUAL CLOSING, some secondary approver MISTOOK THE FIGURE AND WAS ABLE TO CHANGE THE LOAN AMOUNT AND HUD DOCUMENT thus lowering the wire sent and voiding the ability to consummate the purchase due to lack of funds.

THE LENDER ACKNOWLEDGED THE ERROR, but said they had no idea how it could have happened. We were all told that this was not possible for the system to now send the difference in the required funds. Now, we all know that no system exists that can't be manually altered. So, instead of just doing the right thing, AND WIRING THE DIFFERENCE TO CLOSE THE DEAL and DO THE INTERNAL INVESTIGATING ON THEIR OWN TIME, the situation was passed up the chain and to the IT department who took until after close of business Friday to make the system change. Supposedly it took special dispensation from some Senior VP(OR THE POPE, I'M NOT SURE) to authorize the IT department to make the change.

I'm sorry but I strongly feel that when this error was noticed, the funds should have been wired in order to protect the contractual obligation that the closing posed. Instead, my client wasted MUCH TIME AND AGGRAVATION, as he was unable to actually move into his home. He is now faced with taking additional time from work in order to begin moving. The difference in amounts is being wired today (too late on Friday as the IT Dept. wasn't involved quickly enough to resolve issue before FED WIRE closed.)

So, again while I understand that STUFF happens, an organization's ability to accept responsibility and to make immediate decisions that demonstrate ownership and good faith COULD HAVE MADE THIS SITUATION MUST DIFFERENT THAT IT TURNED OUT. IT WILL TAKE A LOT TO RESTORE MY CLIENT'S FAITH IN THIS LENDER. I can only hope that this has not soured his opinion of me and thus my reputation. He was a referral to me, and I know that he had an opportunity to refer to me as well. I know that he sees that is was a situation beyond my control, but I also know that just being linked to a bad experience is not good for any of us. We survive on referrals and it it only takes THAT ONE BAD APPLE who doesn't see SERVICE as the driving force behind success, to undermine our efforts.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO.