Here is my story about a loose cannon mortgage rep..... In a transaction that closed last week, we had a really bad mortgage guy who thought he was God. And, because he had so much control my clients and I tried not to make any waves when we were half way there and experiencing horrific customer service issues. The more we questioned this guy during the process the worse he was becomming and we were concerned that he would be vindictive - he was the guy pushing all the buttons. So, we didn't want to rock the boat because the buyers were living in a hotel room for the last few weeks waiting for a mortgage to be processed, and this guy was on a power trip. After closing we'd write a letter.
Well, we all know to be careful in how we communicate through email. ...Don't we? In putting a complaint letter together for my clients, I went through the emails this clown had sent. In chronological order:
Hi Carol: On vacation, so I need to be short and sweet...1.3 years self-employed, 0 their own money...53% debt ratio ...they don't qualify for the home...if they want to try with a new lender, I encourage them to get a commitment letter without paying much money... I can work on arm products, temp buydowns, etc when i get back...but to be blunt, the borrower needs to save more money for me to consider this a responsible deal...
A few days later he changed his tune once he heard that other lenders made it sound promising and would earn the business. My client also cleared up some non-issues that had been reported incorrectly and they also had gift money to put down. As we went forward with this mortgage rep, I emailed him back a few days later -
Me: How's it looking? - We started growing very nervous over this.
His Reply: Why? I tentatively got her approved with a 56% debt to income but I just want to confirm what income we are using...I did 5% with 2 pts on an fha 5-1 arm.
The next day my client emails him: Do you have the contact info for the person who is processing our loan? I think her name is Sue. Also, interest rates went down today I've been told by other lenders. Despite this, the mortgage rate monitor alert on your website continues to read 6.5%. Why is this?
He replies: I'm confused by this and I need you to call me immediately on my cell phone. You are locked in, and to be blunt this is the second time either you or Carol have inferred that you are still talking with other lenders. It is impossibly busy and your loan will take a huge amount of work and exceptions to get done. If you'd like, I can refund your money and we can part ways on friendly terms but I find it hurtful that after giving you a good rate and putting in extra effort to make your loan work, this type of thing keeps getting put in my face.
I almost had a heart attack, but recovered quickly to shoot off this email: I'd like to comment on this - We needed to reach out to other lenders last week when you were on vacation and others from your office would not assist with this file. We needed an updated pre-approval letter last Monday but were told by those covering for you that one could not be provided for 3 days. We did not have 3 days to wait. As it was, the other buyer who the relocation company released from contracts on Monday got their commitment letter on Thursday. That's how close we would have cut it.
So, I suggested that the buyer reach out to one of the runners up - which I have no affiliation with at all but had a preapproval letter in my file with the reps name. He was able to deliver what we needed the same day. At my urging, She stuck it out waiting for you to return even when it seemed that those at your office who were supposedly covering did not want to service this file. At the same time you hinted that they did not qualify for the loan. A few days later you were sending us different signals and had a more positive outlook.
I can't begin to tell you what an emotional roller coaster my client was on last week because 1) you were not available to assist or assess the situation. And, understandably everybody needs a vacation - but ... 2) nobody in your office could assist her. 3) You sent off a negative response stating that they do not qualify for the loan and as her agent I shared that with her 4) you suddenly became more positive about the situation 2 days later and insisted it could all work out after all.
Now, what would any buyer in this situation have done? And,, what would any mortgage rep do (who was contacted last week by the buyer and knows he's competing for the business)? OK, she need not shop around any longer! But, I think it's pretty obvious and understandable another lender is seeking her out. And, so she advises you that interest rates went down - because other lenders told her. Should we be surprised by this? I don't think you should take this so personally.
His reply: Things have not gone well for us from the start, you are John Smith's business partner and I respect John completely. This has been a challenging deal right from the start, compounded by the fact that I don't think the two of us mesh well. I will try my hardest to get her into the home, but I don't feel that it was proper for you to suggest she call another lender after not getting a response for 3 days. I've heard nothing but good things about you in the real estate community but I just think we got off to a poor start and things have gone down hill from there.
I tried to help you from my hotel room in Vero Beach including 3 calls and 3 texts and drove to my office on Sunday night after my flight returned. I've gone to my boss's boss to get an exception. ...I feel as though your expectation level on this loan is unrealistic (Please don't be offended at that, again sometimes two good-hearted people don't work out business-wise).
I reply: BTW, None of the lenders she has talked to are ones I referred. The only one I referred that she actually followed up with was John Smith who referred her to you. I thought it might be worth mentioning that I have no alliances with anybody she was initially consulting with - other than getting a same day pre-approval last week by whoever would provide that service. I have been suggesting that she stay on track with your company. Why would we want to venture off coarse this late in the game? She is homeless come 12/13 ...with a baby ...and pregnant with a 2nd. - Just the pregnancy factor alone is one reason why we need to make this as stress -free as possible. I find that your email to her was a little harsh. You assumed she was still shopping. Perhaps you should take the time to read her inquiry over again - it was just a simple and innocent inquiry.
His reply: Again, we could go back and forth on this all night. I DO empathize with her plight....I close over 120 loans a year and never spend as much time on one loan as I've had to on this loan (and it's not even done yet) because I want her to get into the home. That being said, she should have been properly pre-qualified/ more straight-forward regarding her income with whoever she initially started this process with. If I had to do it over again, I would have worded it more professionally. I don't like being questioned regarding rate, especially considering rates are irrelevant in this case, but I certainly shouldn't have been as strong in my tone.
After that we needed to put our opinions about the situation aside and focus.
10 days later he sends me an email: If the appraisal gets done and submitted this week and the loan gets a commitment by the 4th of Dec. that would give us 2 full weeks to clear conditions, get homeowners etc to close them on the 19th. How does that sound? (but, we did not close until 12/31 and even that was a push - buyer paid $100 per night for hotel and add the cost of storage - homeless for the Christmas holiday).
As my clients began moving from their rental I contact him: We would like a date. They have asked to move their items into the garage of the house and are living in a tiny hotel room. But relo won't allow it pre-occupancy (not even to store household items in the garage). The other agent said relo is calling him for a closing date. We are ALL getting pressure. The seller is asking for a closing date, the buyer is asking for a closing date, and frankly we are all ready to put this to rest before the holiday.
His reply: Understood, but remember...one week ago we didn't even have a commitment letter and I told everybody to expect January... (see previous email above - we were shooting for 12/19).
My Reply: Yes, I understand. But we have all wondered why it would take 3 weeks after a commitment letter to have a closing. Maybe you can educate me - is this due to FHA?
His Reply: Sorry, can't debate today, insane refi volume...we will get it done before Christmas (who's debating? - I was just wanting him to educate me, if he just said "YES, becuase of FHA" ...but he didn't)
Attorney's assistant emails him because by now they were advised of this guy's attitude and our clients are homeless, it's almost Christmas and so they have teamed up with me in trying to push for clearance to close which was based on going from conditional commitment to full commitment: Any updates on the loan commitment? Do we think it'll be issued today?
His reply: No more emails on this, please... Everyone is working hard on this deal, this is counter-productive for me...Didn't mean this to be abrupt or rude, but I can't get 10 calls a day on this file...
Attorney's assistant forwards me the above with her comments: Hi Carol, This is my latest correspondence with the mortgage rep on this deal. Mind you, that this was my second email to him today.... I do not know how he does business this way. If the rest of us did we would have no clients. I am really put off by this. Sarah
In finishing this post, I'd say Sarah summed it up rather well!
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