UPDATE : Some of you might have seen this about a week ago, when I posted this. I am posting it again, because I had several issues that I had to take care of and couldn't reply to the comments. And I also wanted this to be seen again and not lost, considering that I think this is an Extremely Important topic.

I will copy the prior comments.  Thanks again.... 

Has anyone ever taken any of these steps before?  What do you do when this happens to you or your client?

I think the secret to avoiding these things from happening is by starting with a referral.  Ask your Realtor who they have worked with and what was their experiences.  Find a loan officer with a funding lender who is not part time or new to the business.

Jeff I do have a confession... I have...and if felt sOOOOoooooo good.  I could not take those fax blasts anymore.  You know the one saying 1% mortgage.  I called the number and spoke to the person.  I asked him how could they offer such a low rate.  He informed me that yes 1% is a true mortgage.  I asked him if he was a lender or mortgage company.  He then informed me that neither he was a marketing company and he would have a loan officer contact me.  So again I asked him to be clear that they are faxing rates and they are not a lender or a mortgage company. Once again he said.  In Florida the law is very clear on lenders or mortgage companies can advertise rate, payment or term.  I called the state and spoke to the compliance department.  They where very interested in the fax.  You know what the best part was?  I never received that fax again.

I have a "go to" guy (loan officer) that has his package to the title company days before closing - every time .  I think he's all that and a bag of chips.  I had to kiss a lot of frogs before I found that prince, though!

Randy.....  I totally agree. I did a post on this several weeks ago, in regards to approvals and such. I had written that you should first ask friends, family, or your realtor for those that they trust and work with. This then would eliminate half of these problems without a doubt. Thanks for your feedback.

Matthew...  great example. Thanks for sharing this. It's so easy to just sit back and let things happen over and over and over again. Once you start taking a stance or calling people, or making a complaint.... your efforts might pay off.  Thanks for sharing this.

Chris....  I agree, sometimes it takes a long time to get to the point that you are. That's awesome. But what about those that go through what I wrote about?  Should one complain? File a complaint?  Take the time to do this?  Have you had to do this, even if it wasn't mortgage related?  For anything....  thanks for stopping by. 

Point taken, I have never complained higher than the manager. But, honestly never gotten anywhere. It really never happens with our local lenders that know us and want future business, only those internet lenders that promise one thing and then change it right before closing.

My worst was a Physician moving here for her residency. She literally walked in with cash from her wedding, because the lender was 30 days late and raised her rate and she had to bring more.

I am bookmarking this and sending out to my office. Thanks

Jeff - I flagged this post.  We have had several posts on this subject in the last week from frustrated Realtors including myself.  This one is extremely helpful especially coming from the eyes of a mortgage professional.  I can always depend on you to give us that perspective.

Thanks Jeff - this is great information.  It is so true that most of us will exert a little effort to complain and then give up.  I plan on bookmarking this for future reference because I know it will happen again. 

Kris Burgess

Missy.....    sure, I can understand that it might not happen as much with local lenders. But I still see it happen. I did about 5 transactions last year just in New Jersey alone that went south, bad....right up until closing or at closing. And these lenders couldn't make it happen. I was able to close each one. And a few of them were extremely hard. A few of the loan officers had made promises not even god could have gotten done, under the program that they promised. This is when the client and sometimes the realtor should rise to the occasion per se and let that persons manager know about the issue at hand. And if anything, report them to the state or BBB if it was that bad. Thanks for the compliment and for stopping by.

Randy.... thanks a lot. But from what Collen Kulikowski said about a week ago, that the flagging system hasn't worked in about 2 months.  Overall, thanks for your compliments.

Kris.....  As I have mentioned, there could have been times in my life that I reported someone for something. But I guess it depends on the severity of the situation and or problem. And sure, that question popping into your head...my one complaint won't make a difference. But it can...And yes, it does take a little effort at times. Thanks for stopping by and for that compliment. 

Jeff was this post removed from the professional category and if so why?

Jeff,

Hopefully, I will not have to deal with this issue anytime soon, but you are right in that rolling over and playing dead probably isn't the best way to go.  I would definitely complain to a lenders higher-up if I felt they intentionally led me or my client astray.

Fran

Part of the problem here is that the only person we get to talk to is the lo. The processor and underwriter are kept in isolation by many lenders. In Arizona we have a contract that requires the buyer to direct the lender to keep in contact with Loan Status Reports (LSU). Trouble is, many lenders do not process locally. In calling a processor, when I can get one, they say "We don't do that". The arrogance continues. People from one MAJOR bank hate coming into my office when I am there because I keep blasting them. They aren't the worst, just the ones brave enought to drop by.

Good info I have filed a complaint before on another realtor that was breaking the law.

Jeff,

Great post and I wish people would take action if they do not like the service.  I for one welcome feedback, both positive and negative, as this is the only "real" way to know if I am doing a good job or find areas where improvement can be made.

Hmmm.....I'm one of those that will call the underwriter and processor who is working on the loan if I can't get ahold of lo.  I go to the boss...if I have to.  I make sure the job gets done.  I also call the escrow officer to follow up on title reports etc...and utilize escrow if the other agent is not getting needed docs in.  Sometimes, we can't depend on the other agent, the lo or even escrow officer to do their job meticulously as I...oops, .....WE do.  So instead of waiting around I get cracking.  The loan process is most definitely the most crucial part of the transaction...and I still think we all need to have "overseers" ...hahahaha.

Jeff,

Good post.  Not enough people complain to the right people and that's why there are still so many scam artists out there.  I have met so many clients with stories that blow my mind, but they never did anything about it. 

Jeff I have only had one loan officer I wanted to do something like this to and I have never had to deal with him again.  I can say that if a buyer came to me with a letter from him I would tell my buyer to fire him and find a better lender.  Thanks for being so upfront with how to deal with some of these issues. 

But I truly feel that a lot of these issues are a break down in communication - with proper communication most issues are able to be solved or at least understood.

Fran..... well, you are lucky, from what I have heard from other realtors. And this is a growing concern of mine because I see so many borrowers and realtors walk away from the issue, thinking that they can't change anything by complaining. 

Jim.....   even though you think the problem is because you can only talk to the loan officer, this shouldn't be the case. You can call the company and ask the receptionist to direct you to a manager or someone in charge. You just need to ask around.

In regards to Arizona and many of these lenders not doing what is requested. Put this back on the borrower then.  Make it their responsibility to get the lender involved.  Thanks for your input & feedback.

Jeff F. ........... thanks for stopping by and for the compliment.

Robert..... I totally agree. How am I suppose to know if you weren't pleased with my services, if you didn't say anything to me. If you don't want to call me, put it in an e-mail.

And yes, I think more people would need to stand up and complain if they weren't happy.... within reason.  I think this was as much as a problem than the HIGH LTV loan programs that everyone complained about. By complaining could curb some lenders and loan officers...    at least making them think about their actions. 

Sally.....  you make some great points. I don't think a realtor needs to stay on top of it 100%... but at least make that loan officer aware that you mean business. 

Olan....  thanks for the compliment.  I agree, as stated above, that not many people complain and they should. Even if it takes an hour. It could curb some of the issues that we have now. I have had only one complain to the BBB in 14 years....  and it was a bogus complaint... lol   Long story...  thanks for your feedback.

Thesa.... I agree... many of these issues are a breakdown in communication. But also... lack of communication. I have seen some loan officer's hide from negative phone calls. This is where it starts...

Jennifer.....  WELL SAID>>.. your very last sentence...  "I feel that if you remain silent, you are no better than the person you are grumbling about under your breath."   And Thanks for the polite compliment.

Ken.... my pleasure... I am glad that I could help. That is one reason why I reposted this again. It was kind of missed before.

Sherri.... hate to disagree, but I wouldn't call the lender a predatory lender if it was one loan officer that acted this way and treated all their clients like this. Sure, I have seen companies operate like this. But we can't always judge a company based on just one individual. Just my opinion. And thanks for the kind words.

Lania...... yes, unforseeable circumstances can happen. I am glad that you realize this. Some people don't. What gets me ticked our those that hide from the problems and you her realtors and clients complain because they leave message after message after message,,,, and the L.O. doesn't call back.... until you threaten a manager. 

In regards to your last few comments... that's good that you are strict, which heads off or eliminates these problems. But problems occur and some people do just run away from them. Thanks for your input and feedback. 

Mark.....  you make some great points.... but I have one thing for you.....   how do you fill out your interest per diem section?  I have always, from almost day one, put at least 15 days in this section. If you had done that, they would not have been short because of this. Curious.... how much were they off?   Thanks for your feedback...

Neal.....  I would file something or call his manager. Just because he didn't get the job done and for the fact he seems to think that you are questioning him, doesn't mean he should get all bent out of shape. From talking to you and reading your one post, he was lacking in the communication department.  I say, wake him up. Have him have to answer to a BBB complaint. Again, from your post and comments and the storyline, I would say he was at fault for this mess. And that he wasn't honest at all....  thanks for stopping by.

Thesa....   I totally agree, the biggest issue on hand are those that hate giving bad news and just wait to the end.  I learned from my own personally life and growing, to give the news as soon as possible. People will respect you for it... especially when you can find a solution.

Read this when you get a chance : A conversation I just had with an underwriter

Mark?  aka Jeff   Not sure if this is Mark or Jeff... or someone else.  I can only assume that it's you, because your comment is a continuation of my feedback from the previous comment.

In any case.... if you have been in this business long enough, you should know for the most part, that many people don't listen and or remember the true details, especially that of the interest per diem. So, you are going to be off anywhere from $500 to $1,200 depending on the loan amount?  If one would get creative, there are ways around this. ....

Take the good faith estimate and circle the interest per diem section in yellow or better yet, RED.  And tell them or even write it down next to what number is already in there. If you were estimating exactly from the date of closing, then to the side of it, put 15 days of interest. Or vise versa.... I would do it the 2nd way. I ALWAYS put 15 days and just tell them and write it in red... if you close sooner, less money. Too me... in Mark's case, there had to be something off than just the interest per diem. That's my opinion.

But as you stated, communication.  And yes, telling the client the bad news earlier than later is a step in the right direction. But with so many, especially those out of state and not near the transaction, many don't care about this and just let it ride.  thanks for your input.

Mark...  thanks for sharing that and for stopping by. Sure, it's tough because even when they say they listed or understand, they can pull the "I didn't know attitude"....   so if I make copies and have them initial and or sign stuff, at least I can say this initialed it.  That saved me once because the clients swore that I didn't tell them that it was a 45 year sub prime deal and that they wanted a 30 yr. I had it in my notes that we talked about it. I told them that they wouldn't keep this mortgage for 45 years and even 30 yrs, that their goal should be the cheapest payment. Besides, they didn't qualify for a 30 yr and I even told them that. Well, I had them initial each page of the 1003 and it had the term on there. In this business you just have to cross your "t's" and dot you "i's"....  thanks again...

Joan.....yes you are fortunate. But even if you came across this because your client picked their own mortgage company. And you got the run around for a week. Better yet, you leave the loan officer messages for 2 to 3 days and a few e-mails, but you hear nothing. Unless there was a family emergency, there is not excuse for this. 

Chris.....  I am sure we all have been there. But the question would be, how many of us have ever done something about it?  And yes, I hate cleaning up someone else's messes.....   I have had to do that for a few title companies before.

Allison....  thanks for those kind words. Yes, I would figure that this is a very important topic and should have received more attention. I believe this was sometimes more of a problem than just the loan programs themselves. Because then people were forced into certain loans.  Thanks again for stopping by and for your comments. 

Karen.....  Yes, I think more people need to complain and not to us or others that don't really matter, but to those that can do something about.  And thanks for that polite compliment.

Keith.....  you are correct, communication would resolve many of these problems. But there might not have been a problem if that loan officer was truthful in regards to the program that they promised. As you said, under promise and over deliver....    thanks for sharing this...

Sally..... I think a realtor should only have to do so much. But then again, that's only if the loan officer was good at first....  very good with communication and follow up.  thanks

Rich.....  I liked some of your personal rules. ANd you use a great example of how to pursue a concern that you had as a consumer. Thanks for sharing this. Again, more people need to do this for anything that comes across their lives as we have presented.  And thanks for your very polite compliment.

Dominick.....  that's great that you don't duck people, avoiding them. And you make some very good points and using some good examples when it comes to overquoting.... not over promising.

But I have a concern, when you mention an AE or UW passes you along bad information. This is not pointed at you... but we need to know these programs inside and out then.  And deal with a very good AE and lender if you aren't underwriting these loans yourself.  Thanks for your input and feedback. And also thank you for your compliment.

This is what Lisa said in this same post.....

Jeff, You recently commented on my blog Watch what you say, which is a case such as this. I totally agree that if the situation calls for it, people should make a formal complaint. I think it doesn't really matter what profession your in. We all have a code of ethics and there are always a few who don't practice very ethically. The only way to change that is to speak up. Thanks for linking your blog. You are absolutely right.

Lisa....   I just think more situations have called for it with less people taking charge and doing this. I agree, it doesn't matter what profession that you are in, people should stand up and bring it to someone's attention. I don't call this complaining.

Thanks for your feedback and for you input.