Excuse me BofA! You CAN NOT have it both ways!

Mortgage and Lending with V.I.P. Mortgage

Bank of AmericaExcuse me BofA! You CAN NOT have it both ways!

 I refinanced a loan this week for some past clients.  I did their purchase loan in 2005.  We did an 80-15-5 because they had another home that had not closed yet.  The 15% second was a home equity line of credit.  Their previous home sold and they paid off the 15% second in March of 2006.  They never drew another dime on the equity line.


June 2008: 
They received a letter from Countrywide telling them their 0 balance equity line was frozen.  They were not allowed to take any draws on the line because the value had decreased.  No problem for them.  They weren't using the line anyway.

Like lots of other people, the equity in their home has evaporated but current rates are still better than what they had on their first so we put together a Freddie Relief refinance - a great deal for them.  We are able to drop their payment $200+ per month and because they didn't have PMI on the original loan, there is no PMI on the refinance even though their LTV is now 95%.

October 2009:
Bank of America (aka Countrywide) rears its ugly head!  There had never been a Deed of Release recorded for the "no longer usable" home equity line of credit.  The title company received a notice from BofA that there would be a $350 Early Termination Fee in order to do the Deed of Release.  Early Termination Fee?  On a line of credit they were no longer allowed to use? 

Really??  This Early Termination Fee showing on the HUD1 would prevent them from completing the Freddie Relief refinance.

My client took BofA the statement from March 1996 showing where they had paid it off.  She took them the letter from June 2008 saying they no longer had a home equity line of credit.  She took them the statement showing the $350 Early Termination Fee.  She asked them how in the world they could expect an Early Termination Fee when they were the ones who terminated the line.  BofA's response - "We didn't close the line.  We just won't let you use it." My client spent over an hour discussing this with the Wizards of BofA.  At one point they actually told her "if you do your refinance with us we may consider waiving the fee". 

Really??  My client told the Wizards of BofA "either this fee gets waived and you allow the title company to record a Deed of Release or I will go to the Attorney General and see what they think!  You CAN NOT have it both ways!  I didn't terminate the equity line - you did." 

Guess what?  She got it!  Refinance paperwork is all signed - we will record and fund on Monday.

BofA - what are you thinking?  How many other people are you pulling this stunt on?


Posted by

Jane Penttinen, Sr. Loan Officer
NMLS #222178
Sunstreet Mortgage, LLC

Jane Penttinen (Sunstreet Mortgage, LLC - Sr. Loan Officer): Loan Officer in Tucson, AZ 

If you, your friends or family require the services of a mortgage professional, please don't hesitate to call me.  I am never too busy for any of your referrals.


Comments (103)

Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Jane, I would say I am surprised...but nothing I hear about banks anymore surprises me.

I am so glad your clients were strong and did what they did. Honestly how many buyers would have just paid it and been done with it.

Or not fought for their rights NOT to pay a fee that was placed on them.


Nov 07, 2009 12:23 PM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL

Jane - This is one I have not heard before, but it doesn't surprise me in the slightest.  I'm glad your client fought and got her way.

Nov 07, 2009 12:39 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Real simple:

Pay the fee..... Then call me and I will come over and help the client break $350 worth of windows out of their place of business.

Look.... It is Saturday night..... So I am almost serious.  ;-)

The bottom line?



It was a great marriage!!!!!!!!!!!


Nov 07, 2009 01:00 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

There is nothing really surprising any more in the market it seems.

Nov 07, 2009 01:30 PM
Patrick Harfst
Realty Executives - Phoenix AZ - Gilbert, AZ

I get promo stuff from BofA regularly. Goes straight to the trash, because of just this type of behavior. this is not new for these guys...

Nov 07, 2009 05:42 PM
Paul Guenther
Empire Title Agency - Chandler, AZ
The Extra Mile Is Part Of My Regular Route!


 i signed some people 2 weeks ago that were strong armed by B of A as well.  Those people at B of A are messed up!

Nov 07, 2009 10:49 PM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Missy - Thanks for commenting.  I am really glad too.

Michelle - Be on the look out for this.  It's starting to happen a lot.  You may be able to help a client stand up against something like this.

Tom - LOL!  I guess that's why they say "Don't mess with Texas!"

Bob & Carolin - Isn't it sad that we are not surprised any more?

Patrick - how about if you mail back their business reply envelopes so they have to pay the postage?

Paul - let's work to get the word out that they can get the fee waived if they push hard enough.

Nov 07, 2009 11:36 PM
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ

Hi Jane~  BofA is just digging themselves a larger hole to get out of....I know so many people that are moving their money to local credit unions and saying NO to the giant!!  Every division of their bank is in disarray!  Thanks for sharing!!  All the best!

Nov 08, 2009 01:01 AM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Dedra - I sincerely hope your client is able to work out their issues with BofA.  I didn't hurt when we threatened them with the attorney general.

Stephen - BofA is indeed digging a very deep hole - and all because of nasty, greedy, unfair business practices.

Nov 08, 2009 01:53 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Jane, I think you took my comment the wrong way. You and I can do nothing legally to challenge the position of BofA.  The client could and can.  We can jump up and down yelling a screaming, we can write blogs such as yours and comments such as mine but your blog and my comments don't mean a rats a$$ to anyone in a postion of power.

Somehow we  have to get those affected to rise up and take legal action...that is the only way that they will listen.  BofA wins when only a few protest and no one ever takes it to court.

Nov 08, 2009 10:41 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It sounds like your clients are going to be fortunate enough to get a good result.  It's nice to hear stories where things work out.

Nov 08, 2009 02:31 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


Good morning!  Looks like this is headed for 100 plus comments, and AR has run out of ReBlog Buttons for you.  Next, we're going to see you interviewed on the Channel 4 evening news!  :)

Mike in Tucson

Nov 08, 2009 11:46 PM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Damon -  thanks for commenting again.  You are correct.  People with "power" need to step up and do something about this.  But we can do things to make sure the people in power are aware.  I am planning to contact the AZ Attorney General and my state legislators to see if we can't get something done in the state of Arizona.

Christine - thank you for taking the time to comment.

Janet - doesn't make any sense does it?  The thought process from places like BofA defies and logic.

Mike - never knew AR had a limit on ReBlogs - still learning.

Nov 09, 2009 12:29 AM
Debbie Walsh
Shahar Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Jane-congrats on another feature!  Glad to see it all worked out for your client.  The way things are with banks these days nothing surprises me. 


Nov 09, 2009 10:13 AM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Debra - Thanks for taking the time to stop by.

Nov 09, 2009 10:23 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

I would recommend editing or deleting the comment by Janet Fuller above.  The last sentence could land some people in an anti-trust situation.  JMO

Nov 10, 2009 07:11 AM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Damon - thanks for your comment.  I didn't even notice that last line.

Nov 10, 2009 09:06 AM
Patrick Randles
Nova Home Loans - Tucson, AZ

But I hear B of A is recruiting (and hiring) good loan officers...based on the "we can beat your rates" argument. Don't you want to go work for them?

Nov 11, 2009 01:12 AM
Jane Penttinen
V.I.P. Mortgage - Tucson, AZ
NMLS #222178

Patrick - Not in this lifetime! :)  Surely, you jest!

Nov 11, 2009 03:00 AM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

This is a real shame and I knew how down and dirty they were after I MBNA closed down, they gobbled up MBNA bank and luckily for me I was leaving to get into real estate 3 years ago.  I couldn't stand what they were doing to customers.  Their policies are driving consumers and real estate agents crazy.

Thanks for the story... If it was something crazy it would be from that bank.

Dec 14, 2009 03:52 PM