RESPA or Just Plain R.E.S.P.E.C.T. - Part III, The Beat Goes On!

Real Estate Agent with Realty Executives, Tucson Elite
So, when we last left our suspense-filled story, our "Loan Counselor" had yet to "counsel" my clients and the clients, still clinging on to the advertised and contracted "incentive" from the Builder's Lender to cover up to $4500 towards closing costs, waited patiently to hear how great news from this busy executive, might change their lives.

We reflect back to the contract date of February 28th (a Sunny Arizona Thursday) and the following day when the clients submitted their application to the Lender, from whom the response,

"Thank you for visiting __________________ to start your loan application. Your information has been received and your confirmation number is: XXXXXXXXXX.

A member from your own ______________ team will be contacting you within one business day to schedule your appointment with your Loan Counselor to review and complete your loan application in order to discover the best financing options available for your individual needs.",

was so kindly provided, only as a good reference point when reminding the reader that we pick up the story a full 7 days later. Well, Thursday came, and market (stocks & bonds folks...with an emphasis on bonds!) market volatility reminiscent of a roller coaster at <insert your favorite theme park here> continued...and yet again, without contact from the "Loan Counselor". I had placed a call into the site sales agent to inform her that we still had not heard from the Loan, I'm sorry that slipped, I mean, Counselor.

By noon, I began to become even more frustrated, as I had not heard back from anyone and my client was asking me what I thought of the lack of response. <insert thought bubble here reading "Incompetence?"> I really felt that I could hear the impending screams, as I just knew what was about to happen once we did finally get a response from the Loan Counselor. Still holding hope and with a iron-clad grasp on that "incentive" towards closing costs, my client, believing that his worse case scenario was simply the GFE that was provided to him the week prior, would still be able to be honored, he said that he was willing to wait until later that afternoon to hear back. *sigh*

2:51 PM, you guessed it, the "Loan Counselor", I mean, emails! You ready for this...

"Attached is the GFE from __________________, I can not come very close to the rate you're getting from _____________.  On the GFE that's attached I bought down as far as the incentive would let me and keeping your out of pocket cost to a minimum, about $____.  I also cut the origination fee from _% to_% to try and help.

I would suggest you lock in with ____________ today if they can in fact give you that rate.  Let me know if you have any questions or concerns and who you decide to move forward with.

Thank you,

<insert expletive here>"

Huh? Wha? Yes, that's right my new blogging fans, the "Loan Counselor" provides a GFE with an associated interest rate of 5.75% (after a 4 point "buy down"). Anyone surprised at this point??? Awwww...really? Ok, not to disappoint...this gets better! <cheesy organ music begins to play in background>

Tune in tomorrow when the client says..."What the fluffity, fluff, flluf,..." and the "Loan Professional" says...


Comments (3)

Susan Davis
Austin, TX
Excellence Advocate

Hey.... are sure this is just a rerun of some show we have already seen???!!!! <inserting belly rolling laugh>

To your success,


Mar 11, 2008 04:42 PM
Victoria Grammar
RE/MAX All Executives - Oro Valley, AZ
ABR, Associate Broker

You are quite the writer. Sitting directly behind you and listening to the nonsense you have to deal with, with this builder/loan company blows me away and is just ridiculous. Obviously this lender won't be with this company long.

I am disappointed in the changes this builder has made in their process over the years. We use to sell their product at high levels and raved about them constantly. They use to connect you with a lender prior to the contract. Isn't that the way it should be? Shouldn't the buyer know there options BEFORE writing a contract with the builder? We wouldn't put a re-sale contract together without that information so why should it be any different? That in itself should be a violation because they require you to sign the contract and give them money before you know your financial options/obligations. Seems like a great way to get a buyer to give in because they now have a emotional attachment to the house.

Mar 12, 2008 05:13 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
I deal with a ton of builders and that sounds  like one in particular here.  I like how you <insert expletive here> for the name...ROFL!
Mar 15, 2008 08:35 AM