Failed to process a residential refinance. Offered a package, filled application, locked rate, then disqualified for bogus reasons when rate increased
I was contacted by the company by phone and discussed a cash out refinance of my home. I made clear from the beginning that it would be a co-signer or co-borrower situation with my daughter. I asked three times that he verify that they handle that type loan. He assured me that they did. On April 15, by phone I locked rate for a 30-year fixed rate loan. I filled out the company's application online. I was then informed that they did not do co-sign loans. I asked if they could handle a co-borrower loan and he thought they could. Meanwhile the interest rates were rising. I requested via email and on the phone numerous times that he send me the Good Faith Estimate on our deal. I have copies of all this correspondence.) He did not send it and stopped returning my phone calls and emails. In desperation, I sent a text message to the company's website that there was a problem, and an automated response came back.
Finally I called the main number and spoke with another mortgage broker who promised to look into it and call me back. He did not. A day later, I received a notice from a credit processing center. It was a statement of credit denial, and two reason were given. 1-"Withdrawn file due to borrower inactivity." This was not true. I had been actively attempting to contact them via email and phone, and had filled out an application. 2- "Credit Decision." I know for a fact that both my credit, and my daughter's credit, is fine. We had already been pre-approved by the bank and our credit scores had been sent to us.
No one from the company ever called to explain. I phoned their main number again and explained to person who answered (a woman) that I had received a credit processing center denial and that it must be a mistake.
The next day, I phoned and asked for the manager. When asked the nature of my call, I politely refused to provide it. The manager, came on line and when I explained the problem to him, he responded by telling me that they do not handle "those types of loans." He said my daughter's name would need to be on the property "title for six months" before they could process this type loan, that this is Texas law. He did not tell me why he did not know this, or why they chose to turn the whole situation around and make it appear that I was at fault. He did say that he did not know that, and that he, would speak to him about it, that it was a "learning experience" for him. He also did not apologize for their lack of communication to us about the matter, choosing instead to blame us.
By now I'd waited 3 weeks, under the impression we had locked in on a rate. I was forced to go shopping for a loan from another source, and now rates had climbed significantly.
There is also a 30-day grace period when credit reports can be pulled while shopping for a loan without negatively impacting the credit scores of both my daughter and myself. Because of the company's delays in informing us of the situation, we had only ONE WEEK left to find another lender before that 30-day period was expired and our credit would be negatively effected by lender inquiries.
We have at this point found a lender but are not yet approved. The rate is much higher than offered from the company and our credit has not been pulled yet and when it is, it will likely be lower as a direct result of actions taken by SLG. I am considering taking further action.
THIS SITUATION MUST BE REMEDIED!
The company must send me and my daughter each a letter, explaining their negligence in full detail and addressing the impact it likely will have on our credit reports and scores, so that we can file this letter with all three of the credit reporting agencies.
We also demand that a letter be written by the company stating that the basis for denying the loan is unfounded, and demanding that all reference to this denial be removed from both my daughter's and my credit records, and from the Corelogic files. We demand that the company write to the three credit reporting agencies and explain that the denial was in error. We further demand that these letters be sent to my daughter and myself so that we can have them filed for our records, and submit them to the credit reporting agencies to be added to our files along with an explanation on our part.
We expect and deserve a full apology, in writing, for wasting three weeks of our time, for adversely effecting both our credit standings, and for forcing us to pay a significant increase in mortgage interest, equating to a huge amount in dollars for the term of the loan we must now secure at a higher interest rate.
After a preliminary review of the borrower's situation, we discovered that the would not qualify under guidelines. We communicated this to the borrower on 06/04. Nothing was charged to the borrower.