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Stearns Lending LLC

Additional Locations

Phone: (714) 513-7777 4 Hutton Centre Dr 10th Fl, Santa Ana, CA 92707 http://www.stearnslending.com View Additional Web Addresses

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Description

This company offers mortgage lending.

BBB Accreditation

This business is not BBB accredited.

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Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that lowered the rating for Stearns Lending LLC include:

  • 8 complaint(s) filed against business

Factors that raised the rating for Stearns Lending LLC include:

  • Length of time business has been operating
  • Response to 8 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

8 complaints closed with BBB in last 3 years | 5 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 1
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 7
Total Closed Complaints 8

Customer Reviews Summary Read customer reviews

3 Customer Reviews on Stearns Lending LLC
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 3
Total Customer Reviews 3

Additional Information

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BBB file opened: Business started: 07/31/1984 in CA Business incorporated: 06/30/2014 in CA
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Department of Business Oversight (DBO)
7575 Metropolitan Dr #108, San Diego CA 92108
http://www.dbo.ca.gov/
Phone Number: (866) 275-2677
Fax Number: (619) 682-7217
The number is 603G129.

Department of Business Oversight (DBO)
7575 Metropolitan Dr #108, San Diego CA 92108
http://www.dbo.ca.gov/
Phone Number: (866) 275-2677
Fax Number: (619) 682-7217
The number is 4130495.

Nationwide Mortgage Licensing System

http://mortgage.nationwidelicensingsystem.org
Phone Number: (240) 386-4444
The number is 1854.

Type of Entity

Corporation

Business Management
Mr. Glenn Stearns, Founder/Chairman of the Board
Contact Information
Principal: Mr. Glenn Stearns, Founder/Chairman of the Board
Number of Employees

1,677

Business Category

Mortgage Lender Mortgage Brokers

Alternate Business Names
CU Partners First Security Home Loans SGI Lending Stearns Financial Institutions Group Stearns Home Loans Stearnwholesale.com
Industry Tips
Financial Industry Foreclosure Rescue Companies Loan Modifications

Additional Locations

  • THIS LOCATION IS NOT BBB ACCREDITED

    4 Hutton Centre Dr 10th Fl

    Santa Ana, CA 92707

  • THIS LOCATION IS NOT BBB ACCREDITED

    555 Anton Blvd 3rd Fl Attn: Licensing

    Costa Mesa, CA 92626

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Complaint Detail(s)

9/24/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: My loan was changed from a previous servicer to stearns June 1. I noticed my mortgage payment was $300 higher than normal, after speaking to customer service rep I was told upon transferring the loan over they obtained the previous years county tax bill and needed my payment to reflect said amount. The property was an REO and taxed in a different tax bracket which i explained to the rep on the phone. I was told to provide a written request to have an account reanalysis and an updated estimate for the 2014 taxes from the county reflecting the lower tax bracket since the bill had not been generated. I did so, and mailed it as a notice of error to stearns per instructions and was told to wait up to 30 days for a review. I never received acknowledgement of receiving the document from stearns nor contacted as to the outcome, just a bill the following month with no changes. July 1 same thing, I contacted the customer service department and explained my situation and was told to fax said document and wait 10 days again no response or acknowledgment. Aug 11 again spoke to a rep and was told this time to email the document to customer service received and was told to wait 10 days with an automated response from the email. I called back 8/25 and they finally acknowledged now having the document on file but will refuse to do an analysis on the account until they have had the account for 6 months. I have called many times and get a different excuse and when i ask for the call to be escalated to a person of authority i'm either put on hold for 45 mins or the call is disconnected. I have now exhausted all of my additional funds in fear of late fees, negative credit reporting or worse foreclose. My taxes and insurance are now beyond payed for the year by more than $1,046.46 and they're are still collecting and expecting payment for September I've done everything in my power to prove the error on their part buy fall on deaf ears and blind eyes.

Desired Settlement: Escrow balance: $2,772.96 Your records state county tax disbursement (THIS IS THE ERROR): $3,699.71 "Actual" county tax due / projected from the county (THIS IS BILL IN YOUR RECORDS) : $1,090.32 Home owners insurance: $636.00 If you combine the home owners insurance with the county tax the total disbursed should be $1,726.32 which leaves $1,046.64 of additional funds sitting in the escrow account. The overage should be applied to the principal, interest & mortgage insurance for the month of September and the rest refunded or applied to the October bill. Im not sure what else there is to review, i have paid almost double into the escrow account. I cant get anywhere with the reps on the phones, please escalate this request to a person of higher authority.

Business Response:

Stearns Lending (the Company) is committed to customer satisfaction and regrets the
frustration that you experienced when attempting to resolve this issue. Stearns always
strives to provide an unprecedented level of service and attentiveness to our customers.

In your letter, you stated that you were due an escrow overage as the amount withheld for
your tax assessment was excessive.

A complete review of your file has been conducted and found the following:

1. On June 6, 2014, you contacted the Company and stated that you had
received a new tax bill. You were instructed to fax the same to the Company
and provided the number;
2. On August 11, 2014, you provided a letter via email from the taxing authority
with an estimated tax amount for 2014 (copy attached);
3. On August 27, 2014, you again contacted the Company regarding your taxes.
You were advised that the letter provided did not have the actual 2014 tax
amount, only an estimate and that the taxes could not be updated until the
actual amounts were available. This was in error as estimates can in fact be
used if the county provides a letter with the estimated amount or the tax bill,
otherwise the previous year's tax amount will be used. The representatives'
supervisors have been forwarded this issue so that it may be used for coaching
purposes;
4. The York County taxing authority has been contacted and verified that tax
amounts for 2014 will not be available until October 1, 2014 therefore the
estimated taxes were updated and the account reanalyzed. Effective with the
September 2014 payment, your new payment is $874.95; and,
5. You are correct that there was an escrow overage. The amount of $1,194.41
was refunded to you, via check, on September 9, 2014.

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID********, and have since received a check for the overage.  I find that this resolution satisfactory to me and consider this complaint resolved. 

Thank you for acting on this matter urgently.

Regards,

****** *****

9/23/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: We went through the process of being pre-approved and applying for a mortgage loan with Stearn's Lending, and 2 days before closing, ****** ****, their senior mortgage lender, changed the terms of the loan and was unclear in explaining the terms of the mortgage loan to me and my husband. We tried to resolve the issue with Stearn's Lending by attempting to obtain the original mortgage loan first promised to us but Stearn's did not agree after 2 weeks of discussion and emails. This resulted in us pursuing a different lender at the last minute which cost my husband and I more than $10,000 in mortgage related costs. We have given Stearn's Lending the opportunity to contact us to remedy the situation but have not heard from them since. and

Desired Settlement: We would like a formal apology as well as a guarantee to better their lending practices so that consumers are protected and compassionately treated.

Business Response:

Attached please find the response mailed to the borrower on September 12, 2014.  The borrower had also filed a consumer complaint directly to Stearns.

Thank you,

***** ******

Stearns Lending

Consumer & Regulatory Relations Manager

972-521-1080

September 12, 2014
Mrs. ****** ******
*** ******* ****
****** ******* ** *****
Stearns Lending, LLC
Re: Property Located at *** ******* ****, ****** ******* ** *****
Dear Mrs. ******,
Stearns Lending is committed to customer satisfaction and regrets the misunderstanding
that you and your husband experienced when applying for a loan. Stearns always strives
to provide an unprecedented level of service and attentiveness to our customers.
In your letter, you stated that you were "under the impression that we were obtaining a
higher rate 30 year fixed conventional loan without PMI. Instead, what we saw in the
requested closing documents from First American Title Company was a different loan than
what was agreed upon."
Early in the loan process, and prior to reaching the closing document stage, disclosures
are sent to a borrower so that they are provided the chance to review the loan product
being offered by the lender and the details of the terms. A review of your Stearns loan
records reveals that your initial disclosures were sent to you on April24, 2014. The packet
included:
1. The Federal Truth-In-Lending Disclosure Statement reflecting that Private
Mortgage Insurance was included in the loan product being offered and that the
monthly cost was $489.61;
2. The Loan Summary which reflected Mortgage Insurance in the estimated monthly
payment; and,
3. The Good Faith Estimate that reflected your estimated payment including the
Mortgage Insurance.
Finally, our records show that you and your husband signed the Federal Truth In Lending
as well as the Notice of Intent to Proceed with Loan Application indicating that you
accepted the terms as presented. I have attached a copy of all four documents for your
convenience.
In California, when your down payment is 10%, you are able to forego impounds (taxes
and insurance), as you chose to do, but a borrower cannot choose to do the same with
Mortgage Insurance unless they pay a 20% down payment. As explained by ****** ****,
your Senior Mortgage Loan Originator, the pricing of the Mortgage Insurance is based on
your credit score and does effect your monthly payment. In addition, your property lies
within a PUD where HOA dues are assessed on each property. That also increased your

payments by $245.00 per month.
Rather than practicing "negligent mortgage practices", the team at Stearns worked
diligently to present you with other options in an attempt to meet your needs. You and
your husband chose to go to another lender which we accept and respect.
I hope this has fully addressed your concerns. We are unable to address a conversation
that occurred between you and an executive at your credit union. Should you have any
questions, please do not hesitate to contact me at the number below.
Sincerely,
'
Consumer & Regulator/Relations Manager
Stearns Lending
Direct Line: 972-521-1080
cc: ********* ** **, President
attachments
Stearns

9/10/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: My complaint stems from my mortgage loan with Stearns Lending (#**********) that closed on 4/17/14 with a loss of $2,559 in builder's credit (and thus, additional cost to us, the borrowers) The mortgage is for a brand new home and our purchase contract included a builder credit of $8,799 to be applied towards closing or purchase price (or partially to both) in however form we wanted. This credit was reflected in the Good Faith Estimate (GFE) provided to us at the start of the application process (around Feb 27) and all other mortgage application documents thereafter. The builder also sent closing instructions on 3/24/14 to confirm how to apply the credit. I confirmed with the Stearn's broker (B2 Funding) that the credit could be fully applied towards closing costs before reconfirming with the builder. Fast forward to Apr 16 (a few days late on closing - different issue), I finally received the HUD settlement sheet a couple of hours before set closing showing the builder credit reduced to $4,500! I challenged this and was simply told by Stearns closing agent (****** *****) that it was done so because I had to fork out the full 20% downpayment myself. Quite as a matter-of-fact with no regard to the fact that it was costing me $4,200! Keep in mind that at no point during this lengthy process was this issue ever brought up! If so, it could have been easily handled by asking the builder to revise the purchase price by the difference in credit. I refused to sign off the settlement and agreed with the broker to setup an escrow account to be funded with the credit difference. This needed to be done next day 4/17 as I had already received a 5-day notice from the builder to close or lose my previous deposits due to delays from premised Apr 10 closing date. The revised HUD with the escrow account was provided right before closing that only reflected a builder credit of $6,240, a difference of $2,559. It was too late to do anything at this point so I had to close as is costing me $2,559. I firmly believe that this issue could have been avoided by proper communication by Stearns/broker and some iota of regard to the customer / borrower by Stearns closing agent.

Desired Settlement: Refund of $2,559 loss in builder credit from transaction

Business Response:

This will acknowledge receipt of the borrower's complaint.  Stearns has already received and responded to the borrower regarding this complaint in April, 2014.  We will review the information in this complaint to ascertain if there are any new allegations and will respond accordingly.

Thank you,

***** ******

Consumer & Regulatory Relations Manager

 

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

[The response is not specific and only makes reference to prior dialogue in first complaint to business. I disagreed with their position then hence the complaint to BBB]

Regards,

******* *******


Business Response:

Borrower’s Complaint:  Borrower believes that Stearns owes him $2,559 in builder’s credits.

Stearns Response:  Stearns responded recently to a customer complaint from this borrower on this issue and explained that the borrower’s builder agreed to an “up to” amount for their contribution towards closing costs and prepaids.  Stearns explained that in this signed contract between the borrower and builder, there is a disclaimer that states that the “lender may limit this contribution.”  In the borrower’s loan, his closing costs and pre-paid expenses were less than the builder offered and the seller cannot contribute more money than the fees cost.  If they did, that would equate to the seller contributing to the borrower’s down payment, which is an inducement to purchase and not allowed without a reduction in the loan amount.  We tried to explain that this issue was between the borrower and the builder and/or broker.  That if the builder was to apply this credit to options, then he should have done that.  We also reminded the borrower that it was disclosed to him in the beginning of the process that the credit exceeded the closing costs and that was the extent of Stearns reach. Stearns is not allowed to refund any monies that are agreed to between the sellers and the purchasers of a property. 

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

Again, lender's agent incompetence and zero communication is the primary reason that for having to pay an extra $2599 out of pocket. The initial loan offer accounted for the full builder credit and I was never provided a revised estimate until closing showing a drastically reduced builder credit. The additional cost to me would have been ~$5000 if I did not absolutely refuse to sign and forced the lender to make necessary adjustments to utilize additional builder credits.

 
Any competent lender with an iota of regard to the paying customer could have easily structured the final settlement to utilize the full builder credit or advised the customer sometime during the long closing process (~45 days) of any impending issues.

Regards,

******* *******



4/29/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Stearns Lending customer service is by far some of the worst I've seen in any industry, especially the mortgage industry. Over 1 hour 15 minute phone call, where about 75% was spent on hold, and transferring from one person to the next. All for a very simple request to reverse a late fee. A late fee that was charged due to a mistake on their end. At the end of a 1 hour 22 minute phone call, the call was just dropped.During the phone call, I explained to numerous people that I'm willing to pay the amount due, just want the late fee reversed. However, no one can seem to transfer me to the person who can reverse that. Even when told I was going to be transfered to a supervisor who could help, I was not, it was just another associate who had no power to make that change to my account. The worst part is my loan was purchased by Stearns without any approval from me. Now I'm stuck with their horrible customer service and poor business practices.

Desired Settlement: A simple reversal of a late fee.

Business Response:

Please be advised that I attempted to respond to this yesterday but your website would not allow me to enter the information.  I also attempted to contact your dispute department however a voice recording told me the department was closed.

Mr. *******'s issue:  He wanted the late fee removed from his account as he thought the auto-draft he set up was effective as of 3/1/14.

Stearn Response:

  • Mr. ******* set up his auto-draft two business days prior to March 1st which was not enough time to be effective on March 1st.  An auto-draft needs to be set up five or more business days prior to the beginning of the month the borrower would like the auto-draft to begin.
  • When Mr. ******* set up his auto-draft via the web on 2/26/28, he received a confirmation online of when the auto-draft would begin.  In addition, an automatic letter was generated on the same date and mailed to his home address advising him that the auto-draft would be effective 4/5/2014 (attached).
  • This matter has been resolved.  Mr. ******* made his payment by phone and the late fee was waived.

Thank You,

***** ******

3/6/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: My property taxes for the second installment of 2011 were not paid by Stearns Lending. they still have not corrected the issue. I have an escrow account to pay my property taxes. the second installment of my 2011 property taxes were not paid. I have contacted Stearns for over a year about the problem as late fees continued to mount. The property was sold and after continuing to contact Stearns, nothing was done. I have called Stearns over 2 dozen times, spoken to supervisors and managers with no success. I am given direct numbers and no one ever answers or returns my calls. I have been promised updates and calls and have receiven none. My property is due to be taken from me in 13 days. I called Stearns and was told to wait on hold for an hour while a different supervisor finishes lunch. I have tried for over a year to resolve the problem with no success. I feel as I have been mislead and not given any answers. I was also told that my county would not tell them what was needed to resolve the problem. I spoke to the county over the phone and in about 5 minutes learned what Stearns needed to obtain in order to resolve the issue.

Desired Settlement: I would like Stearns to pay my tax bill with the money they collected from me in my escrow account AND THEY SHOULD BE LIABLE FOR THE LATE FEES AND PENALTIES, AS PER THE LAW. I am hoping my property isnt taken away.

Business Response:

This will acknowledge receipt of **** *********'s complaint.  We will research the file and respond as soon as possible.

Thank you,

***** ******

Customer & Regulatory Relations Manager

 

Business Response:

We are actively researching this matter.  Research was received that I have sent additional queries on.  We will respond fully to this complaint; that said, it does appear that the borrower's complaint is valid.  Please allow us until Monday to finalize our response.

Thank you,

***** ******

Business Response:

Stearns Response:

A bulk tax check was disbursed on 7/24/12 which included the tax payment for this loan and several other loans. The tax payment for this loan was assessed to be $2,252.76 as of that date.

It was later determined that the bulk check was made out for the wrong amount so all payments were reversed and credited back to their perspective loans on 7/27/12.

A second bulk check was later reissued but the payment for this loan was inadvertently excluded so the borrower is correct in stating the taxes on his property were not paid.

On 11/7/13, the tax department became aware that the property was scheduled for tax sale.  A check of the county tax website was made but reflected all parcels paid and current.

On 1/2/14, the tax department received another notification that the property wa scheduled for tax sale.  On the same date, the tax department submitted a redemption certificate along with the fee for the same.

As of 1/29/14, the redemption certificate was not received so a second request for a redemption certificate was made to the county with follow up requests made on 2/6/14 and 2/14/14.  No response was received from the county.

On 2/10/14, the county website reflected that the property had been redeemed, however, the borrower was contacted today and advised that he has not redeemed the property.

This matter has now been escalated with the county and a rush redemption certificate has been requested.

Stearns reqrets the inconvenience the borrower has experienced with this issue.  We will continue to address the same until it is resolved.  The borrower's escrow account will not be assessed any penalties or interest.  These will be absorbed by the company.  

Thank you,

***** ******

Consumer & Regulatory Relations Manager

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10/21/2013 Problems with Product/Service
7/30/2013 Billing/Collection Issues
4/30/2013 Problems with Product/Service