BBB Logo

Better Business Bureau ®
Start With Trust®
Print

BBB Business Reviews may not be reproduced for sales or promotional purposes.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that New Penn Financial, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Find a Location

New Penn Financial, LLC at its headquarters and all its company-owned locations throughout the United States is a BBB Accredited Business. This means they support BBB's services to the public and meet BBB Accreditation standards everywhere they do business. A BBB Accredited Business since April 30, 2009.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that raised the rating for New Penn Financial, LLC include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 47 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.


Customer Complaints Summary Read complaint details

47 complaints closed with BBB in last 3 years | 15 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 9
Billing/Collection Issues 3
Delivery Issues 1
Guarantee/Warranty Issues 0
Problems with Product/Service 34
Total Closed Complaints 47

Additional Information

top
BBB file opened: April 22, 2009 Business started: 04/01/1996 in PA Business started locally: 04/01/2007 Business incorporated: 04/01/1996 in PA
Licensing

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 Banking and Securities-PA
Market Square Plaza, 17 North 2nd St Suite 1300, Harrisburg PA 17101
http://www.banking.state.pa.us
Phone Number: 717-787-1854
Fax Number: 717-787-8773
The license number is 20434.002 Mortgage Lender License PA.

Type of Entity

Limited Liability Company (LLC)

Business Management
Mr. Jerry Schiano, President & CEO
Contact Information
Principal: Mr. Jerry Schiano, President & CEO
Business Category

Mortgage Bankers


Additional Locations

X

What is a BBB Business Review?

We offer free reviews on businesses that include background, licensing, consumer experience and other information such as governmental actions that is known to BBB. These reviews are provided for businesses that are BBB accredited and also for businesses that are not BBB accredited.

X

About BBB Business Review Content & Services:

Some Better Business Bureaus offer additional content & services in BBB Business Reviews.
The additional content & services are typically regional in nature or, in some cases, a new product or service that is being tested prior to a more general release.
Not all enhanced content & services are available at all Better Business Bureaus.

Professional AffiliationsX
X

Types of Complaints Handled by BBB

BBB handles the following types of complaints between businesses and their customers so long as they are not, or have not been, litigated:

  • Advertising or Sales
  • Billing or Collection
  • Problems with Products or Services
  • Delivery
  • Guarantee or Warranty

We do not handle workplace disputes, discrimination claims or claims about the quality of health or legal services.

X

BBB Complaint Process

Your complaint will be forwarded to the business within two business days. The business will be asked to respond within 14 days, and if a response is not received, a second request will be made. You will be notified of the business's response when we receive it (or notified that we received no response). Complaints are usually closed within 30 business days.

X

What is BBB Advertising Review?

BBB promotes truth in advertising by contacting advertisers whose claims conflict with the BBB Code of Advertising. These claims come to our attention from our internal review of advertising, consumer complaints and competitor challenges. BBB asks advertisers to prove their claims, change ads to make offers more clear to consumers, and remove misleading or deceptive statements.

X

What government actions does BBB report on?

BBB reports on known significant government actions involving business' marketplace conduct.

X

Thank you for your feedback!

Help us improve by taking our survey.

X

BBB Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.

X

Additional Phone Numbers

  • (440) 239-7780(Phone)
  • (484) 594-1022(Phone)
  • (888) 999-3896(Phone)
  • (440) 239-7790 (Fax)
  • (888) 783-6866 (Fax)
X

Additional Email Addresses

  • - Customer Service
  • - eQuote
  • - Sales
Find a LocationX

  Change Location
Show Only Accredited Locations


Complaint Detail(s)

6/9/2014 Problems with Product/Service
5/23/2014 Problems with Product/Service
5/17/2014 Advertising/Sales Issues
3/30/2014 Advertising/Sales Issues
2/19/2014 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: My name is **** *. ******** and I am filing a complaint against New Penn Financial because they serviced my 203K rehabilitation loan fraudulently and now my house is scheduled to be condemned. New Penn’s representative ******* ****** lied about my escrow account. After closing, he informed me that my mortgage could not be built into my escrow while the house was being rehabilitated, this put me in a position where I had to pay rent and mortgage. I then filed a complaint with the Better Business Bureau. Once the BBB informed New Penn of the complaint they decided to sell the loan. The loan was sold 2 weeks after closing, but in an effort to rectify the complaint, **** **** expedited the initial draw in the amount of $28,000.00 without county permits being pulled. After the initial draw the loan was sold to **** ** ******* where they continued to disperse fund to the contractor without permits. During his attempt to save New Penn’s reputation he forgot to get copies of the county permits and drawings needed to start the rehabilitation. So the contractor ****** ***** (appointed by HUD consultant) began the illegal rehabilitation of my home without permission from ******* County, DLLR. Additionally, the HUD Consultant *** ********* (appointed by New Penn) allow the contractor ****** ***** to perform $91,000 in rehabilitation without a single permit being submitted knowing that 4 permits were needed to complete the rehabilitation legally. After it was discovered that permits were required **** ** ******* who now services my loan contacted New Penn because HUD has threatened to indemnify the loan, New Penn did not respond. HUD took the necessary steps to remove ****** ********* from the list of approved 203K inspectors, but New Penn has made no attempts to rectify the problem. New Penn Financial took advantage of me as a first time home buyer, they lied about my escrow, they forced me to accept *** ********* as my 203K HUD consultant after I notified **** of ***'s scam reports, and they helped the inspector and contractor rip my family off. My dream home has become a nightmare filled with mold, sewer backup, leaking pipes, faulty electricity, a leaking roof, broke windows, a used HVAC system and endless sleepless night for my wife and I. ******* County officials has been patient with my family of 10, but legal actions against my family are inevitable because they have to abide by the law. What began as a $113,000 rehabilitation now requires $140,000 to correct the proble** created by a group of money hungry vultures. My family is in no position to take out an additional $140,000 mortgage to correct what should have been done properly and legally the first time, so we will leave out dream home turn nightmare and begin to rebuild our lives. I do not expect New Penn to accept its part in this since it's been 2 years, but my goal is to warn other home owners about New Penn's lack of care and integrity.

Desired Settlement: Complete the repairs needed to prevent my house from being condemned.

Business Response:

I am in receipt of the complaint **. ******** submitted to the Better Business Bureau (“BBB”) on October 1, 2013.  Please be assured that New Penn Financial, LLC (“New Penn”) reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  After reviewing **. ********’s complaint and investigating the surrounding circu**tances, I offer the following response:

**. ******** submitted a complaint to the Better Business Bureau (BBB ID No. *******) on July 28, 2011 (submitted herewith) arising out of the identical set of facts as does the instant complaint.  At that time, New Penn worked diligently with **. ******** and other parties to the underlying transaction to resolve the 2011 BBB complaint in a satisfactory manner.  Notably, New Penn and **. ******** jointly entered into a Payment Advance Agreement, dated August 9, 2011 (submitted herewith), whereby New Penn agreed to advance funds to **. ******** so that he could satisfy contractor debts until such time that **** ** ******* agreed to purchase his 203k loan from New Penn. 

With respect to the 2001 BBB complaint, the BBB evaluated New Penn’s efforts and determined that New Penn addressed the disputed issues and acted in good faith in attempting to resolve the problem. (Notice of Closure dated September 26, 2011 is submitted herewith.) 

**. ******** has not introduced any new information which would mandate additional action on the part of New Penn.  Any issues **. ******** has with the servicing of his loan should be directed to the servicer, **** ** *******. 

New Penn affirmatively contends that, at all relevant times, its efforts to accommodate **. ******** were made with the sole intent of putting him in the best position to renovate his property as he saw fit.  New Penn has no responsibility whatsoever for the ultimate failure of his project.  

                                                                                    Sincerely,

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

                                                                                    **** *******, Esq.

                                                                                    Chief Compliance Officer

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Complaint: *******

I am rejecting this response because New Penn Financial breached their contract by releasing the rehab funds without the proper permits being pulled. As stated in the contract, no funds will be released without required permits and drawings. New Penn made the choice to release funds without permits and drawings attached to the draw which ultimately breached the rehabilitation contract allowing the rehab to be done outside of ******* County DLLR rules and regulations. As stated by ***** *******, MLO-Servicing Team Manager II LP - 203k -REHAB from **** ** ******* and ******* ******, PHOC of HUD the 203 Rehabilitation contract was breached when **** **** of New Penn Financial released funds without permits and drawings. Due to the negligence of New Penn Financial not only is the loan indemnified but the house is scheduled to be condemned.  In response to Jeffrey ******* statement:

(**. ******** has not introduced any new information which would mandate additional action on the part of New Penn. )
 
 
I have made several attempts to contact New Penn concerning the breach of contract. Additionally, ***** *******, ******* ****** and **** ******** ****** of NAARP have made numerous attempts to contact New Penn Financial on my behalf. This is the first response I have received from New Penn Financial.


Regards,

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








Business Response:

In his rebuttal, **. ******** makes reference to statements from ***** ******* and ******* ******.  New Penn is not aware of the existence of any such statements.  If **. ******** would provide us with copies of these alleged statements, New Penn would be happy to review them and respond to any new information contained therein.

**. ******** further claims that **. ******* and **. ****** "have made numerous attempts to contact New Penn Financial" on his behalf.  Both of these individuals have complete contact information for **** **** and other New Penn employees.  They know how to get in touch with us.  **. **** has not received any emails or voicemails from either **. ******* or **. ****** pertaining to **. ********.  This assertion stretches credulity.

**** ******** ****** of AARP did, in fact, contact New Penn in connection with this matter.  She asked if New Penn's CEO would be willing to appear on the AARP television program, "Inside E Street" to discuss **. ********'s unfounded accusations.  New Penn provided **. ****** with the response set forther below within three business days of her request.  We have not heard back from her. 

 

From: ********, *****
Sent: Friday, December 13, 2013 5:16 PM
To: ******************************
Subject: Request for phone interview - ********

Dear **. ******** ******:

 

Your email addressed to **. ******* was forwarded to my office for review.  I am the Senior Vice President of Risk Management at New Penn Financial, and legal, compliance, and customer service issues fall under my areas responsibility.  We appreciate your request and understand that you are seeking information regarding one of our mortgage borrowers.  As I am sure you will understand, New Penn Financial values the privacy of our customers, and by policy, does not discuss private matters in a public forum.

 

Please be assured that New Penn Financial reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution. Without getting into specific details, I can assure you that New Penn has worked very hard to satisfy **. ********’s concerns. 

 

New Penn has responded various times to both **. ******** and to the Better Business Bureau on this matter.  With respect to **. ********’s complaint, the Better Business Bureau evaluated New Penn’s efforts and in a Notice of Closure dated September 26, 2011, determined that New Penn addressed the disputed issues and acted in good faith in attempting to resolve the problem.  While **. ******** is not satisfied with New Penn’s responses, the fact remains that his issue is, in fact, with an independently appointed HUD property inspector (which is a requirement of the 203k loan product for which **. ******** applied), and a contractor who was hired directly by **. ********.  Neither of these parties are associated in any way with New Penn Financial.

 

New Penn strongly believes that its efforts to accommodate **. ******** were made with the sole intent of putting him in the best position to renovate his property as he saw fit.  We have tried, and continue to try, to do anything we can to assist him.  If **. ******** has any additional questions or concerns, he should contact us directly.

***** *. ********

Senior Vice President - Chief Risk Officer

 

 

Sincerely,

 

**** *******, Esq.

Chief Compliance Officer

Consumer Response: Complaint: *******

I am rejecting this response because: New Penn has been completely been dishonest throughout this entire process and is trying to avoid responsibility for their actions.   I will address the following statements accordingly:



"If **. ******** would provide us with copies of these alleged statements, New Penn would be happy to review them and respond to any new information contained therein.

**. ******** further claims that **. ******* and **. ****** "have made numerous attempts to contact New Penn Financial" on his behalf.  Both of these individuals have complete contact information for **** **** and other New Penn employees.  They know how to get in touch with us.  **. **** has not received any emails or voicemails from either **. ******* or **. ****** pertaining to **. ********.   This assertion stretches credulity."

 


Here are the emails that NPF claims that they have never received, which have been directed specifically to **** ****, & **** ****** ( of New Penn Financial ) including ******* County officials, BOA and HUD officials parties informing them of the Health & Safety issues to include code violations and permits along with architectural drawings not being pulled by original lender, which clearly violates the terms and agreement of contract. 




--------- Original Message ---------

Subject: Re: FWD: FW: #***********

From: "*** ******" <*************************>

Date: 5/1/13 1:24 pm

To: "********, *****" <*******************>, "****, ****" <***************************>, "******, *******" <****************************>, "*******, *******" <**************************>, *********************************, **********************, ********************, **************, *****************


This is an email to detail the violations at **. & ***. ********'s home located at **** ********* ***** ******* MD.  First let me copy my Code Inspection and Enforcement Officers report from his first visit at the site from 12/8/11:

 

 

12/08/11 - Main Issues are :                                           

1) Permits needed for Framing, Electrical, Plumbing and HVAC work done 

2) Electrical work is poorly done with missing cover plates, open junction boxes, panel box not labeled, lots of new recessed lights and 

outlets that are arcing. (This circuit was turned off) There are Safety Issues here. 3) Toilet has hot water run to it, sink and wall   

fixtures are not installed properly and do not seal or are loose.      

Supply lines are rubbing against each other. 4) New walls have been framed to replace rotted wood. There is no insulation in the attic.    

Is there any new insulation in these walls? There are sections of missing insulation under the cabinet and at the plumbing clean-out.    

A large glass block window was covered over with a new wall for a tub. 

5) There are no covers on any duct vents. The system is not balanced, one side of the house is hot and one side cold. 6) There is trash that 

was thrown on different areas of the Owners property. Some of it is within 8' of a stream and culvert pipe. There is a structural issue with the garage.

Pool needs to be made safe and the barrier Code compliant.  

As you can tell from the report there were and still remain some very serious issues, including life safety issues.  I have told The ********'s that I cannot allow them to stay in the structure much longer without these issues being brought into compliance.  Of the most immediate concern is the electrical issues.  Everyone should understand just because there hasn't been a fire and electrical shock so far, doesn't mean that all is well;  there are serious deficiencies that still remain.  I need the following to happen within 30 days, failure to do so could result in the eviction of the homeowners from their house.  

 

- Apply for a Building Permit for all structural interior repairs that took place.

 

- Apply for Electrical Permit for all wiring in the structure; this means new and existing.

 

- Apply for a Plumbing Permit for any plumbing work that took place during the renovation.

 

- Apply for a Mechanical Permit for all HVAC work that took place.

Once all permits have been issued we will need to have all inspections completed within 30 days of the issuance of the permits.  Completed means, inspected and approved.  Of course significant portions of the work have been covered and will not be able to be inspected as we would normally do.  This will necessitate the need for Structural Engineering from a Maryland Licensed Professional.  This engineering will include verification that the framing and fire-blocking and insulation are to code as well.  The trades permits will need to include a certification from the electrician, plumber, HVAC installer, that all work that is covered and cannot be inspected is installed per code. The trades contractor that applies for the work will be accepting responsibility for all work that will be required to be included on the permit (mentioned above).

 

     Quite honestly I'm very disappointed that this has gotten to this point.  I do not know enough to figure out who was "asleep at the wheel" on this, but to have an entire house remodeled by a License Contractor who did not pull any permits is not acceptable in ******* County.  Please update me weekly.  Any questions let me know.  

_________________________________________________________________________________________________________________________________________________________________________________________

From: *******, ***** * [mailto:*********************************] 

Sent: Monday, April 22, 2013 1:36 PM

To: ******, *******

Subject: #***********

 

Hi  *******-


This file continues to be an issue.  I’ve reached out to the Previous Lender and they did not get the permits prior to releasing the First Draw, nor did they escrow funds for permits.  Do you have any advise as to how we can move forward?    At what point will this loan be indemnified.  The homeowner has no intention of completing his repairs.  He feels it is the banks responsibility to fix his property.  I believe you were on the e-mail he sent us,  with his demands.  The HUD consultant did a dreadful job of managing this project,  the contractor won an arbitration against the homeowner and now is out of the picture.  We really need some guidance as to how to proceed.  We hope that the HUD consultant is being sanctioned.  He has created a terrible situation.  We are not utilizing him any longer on any of our loans. 

 I have made multiple efforts to contact the county,  to find out what needs to be done.  I have not been able to speak to anyone. 

Please advise!

Thank you!

***** *. ******* *

MLO-SERVICING TEAM MANAGER  II

LP -203K - REHAB 

cid:***********************

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

**: *************

**** ******, CA *****


Phone:  ###-###-####


Fax: ************

This communication from **** ** ******* - may contain privileged and/or confidential information. It is intended solely for the use of the addressee. If you are not the intended recipient, you are strictly prohibited from disclosing, copying, distributing or using any of this information.  If you receive this communication in error, please contact the sender immediately and destroy the material in its entirety, whether electronic or hard copy. This communication may contain nonpublic personal information about consumers subject to the restrictions of the Gramm-Leach-Bliley Act. You may not directly or indirectly reuse or re-disclose such information for any purpose other than to provide the services for which you are receiving the information.

This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at ********************************************* If you are not the intended recipient, please delete this message.




This e-mail is intended only for the addressee and may contain confidential and/or privileged material. Any interception, or other use of, or taking of any action upon the information contained therein by persons or entities other than the intended recipient is prohibited and may subject them to criminal or civil liability. If you received this communication in error, please delete the communication from any computer or network system. Although this e-mail (including attachments) is believed to be free of any virus or other defect, it is the responsibility of the recipient to ensure that it is virus free, and no responsibility is accepted by the sender for any loss or damage arising in any way in the event that such a virus or defect exists. ******* County accepts no liability for the content of this email, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. No employee or agent is authorized to conclude any binding agreement on behalf of ******* County with another party by email, without express written confirmation by the County Commissioners of ******* County. ******* County Government is an equal opportunity employer, and maintains a strict policy against discrimination and/or harassment of any kind.


__________________________________________________________________________________________________________________________________________________________________________________________

 

These emails confirm my original statements and restores my credulity, not to mention, further illustrates the unscrupulous stall tactics / practices New Penn Financial will do to avoid any and all responsibility. 

Respectfully,


**** *. ********

BBB's Final Determination: After reviewing the information provided by all parties, BBB determined that the business handled the matter appropriately, and no further action was needed.

1/17/2014 Billing/Collection Issues
12/28/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Company ran credit without first advising of such or being entering into any engagements. FCRA rules - no response or stance from company although contacted several times.

Desired Settlement: Reverse unauthorized credit inquiry - explanation of actions

Business Response:

I am in receipt of the complaint **. ****** submitted to the Better Business Bureau on November 30, 2013.  Please be assured that New Penn Financial, LLC (“New Penn”) reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  After reviewing **. ******’s complaint and investigating the surrounding circu**tances, I offer the following response:

New Penn reviewed **. ******’s credit (with his permission) for the first time in June of 2012.  This action was taken in anticipation of a loan to refinance the mortgage on his residence in Otis, Oregon.  No further action took place at that time due to credit-related obstacles.  

In November of 2013, New Penn loan officer ***** ***** (NMLS ID ******) contacted **. ****** to see if he was amenable to exploring the matter once again.  **. ***** asked **. ****** if he would authorize her to check his credit to determine if his credit score had improved since June of 2012.  If so, we might be able to proceed with refinancing **. ******’s mortgage. 

New Penn’s records and **. *****’s testimony indicate that, during his discussion with **. *****, **. ****** affirmatively consented to the credit pull at issue.  Contrary to **. ******’s assertion, **. ***** clearly explained to him that his consent would lead to the credit check of which he explains.

New Penn sincerely apologizes for any inconvenience **. ****** has experienced as a result of this transaction.  However, New Penn processed his inquiry professionally and in accordance with all applicable laws, regulations, and industry standards. 

New Penn further apologizes to **. ****** for any unresponsiveness he may have experienced while trying to contact the company directly to discuss this matter.

If I can be of any further assistance, please do not hesitate to contact me at the email address provided below.

 

Sincerely,

**** *******, Esq.

Chief Compliance Officer

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

                                                  

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/28/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: this is a finance company, they called me about doing a refi and after a lot of promises i agreed, first i had to pay for the appraisel that was over priced, then i had to get them a bunch of paperwork, on 5 different occasions i dropped off at their office, then i was contacted that all was approved, i set up a few things to do when all complete, i then got a call and was told that it was contingent on my rof being completed which was not until April and i would have to pay lock in fees or wait and go with the rate at that time, i got a ruaround, then they canceled the refi without my asking that means i have to pay a fee or start all over again, it was a horrible experience ans the very young lady that was helping me was terrible and did not know much, it has cost me about 1000 dollars and a lot of agg and i am still at the same starting spoy, what a waste of time.

Desired Settlement: want to refi and the rate promised and approved for the month of December as told, i did my part.

Business Response:

I am in receipt of the complaint **. ******* filed with the Better Business Bureau.  Please be assured that New Penn Financial, LLC (“New Penn”) reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  After reviewing **. *******’s complaint and investigating the surrounding circumstances, I offer the following response:

Our records indicate that, on or about October 28, 2013, **. ******* applied to New Penn for a mortgage loan to refinance the existing mortgage (the “Application”) secured by his residence located at *** **** ******* **** in ************, Pennsylvania (the “Property”). Subsequent to negotiations between **. ******* and New Penn, on November 5 (“Lock Date”), New Penn offered, and **. ******* accepted, a below-market interest rate of 3.625% on a 15-year fixed rate loan in the amount of $344,500.00.  (The rate lock agreement had an express expiration date of November 30, 2013.) New Penn agreed to provide a lender concession and absorb costs that would normally have been charged to the borrower in order to provide **. ******* with the loan terms that he desired. 

In consideration of this lender credit, **. ******* agreed to provide New Penn with all documentation necessary to support his application within 48 hours of the Lock Date.  After New Penn repeatedly followed up with **. ******* to remind him of his promise, **. ******* submitted most of the requested documents 10 days after the Lock Date. 

However, when **. ******* visited New Penn’s office to review these documents with his loan officer, it became evident that he had failed to provide all of the essential documents.  In some cases, **. ******* provided outdated documents that could not be utilized by New Penn.  **. *******’s wife had failed to sign other disclosure documents.

When New Penn finally had all of the documents as well as the appraisal of the Property, the Application was sent to New Penn’s Underwriting Department, which issued a conditional loan approval on November 15, 2013.  **. ******* was advised that the most serious condition that had to be satisfied before the Application could be cleared to close was that, per the appraiser’s report, the Property’s roof was near the end of its useful life.  (New Penn will not lend against a property deemed unsafe.)  Underwriting conditioned its approval upon either (1) a satisfactory roof certification from a roofing specialist or (2) replacement of the roof. 

When the roofing problem was raised, **. ******* informed New Penn that he had already had the roof examined, placed a claim with his insurance company, and scheduled a contractor to replace the roof on December 6, 2013.  (This was the first time in the process that **. ******* disclosed his insurance claim on the roof.)  New Penn requested a written estimate for the roof replacement and proof of payment from the insurance company which **. ******* provided. 

Shortly thereafter, **. ******* informed New Penn that, contrary to his earlier statement, the roof  would not be replaced until the spring as he was still searching for a contractor to complete the work.  New Penn reiterated its position that the Application could not be cleared to close until the roof work was completed satisfactorily.

At this time, New Penn clearly communicated to **. ******* that the transaction would have to close on or before November 30, 2013 to avoid rate lock extension fees.  New Penn agreed to extend the lock if the roof work was indeed going to be completed on December 6, 2013.  Furthermore, New Penn was willing to absorb a portion of the lock extension fee. 

**. ******* was acutely aware that he locked in at an extremely advantageous rate and that lock extensions would be expensive for both parties as interest rates had risen since the Lock Date.  **. ******* demanded that New Penn extend the lock at no cost to him until the spring when he intended to have the work completed.  His entreaty was irrational and was properly declined by New Penn at which point **. ******* explicitly directed New Penn to cancel the Application and to return his personal documents to him.

In accordance with his wishes, New Penn cancelled the Application on November 21 and packaged his documents for pickup on Friday, November 22.  **. ******* did not show up to pick up his documents on the 22nd.  Instead, over the weekend, he sent an email (which was received by New Penn on Monday the 25th) stating that he was going to have the roof replaced on December 6 and that he desired to continue with the Application process.  New Penn called **. ******* to confirm that the Application had been cancelled on the 21st in accordance with his wishes. 

We explained that, if he so desired, New Penn could reopen his Application and reestablish the rate lock.  Doing so, however, would come at a significant cost to him.  At this point **. ******* became extremely hostile with the loan officer working on his file to the extent of directing profanities at her.  This was the end of New Penn’s relationship with this individual.

New Penn firmly believes that, at all times, it processed his inquiry professionally and in accordance with all applicable laws, regulations, and industry guidelines.  In spite of the foregoing, in the interest of goodwill, New Penn will refund **. *******’s $450.00 appraisal fee.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/17/2013 Advertising/Sales Issues | Read Complaint Details
X

Additional Notes

Complaint: Good day and thank you for assisting in this natter.I have called this company more than once asking them to please stop contacting me, soliciting me, regarding my current mortgage and wanting to refinance my current one. I'm not interested, advised them of this. politely, and was assured I would be taken off the "list". I received yet another letter today, same verbiage as the last 6-8 previous letters. I called again and was told the same thing - "I would be taken off the list."I feel harassed and am tired of asking politely.Respectfully,****** ** ********** **

Desired Settlement: Stop ALL contact with me from this company and any or all affiliates there of.

Business Response:

I am in receipt of the complaint *** ********** filed with the Better Business Bureau (“BBB”) against New Penn Financial, LLC (“New Penn”).  Please be assured that New Penn reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  After reviewing *** **********’s complaint and investigating the surrounding circumstances, I offer the following response:

New Penn purchases sales leads from companies in order to identify consumers who might be interested in doing business with us.  In November of 2013, New Penn placed an order with ********** ***., a leading provider of consumer, financial and property information.  We asked ********* for a list of consumers in the State of Nebraska who are currently paying a Veterans Administration (VA) mortgage loan on their primary residence, which is how New Penn obtained *** **********’s information.  New Penn uses the information obtained for various direct marketing campaigns. 

In accordance with *** **********’s request, New Penn’s marketing department has placed *** ********** on its Do Not Solicit list to ensure he is not contacted by New Penn in the future.  New Penn has also taken the necessary steps to notify the direct mail provider and has been assured that *** ********** will not receive any future solicitations. 

We apologize for any inconvenience that *** ********** has experienced as a result of the unsolicited letter of which he complains.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/17/2013 Delivery Issues | Read Complaint Details
X

Additional Notes

Complaint: I applied for a mortgage refinance with New Penn Financial, most of my contact with regard to the steps necessary to complete my application/ process were with an associate named **** ********. During the course of the application process **. ******** requested several different documents at various times/ which I supplied to him in a timely manner. When all the necessary documents were received and review by **** and New Penn Financial, I was given a verbal approval by **. ******** that everything was in order and that the only thing holding the loan from being approved was the appraisal , I expressed to **. ******** that I was a little uncomfortable paying for an appraisal without any written consent that my loan would be processed/ he assured me that everything was a go!! I ordered or should I say he ordered the appraisal using my credit card / with my consent. The appraisal came back well above the loan amount ( refinancing 170.000/ appraisal of home 750.000). ** ******** contacted be several days later, only to inform me that the loan was not approved. I asked for my refund for the appraisal and was told that was not possible/ I explained to him that he assured me that the loan would go through if appraisal came back positive( which it did) so I asked what the problem was / he referred back to some of the documentation I submitted and stated that it was not sufficient ( mean while when he received the requested documents/ he said everything looks good)- -- then he stated other factors were also holding the loan from being approved. ( Needed to show more income) I feel I mislead by this representative and was assured that it/ the loan would go forth( after appraisal ) So I am requesting a refund of my money and would also like to put on record that at least 2 months of my time and efforts have gone by the waste side!!!

Desired Settlement: Just want the credit for the price of the appraisal that was charged to my ******** credit card.

Business Response:

The attached letter and check were sent to **. ******** as reimbursement for his appraisal fee.  Please do not hesitate to contact me with any questions.  Thank you.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/14/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I was negotiating a loan, that eventually fell through. I have asked for a copy of my appraisal from ***** ********* on 11/20/13. He replied No Problem. Never received it. I asked him again to email me a copy of the appraisal on 11/22/13, no reply. I asked again on 11/25/13 again no reply. As I understand I am entitled to a copy of the appraisal since I have paid for it.

Desired Settlement: I would just like a copy of my appraisal either by mail or email

Business Response: Dear *** ********:
 
In accordance with your request, I have attached a copy of the appraisal of your residence.
 
On behalf of New Penn Financial, I sincerely apologize for our failure to be more responsive to you.  You are completely correct that we had an obligation to provide this document to you in a timely manner.
 
If there is anything else I can do to be of assistance to you, please do not hesitate to contact me directly.
 
 
**** *******, Esq.
CHIEF COMPLIANCE OFFICER
 
************ ***************************************** ************************************************* *********************
Phone:  ###-###-####    Ext. *****
Fax:  ###-###-####    
Mobile:  ###-###-####
 
*****************************
www.newpennfinancial.com
New Penn on Facebook
  
NEW PENN FINANCIAL, LLC  
4000 Chemical Road, Suite 200
Plymouth Meeting, PA 19462
 


Loans will be made or arranged pursuant to the applicable license(s) of New Penn Financial, LLC (“New Penn Financial” or “Lender”), which may be found at www.newpennfinancial.com . New Penn Financial is an “Equal Housing Opportunity” lender with NMLS # 3013. This communication does not constitute a commitment to lend. All loan programs and availability of cash proceeds are subject to underwriting approval.

Interest rates are guaranteed only after a borrower and Lender execute a New Penn Financial Rate Lock Agreement (“Agreement”) specifying the interest rate and other terms of the Loan. Any discussion of interest rate in advance of an executed Agreement should be considered for discussion purposes only. The Lender undertakes no responsibility to advise Borrowers of trends in interest rates or other market factors.

This email may contain privileged and confidential information. The information is intended only for the use of the sender’s intended recipient(s). If you have received this email in error, please contact the sender immediately and delete all copies and attachments

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/6/2013 Billing/Collection Issues | Read Complaint Details
X

Additional Notes

Complaint: New Penn Financial"s subsidiary, ********* ******** Services , will not apply my additional principal payments correctly.

Desired Settlement: I want this problem fixed, I went through this same issue last year with their previous loan servicer, ****** *******.

Business Response:

New Penn Financial, LLC (“NPF”) reached out to ********* ******** Servicing (“*********”) and requested that the problem be addressed in an expeditious manner.  We have been advised that ********* has spoken to the customer and resolved this complaint to the customer’s satisfaction by making the necessary modifications to the customer’s account for proper payment processing moving forward.  If this is incorrect, please let us know.  Thank you.

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me. 

Regards,

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

BBB's Final Determination: Consumer accepted resolution offered by the business.

11/8/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Filed application for mortgage refi Nov 1,2012 with **. ***** ****. 8 months later the mortgage has not closed although approved. Closing has been cancelled 4 times by New Penn,twice at the last minute for various reasons. Latest was on May 24,2013. Supposedly,they needed verification of property taxes and were to obtain on May 28,2013. They once again failed to closed and will not honor the rate lock in of 2.5% which expired on June 3,2013. 8 months to handle a closing is ridiculous and something more may be amiss. Last email correspondence with **. **** he sates that it is only another $30/month which amounts to $5400 over the life of the loan. They have repeatedly run credit searches which lowers our FICO scores. I also have $450 invested in an appraisal and have lost many hundreds of dollars in the past 6 months by paying our current mortgage at a higher interest rate(% 5.05).

Desired Settlement: Compliance the terms of the original application for refi mortgage which they have unilaterally broken on many occasions over the past 8 months.

Business Response:

**. ******* ******

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

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

Dear **. ******:

I am in receipt of the complaint that you filed with both the Better Business Bureau and the Pennsylvania Department of Banking and Securities.  Please be assured that New Penn Financial (“New Penn”) reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  After reviewing your complaint and investigating the surrounding circumstances, I offer the following response:

On or about November 8, 2012, you submitted an application to New Penn for a 15-year, fixed rate mortgage loan in the amount of $207,215 to be secured by the real property located at *** **** ****** ****, *********, PA (the “**** ****** ********”).  (For reasons unrelated to your complaint, your requested loan amount was later reduced to $104,500.)  The purpose of this loan was to pay off the construction loan on the **** ****** ********.  In your application, you stated that you still owned your former residence at *** *** ****** ****** in ********* (the “*** ****** ********”).  Your file was assigned to ***** **** (**** Loan Originator No. ******).

New Penn had ordered your credit report on October 25, 2012.  This report expired on January 23, 2013.  We obtained a second credit report on February 20, 2013 which had an expiration date of May 21, 2013.

On or about November 9, 2012, your interest rate was locked at 2.75%.  On or about November 20, 2012, New Penn received the appraisal valuing the **** ****** ******** at $271,000.  (Pursuant to Fannie Mae guidelines, appraisals expire 120 days from the effective date of the report.  Accordingly, this appraisal was valid through March 20, 2013.)

Unfortunately, an unusual number of complications arose in connection with this transaction.  The initial title work received by New Penn indicated that there were two open mechanic liens attached to the **** ****** ********.  Those items had to be cleared before we could submit a request for a subordination of the second mortgage on the **** ****** ********.  The second mortgage was held by The ************ ********* ********* (*** *******).  New Penn did not receive an executed subordination until February 18, 2013.

Additional delays resulted from your failure to disclose on your application ownership of the real property located at * ********* ****** in ********* (the “********* ********”).  New Penn guidelines provide that a material omission of this nature triggers an extensive review by senior management due to the increased risk of fraud.

Moreover, while your application with New Penn was pending, you contracted to sell both the *** ****** property and the ********* ********.  We were unable to proceed to closing until we recived the HUD-1 settlement statements for the sales of those two properties.  You did not provide these statements to us until March 11, 2013.

New Penn completed its undisclosed property review on March 20, 2013, the expiration date of the appraisal.  We made every effort to get your loan closed that day but we were unable to do so.

The appraiser provided us with a recertification of value on or about April 5, 2013. 

At this point in the process, New Penn cancelled the pending transaction and opened a new file.  You submitted a new application on April 19, 2013.  On the same day, we executed a new rate lock agreement setting your interest rate at 2.5%.  This agreement had an express expiration date of May 29, 2013.

Your loan was conditionally approved on May 10 and cleared to close on May 23.  (A new credit report had to be pulled on May 22 as the previous report had expired.)  At that time, we realized that the tax certification provided to us by ******* County contained incorrect information.  The quoted rate was for the unimproved land.  New Penn did not receive accurate tax information until June 3.  By this time, your rate lock had expired.

As you know, market interest rates began rising sharply in May.  The lowest rate that we would offer you at the end of May was 2.99% with a lender credit.  You declined our offer and filed this complaint accusing New Penn of bait-and-switch tactics. 

There was absolutely no deception involved in this process.  New Penn wanted to provide you with the loan that you requested as much as you wanted to receive it.  As set forth above, the delays in processing your loan were caused by circumstances outside of New Penn’s control.

New Penn sincerely apologizes for any inconvenience you may have experienced during the transaction. However, New Penn firmly believes that, at all times, it processed your inquiry professionally and in accordance with all applicable laws, regulations, and industry guidelines.  New Penn further believes that the loan terms you received are competitive and benefit you as a borrower, as demonstrated by your significantly lower monthly payments.

In the interest of goodwill, New Penn will refund your $450.00 appraisal fee.


If I can be of any further assistance to you, please do not hesitate to contact me at the phone number or email address provided below.

                                                                                    Sincerely,

                                                                                    **** *******

                                                                                    Chief Compliance Officer

                                                                                    ###-###-####

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

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:

The response contains many errors and misrepresentations of the truth. New Penn Financial advertised on the internet and all of the application information was provided to the New Penn Financial representative, **. ***** **** and various associates. The original correspondence from **. **** was dated Oct 25, 2012 in which **. **** stated the process would take 25 days.  We provided all requested information to **. **** via phone conversation,fax and email immediately on their requests. We advised **. **** during the first conversation that we had our home at *** ****** ****** up for sale since we were now living in the newly constructed house and that we had substantial equity in the *** ****** ** property. Also we advised that we had rental property on ********* ****** in *********,PA with equity of approximately $80,000 and advised further that both were up for sale. Whether ** **** failed to properly advise his underwriters of these facts is unknown.  When the properties were sold, we advised **. **** that we would need a lesser amount to pay off the loan balance on the new home which we built and were now living in. He assured us that this would not be a problem.

There was a delay due to what NPF called " Mechanics Liens" on the record. There were no liens against either of the properties and these facts were addressed by letter from our attorney, ** ******* ******* of *************,PA.

Nowhere does NPF address their repeated cancellations of the closing. Twice the notary, ** ***** ***** had made arraignments to be at our home for the closing and both times the closing was cancelled by NPF  a few hours prior to the schedule time for some unknown reasons( phone records are available). On the March 19,2013 scheduled closing, we were at Irwin,PA and made a 70 mile speedy trip to return home at the behest of **. **** only to have the closing cancelled once again 90 minutes prior to the scheduled time. The scheduled closing for May 24,2013 was again cancelled at the last minute because of incorrect tax information although NPF had cancelled checks showing the full amounts paid. The correct information was easily obtainable by fax on the next business date. However, once again, for the fourth time the contract was allowed to expire in advance of interest rate increases.We were never told that the lock would expire and were never offered an option to extend it. ** **** advised that we had to closed by June 3, 2013 after the fact. Once again, New Penn Financial wanted to start  new application process at a 3.00% interest rate- up .5% from the lock which they caused to lapse.  **. **** advised that the increase was insignificant and amounted to $35 per month. The effect would be $6300.00 over the 180 month term of the mortgage. I advised that NPF should bear the cost of he insignificant increases as the delay from the first of November,2012 through the end of May,2013 was due to their bungling,carelessness and or other reasons. Four last minute cancellations and 8 months of delays for minor reasons is unreasonable.

I have now been forced to accept terms from another financial institution at a 3.19% interest rate which make the overall increased costs to us approximately $10,000 over the life of loan.  Any reasonable person would see that the delays were not due to any failures on our part but ,rather were on the part of NPF and its associates. The offer to refund the the $450.00 cost of the appraisal is unacceptable.


Regards,

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








Business Response: I have attached my letter to **. ****** dated August 23, 2013 as well as the exhibits enclosed therewith.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:  The information provided by **. ******* of New Penn Financial is factually wrong. I am forwarding my response and exhibits proving that New Penn Financial bungled the handling of my refi mortgage application by failure to meet time limits, incorrectly handling the details and their refusal to honor the mortgage lock at 2.5% which resulted in the rate being raised thus causing us to suffer a substantial financial loss.

Regards,

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








BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable effort to address the complaint. However the consumer remains dissatisfied.

9/17/2013 Problems with Product/Service
9/9/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: This mortgage lender is deceitful in their business practices. They advertise the lowest rates and easy application process (see website for rate30.com (their affiliate)), however, their true practice is the opposite. We applied for a mortgage with New Penn Financial during the first part of May 2013. We jumped through multiple hoops to provide the documents requested. Every few days a new list of documents was required. To obtain our mortgage, we required a commitment letter by May 31st. They waited until that final day to provide the commitment with the written stipulation that we pay off the mortgage on our current house prior to closing. There were no written requirements regarding how the loan was to be paid off. There were also no verbal explanations of ********* requirements for paying off this mortgage. Since they waited until the very last minute to provide confirmation, we had no choice but to continue our loan process with them. We paid off the current mortgage as requested and informed them that this had been completed several weeks prior to closing. There were then multiple delays in processing the loan to the underwriter. On the business day prior to the closing, when the moving truck was moving furniture out of our house, we were told that the loan would be denied. We met the written stipulation of paying off our current mortgage, we jumped through every hoop they placed in front of us and provided a quick turn around in every instance. It took them over two months from the loan application before they denied the loan and even then they waited until the last possible minute. The entire process was very difficult given the poor communication, lack of information provided to us, and repeated requests for additional paperwork. There lack of organization, poor communication, and "bait and switch" tactics cost us considerable financial loss.

Desired Settlement: We had to obtain a business loan at a higher rate in order to pay off the curent house and purchase the new home. If New Penn had been honest with us from the beginning and explained the process, this could have been avoided and we would have been able to secure financing from a local bank. We are now paying a higher interest rate because of their deceitful business practices. When we complained, the vice president of the company accused us of being dishonest despite the clear written documentation in emails to the contrary.

Business Response:

August 23, 2013

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

Better Business Bureau

50 West North Street

Bethlehem, PA 18018

                                Re: Better Business Bureau ID No. *******

Dear *** *********:

As set forth in detail below, these consumers engaged in deceptive practices as a result of which New Penn Financial, LLC (doing business as Rate30) (“New Penn”) declined their mortgage application.

On or about May 14, 2013, the consumers submitted an application to New Penn for a 30-year, fixed-rate mortgage loan in the amount of $417,000 in connection with the anticipated purchase of the real property located ** ******* ****** ******** Connecticut (the “******* Property”).  Their application was processed by New Penn’s branch office in ********, Maryland.

Although the consumers had very strong credit and the proposed mortgage would have had a low loan-to-value ratio, this transaction was problematic from the outset.  The first difficulty was caused by the fact that, at the time of application, **. ***** had executed a contract committing to a new job that would not begin until August 1, 2013 (after the proposed home purchase).  The consumers asked New Penn to qualify them for the subject loan based upon the income that **. ***** was scheduled to earn in this new position.

New Penn’s underwriting guidelines require production of the first paystub of a new job in order to verify income.  Since **. ***** would be unable to produce such a paystub, under normal circumstances, New Penn would have declined the application from the outset.  However, as a special accommodation to these consumers, New Penn’s CEO and Chief Credit Officer agreed to make an exception and allow the transaction to proceed using the income set forth in the employment contract between **. ***** and his future employer.

On or about May 29, 2013, New Penn’s underwriter suspended the subject transaction because the consumers’ debt-to-income ratio (DTI) exceeded the limit for this loan product.  The underlying cause of the DTI problem was that the consumer’s residence at the time of application (the “************ Property”), which was listed for sale, had not been sold.  The ************ Property was attached with an outstanding mortgage lien of approximately $465,000.

New Penn informed the consumers that it would issue a loan approval explicitly contingent upon the sale of the ************ Property (because the sale would pay off the mortgage on the ************ Property and bring the DTI into line).  The consumers stated that this was unacceptable.  In their opinion, the sellers of the ******* Property would cancel the pending contract if they were provided with a loan commitment that was contingent on the sale of the ******* Property.

The consumers’ complaint was directed to senior management, New Penn’s Regional Manager ******* ******.  **. ****** offered them a compromise whereby the consumers would provide New Penn with written assurance that if the ************ Property was not sold by July 22, 2013 (the time of closing of the ******* Property), they would pay off in full the mortgage on the ************ property. New Penn was aware that the consumers held retirement accounts with more than sufficient assets to pay off that mortgage, if necessary.  A copy of this letter is submitted herewith.

Although not explicitly stated in the letter, it was clearly understood by all parties that, in order to reduce their DTI, the consumers would have to pay off the mortgage on the ************ Property with their own funds.  Going out and getting a new loan to refinance that mortgage obviously would do nothing to reduce the consumers’ outstanding debt and, therefore, have no beneficial effect on the DTI.

Closing of the ******* Property was scheduled for July 22, 2013.

On or about June 28, ******* *****, the processor assigned to the subject transaction, spoke with **. *****, who stated that they were in the process of paying off the mortgage on the ************ Property.  Thereafter, **. ***** delivered evidence that the mortgage had been paid off and advised **. ***** that documentation showing the source of the payoff funds would be forthcoming shortly.  At this point, **. ***** was still under the impression that the consumers were acting in good faith and paying off the mortgage with their own funds.

On or about July 15, in response to the outstanding demand to prove the source of the payoff funds, **. ***** sent **. ***** an updated bank statement.  There were three large deposits on this statement a $750,000 check that was deposited into their checking account. **. ***** provided **. ***** with a copy of the $750,000 check.

On or about July 19, **. ***** spoke with **. ***** and demanded a statement proving that the $750,000 was liquidated from the sale of stocks.  **. ***** said that he could not provide any documentation because he was allegedly on a vacation with his family at a remote location. **. ***** made clear to **. ***** that we needed this evidence immediately.  At this point, **. ***** acknowledged that the source of the $750,000 was a loan secured by his stock portfolio and/or the ************ Property.  Because the consumers’ DTI still exceeded acceptable levels (and because of their deceptive actions), New Penn declined the pending loan application.

It could not be more evident that these consumers acted in bad faith and that New Penn is the aggrieved party in this transaction.  The consumers did not want to incur the capital gains tax that would have been triggered had they liquidated stocks and paid off the ************ mortgage with their own cash.  Accordingly, they flagrantly disregarded New Penn’s guidelines.  When the situation came to a head, they went on the offensive by filing the instant, nonsensical complaint.  Their behavior is contemptible.

Sincerely,

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

******* *******, Esq.

Chief Compliance Officer

New Penn Financial, LLC

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

8/18/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I was referred to New Penn and started the process of refinancing my home. ****** ******** was the agent that was handling my refinancing. ****** assured me an easy quick refinance at a rate around 4.125. After giving him the go ahead he pulled my credit and I gave him all the required paperwork. After a couple weeks and my inquiries he asked for additional paperwork. I received a letter in the mail informing me my credit had been pulled which I knew would happen. Normally I checked in about 5 days after he said he would give me an update. I felt I always gave him more time than he asked for. A few weeks after my initials credit was pulled by New Penn Financial I received another letter informing my credit had been pulled again by New Penn Financial. I asked **. ******** why they had to pull my credit for the second time. He informed me they only pulled my credit once when I initially gave him the OK to. after a few more weeks of getting the run around I decided to started to do my own research. **. ******** told me the only piece he was waiting on was the Mortgage insurance. He told me he has been in contact with the mortgage insurance on a weekly basis and due to the company holding my MI this was holding up the process. When doing my research I talked to another company about refinancing my home but never gave them any information or tried to switch to another company for refinancing. I informed **. ******** that I had spoken to another company in the hopes that this would give him some incentive to finish the refinancing of my home. After another couple weeks I asked **. ******** what the status was. **. ******** informed me that he stopped working on my refinancing two weeks prior because I emailed him and told him to. I pointed out in the emails I saved that I never asked him to which he still denied. I continued with my research about the mortgage insurance. **. ******** gave me the contact of who to call about getting the mortgage information released. Speaking to a gentleman for about ten minutes he informed me that no applications had been submitted about my mortgage insurance since I bought the home in 2007. He also said there was no reason it should take weeks to get the mortgage insurance released. I spoke with **. ******** boss ***** ******** about this issue. He was not any help but more defended the actions of **. ******** even after I explained the issues I have been going through. *Disclaimer. ALL dates and descriptions above are approximation going off memory without researching exact times and dates through my email correspondence. I have already given enough time to this company. Researching and listing the EXACT dates would waste even more of my time then to simply try to address the poor customer service I have received.

Desired Settlement: Finish refinancing my home at the original rate I was quoted while being honest about getting my mortgage insurance.

Business Response:   {Please see attachment.}

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

8/16/2013 Problems with Product/Service | Complaint Details Unavailable
8/12/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I have been working with this mtg company for 6 months. I have provided all information requested in a timely manor. The mortgage company chose an appraiser that did not respond to their questions for 2 months. When they finally followed up on it, it still took 2 weeks to get a response from them. My appraisal expires injury 10th. The file has been closed and ready for the underwriter to give clear to close now since last wednesday. The person that handled the file went on vacation and didn't bother to send it back to underwriting until friday. It has been sitting in underwriting since Friday and I cannot get a response from underwriting,my appraisal is going to expire and they said they wont grant a few day extention .all because the bank never followed up on the appraisal.

Desired Settlement: I want to close on this mortgage before July 10th. This has been the worst treatment i have ever received by a financial institution

Business Response:

Dear *** *********:

 

New Penn Financial provided the ******** with precisely the resolution requested in their complaint.  On Wednesday, July 10, we closed the refinance transaction at issue.  Their new loan is a 30-year mortgage with a fixed interest rate of 4.50%.   The HUD-1 Settlement Statement is attached hereto.

 

 

 

**** *******, Esq.

CHIEF COMPLIANCE OFFICER

 

 

Phone:  ###-###-####

Fax:  ###-###-####    

Mobile:  ###-###-####

 

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

www.newpennfinancial.com

New Penn on Facebook

  

NEW PENN FINANCIAL, LLC  

4000 Chemical Road, Suite 200

Plymouth Meeting, PA 19462

 

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

5/30/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: The company promised that closing cost for my refinance would be 150 dollars and loan amount would be the payoff amount. However, at the closing day they revealed that I will be paying about 2000 dollars more on top of the 150 dollars. As a result the closing was cancelled and since I was out of the mortgage market I missed the opportunity to lock a good rate with any other lenders. On top of that I am now stuck with 450 dollars that they charged my credit card for getting an appraisal done, which is useless now.

Desired Settlement: They should refund me for the appraisal at the minimum and apologize for lying to try to keep my business from going elsewhere.

Business Response:

Re:                   New Penn Financial File No. ***********

                        Better Business Bureau File No. *******

Dear *** *****:

I am in receipt of the complaint that you filed with the Better Business Bureau.  Please be assured that New Penn Financial (NPF) reviews all consumer complaints carefully and makes every effort to reach a fair and amicable resolution.  I have assessed the complaint as well as your loan file and offer the following response:

You submitted an application to NPF on or about April 11, 2013 requesting a loan to refinance the existing mortgage on your residence located at *** ******** ****** ******* ******** **.  As evidenced by the documents submitted herewith (loan application, Good Faith Estimate (GFE), Rate Lock Agreement), you requested a 15-year mortgage in the amount of $174,500.  At this time, you signed a lock agreement accepting an interest rate of 2.875%.

You would have qualified for a lower rate but you insisted that you did not want your new loan amount to be higher than the payoff amount of your existing mortgage with ******** **** ($171,966.90 as of April 30, 2013) so as to minimize the cash you would be required to bring to closing. In accordance with your express wishes, NPF agreed to provide you with a lender credit in the amount of $2,413.13.  (See page 4 of the application submitted herewith.)  A lender credit, of course, results in a higher interest rate.

Your loan officer (**** **********) and his manager (******** ********) repeatedly advised you that if the interest rate was more important to you than the cash to close, NPF could reduce the locked interest rate.  A rate reduction, however, would require NPF to reduce the lender credit. On multiple occasions, you reiterated your position that your first priority was minimizing the amount of cash that you would pay at closing.

In spite of the foregoing, on May 2, 2013, you sent the following email to NPF:

“Here's a question. When I had initial mortgage, I had the option to re-lock the mortgage to a lower rate within 30 days. I see that rates have come down. So it would be better for me to re-lock.  I have also seen many companies and very likely yours as well are offering a better deal now.  If all else fails I can walk away from the deal. I think the rate should go down by .25 points.”

Upon receipt of your email, NPF agreed to lower your interest rate to 2.625%.  As set forth above, this reduction in rate would eliminate the lender credit that NPF could provide to you.  On Friday, May 3, *** ********** called you to review the revised loan terms.  He explicitly advised you that, at the lower interest rate, you would be required to bring about $2,300 in cash to closing.  You also discussed the fact that since we were planning to close on Monday, May 6, you would not have to tender the May payment on the Everhome (payoff) mortgage.  Finally, the first payment on the new NPF mortgage would not be due until July 1.  Since you would not need to make a mortgage payment in May or June, you expressly agreed to the revised terms. 

NPF then informed you that since you were now going to be required to bring more money to the closing, you had to provide us with bank statements so that the NPF underwriter could verify these funds.  You forwarded a bank statement to *** ********** on the same day (May 3).

On May 6, 2013, NPF conditionally approved your loan application.  (There was a delay in processing caused primarily by Uwchlan Township’s failure to provide NPF with accurate information regarding the property taxes.)  We were scheduling your closing for that evening.  Since we did not yet have the final HUD-1 Settlement Statement and thus did not know the precise dollar amount that you would be required to bring to closing, *** ********** suggested that you obtain a certified check payable for $2,000 payable to the title company.  You then could write a personal check for the difference (approximately $300). You were amenable to this.  *** ********** received the final HUD-1 on Monday evening and called you to review the final figures.  At this time, you insisted that closing costs should not exceed $150.  This was the first time that you expressed the sentiments set forth in the complaint that you submitted to the Better Business Bureau.  In accordance with your request, NPF cancelled the entire transaction.

By reason of the foregoing, NPF strongly believes that the allegations of your complaint are untrue and that you are not acting in good faith.  You acted upon your threat to “walk away from the deal” because you believed that the market had moved in your favor.  It is the nature of the market that both lender and borrower bear the risk that rates may shift while a mortgage loan application is in process.  If anyone is guilty of the kind of "bait and switch" tactics described in your complaint, it would be you.

NPF believes that, at all times, it processed your application professionally and in accordance with all applicable laws, regulations, and industry guidelines.  In spite of this, we have decided to refund the $450.00 appraisal fee paid by you in connection with your mortgage application.  You will receive a check in that amount no later than June 8, 2013.

Sincerely,

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

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

Chief Compliance Officer

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

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and even though I do nit fully agree to their  version of facts, I find that this resolution is satisfactory to me. 

Regards,

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

BBB's Final Determination: Consumer accepted resolution offered by the business.

5/30/2013 Advertising/Sales Issues | Read Complaint Details
X

Additional Notes

Complaint: ** **** **** of New Penn Financial, LLC has sent me couple of commercial letters soliciting for mortgage refinancing. I have called *** **** three times ****************. Every time, I found him not available in office. I left a lady a message telling *** **** not to send me any soliciting letters, removed my name from the mailing list. Today (May 15) I got another soliciting letter from *** ****. I do hope this complaint is going to stop this.

Desired Settlement: Don't want to receive any commercial letter(s) from this company (New Penn Financial, LLC).

Business Response:

On behalf of New Penn Financial, LLC (NPF), I apologize to the complainant for the inconvenience that we have caused him. NPF uses software designed to purge our databases of the names of individuals who ask to be placed on our Do Not Contact list. Occasionally, due to human or computer error, someone like **** *** receives an unwanted communication.

I can assure **** *** that NPF has addressed the instant problem and that he will never again be contacted by NPF or any of our employees unless he solicits us. I am including my personal contact information below so that he can reach out to me directly if he should ever need further assistance relating to his complaint.

 

Sincerely,

 

J****** ** ******** ****

Chief Compliance Officer

New Penn Financial, LLC

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

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

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me. 

Regards,

**** ***

BBB's Final Determination: Consumer accepted resolution offered by the business.

5/15/2013 Advertising/Sales Issues | Read Complaint Details
X

Additional Notes

Complaint: Yesterday I received a letter from New Penn Financial and ****** ******. The letter is advertising her service attempting to help me to finance my home. I contacted my lender such as **** ** ******* since owning my house in 2008. The bank told me that I was not able to refinance my home since I put down 5% equity loan only. I advised ****** ****** last year and before to STOP harassing me by NOT sending me any more solicitation mail from her or her company. ****** ****** refused to follow my instructions and continued to send me more letters and solicitation mail and constantly harassing me. This is NOT a very good way to conduct business from a professional stand point as a result of ****** ******'s actions. *** ****** should be more professional by following a consumer's advice by STOP sending solicitation mail and leave the consumer alone. And this is a definite sign of pure blatant harassment case perpetrated by *** ****** after being warned NOT to harass a consumer again.

Desired Settlement: I REALLY want ****** ****** to remove my name off of her mailing list. I want ****** ****** NOT to sell my personal name and information to other companies in order to make her money. And I REALLY want ****** ****** to STOP sending me any more solicitation mail and STOP harassing me. All this has to STOP as of now on April 17, 2013.

Business Response:

On behalf of New Penn Financial, LLC (NPF), I apologize to *** *** for the inconvenience that we have caused him.  NPF uses software designed to purge our databases of the names of individuals who ask to be placed on our Do Not Contact list.  Occasionally, due to human or computer error, someone like *** *** receives an unwanted communication.

I can assure *** *** that we have addressed the instant problem and that he will never again be contacted by NPF unless he solicits us.  I am including my personal contact information herein so that *** *** can reach out to me directly if he should ever need further assistance relating to his complaint.

Thank you.

**** *******
Chief Compliance Officer
New Penn Financial, LLC
(
**** ******** **** **** *****************************

 

 

Consumer Response: All I want from New Penn Financial at this time is to contact ****** ****** located at **** ******* ****** ***** **** ********** ** ***** ***** ******** and tell her to STOP harassing me by STOP sending me her business cards and "junk" mail cramming up my mailbox. ****** ****** is the main suspect of this case because she repeatedly harassing me and never apologize to me after blatant constant harassment by sending me 5-10 mail letters within the past 6 months. This is considered pure blatant harassment perpetrated by ****** ******. I told her to leave me alone and she still sent me more letters and harassing me. I want this harassment to STOP forever and I want ****** ****** to STOP harassing me.

I am rejecting this response because:


Regards,

**** ***








Business Response: ****** ****** is an employee of New Penn Financial.  Our previous response encompasses the assurances that the complainant demands. 

Consumer Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:

I want ****** ****** to STOP sending me "junk" mail and I want her to STOP harassing me permanently. Her harassment is very annoying. ****** ****** shows signs that she is a very aggressive woman and she likes harassing customers.

Regards,

**** ***








BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable effort to address the complaint. However the consumer remains dissatisfied.

4/28/2013 Problems with Product/Service
4/27/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: On Jan 30th I was approved for a loan and asked to deposit $540 for the insurance portion of the loan which I did. I was then told that the loan was declined by the lender because he wanted more money depsited to the account. When I refused they told me that my loan application could not be processed so I asked that the loan be terminated. This is a copy of the email that I received *** *******, Good morning. Your account has been terminated as of February 14, 2013. You will be receiving your refund as a certified cheque via mail. Within two weeks, expect a phone call from an agent within our refund department. Once again I apologize for the inconvenience this has caused you. -- Sincerely, Loan Agent: ******* **** Office phone: ************** Office Fax: ************** Email: *********************** Visit us at: *********************** Since I received this email I have not received any more contact by either email or phone. I have kept copies of all of my emails that I have sent. Since then I have sent emails on Feb 15 2013, Feb 26 2013, Mar 7 2013, Mar 13 2013, Apr 10 2013, and Apr 11 2013. Not to mention the number of phone calls. If required I can provide you with all of the emails that I have regarding this issue.

Desired Settlement: I was promised a refund by certified check as per the above email from ******* ***** I expect to be refunded the entire amount because the loan was never activated by the company and the funds that were deposited by me were for insurance. They have held on to my money for far to long. Thank you.

Business Response:

This consumer has not been dealing with our company, New Penn Financial, LLC (NPF).  NPF does not transact business in Canada

Unfortunately, this consumer has been victimized by a fraudulent scheme. 

Consumers who click online ad banners are directed to *******************, which purports to be a debt consolidation/personal loan company.  After application online, the consumer target is contacted and presented with a personal loan approval letter and Loan Contract.  The target is asked to provide “loan collateral” via wire transfer in order for the loan to fund. 

In early February 2013, some targeted consumers living in Ontario, Canada contacted NPF to confirm if this was legitimate activity.  Alerted to this, NPF contacted the FBI and was instructed to file a complaint and to direct any consumer who contacts NPF regarding this issue to also use FBI’s IC3 website to file a complaint.

The ******************* website does not have any similarities to newpennfinancial.com, however the non-existent contact address provided on its website is so close as to be purposely confused with the NPF ******** ****** ** location. 

 

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

4/7/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: Complaint In my opinion, New Penn Financial, through its agent ****** *******, played a “bait and switch” mortgage game on me. Knowing that I had another mortgage application already in process, *** ******* quoted me a lower rate of 3.375% for a 30 year fixed rate mortgage refinance on my home. After I withdrew my application with the other lender, *** ******* then informed me that he had made a mistake and the rate would really be 3.5% and sent me another Rate Lock Agreement to replace the 3.375% agreement that I had signed. Then, regularly assuring me that the application was complete followed by demands for more documentation, *** ******* delayed our settlement. *** ******* assured me as late as March 8th for a March 13th settlement, that all was in order to close on or before the expiration date. The day before the March 13th expiration of the 3.5% Rate Lock, New Penn through *** ******* and others from New Penn, informed me that the settlement could take place on March 14th or 15th but only if I would agree to a 3.625 % annual rate.

Desired Settlement: Closing of the mortagage at the agreed rate of 3.375% for 30 years fixed within 30 days.

Business Response:

New Penn Financial, LLC (NPF) has provided *** ***** with precisely the resolution requested in her complaint.  On Tuesday, March 26, we closed the refinance transaction at issue.  *** *****’s new loan is a 30-year mortgage with a fixed interest rate of 3.375%.  NPF fully honored the terms of the Good Faith Estimate (GFE) that *** ***** received at the time of application.  (The GFE and the HUD-1 Settlement Statement are submitted herewith as evidence.)

The circumstances that gave rise to *** *****’s complaint are as follows:

On or about February 1, 2013, when she first approached NPF to inquire about a refinance loan, *** ***** was looking to pay off both a first and second mortgage on her residence.  Under industry underwriting guidelines, the money used to pay the junior mortgage must be treated as cash out to the borrower (even though the borrower does not actually receive these funds as cash).  Accordingly, the loan should have been priced as a cash-out refinance, which is more expensive than a loan with no cash out.

NPF erroneously disclosed the loan to *** ***** with an interest rate of 3.375% and issued a rate lock agreement quoting 3.375%.  We should have disclosed a rate of 3.50% for this loan product.  When situations such as this arise, in accordance with applicable state and federal law, it is NPF’s practice to absorb the cost of our own mistakes.

However, on or about February 28, 2013, due to a miscommunication between our sales department and our disclosure department, the loan was re-disclosed at 3.50%. Our disclosure department believed that *** ***** had requested a change in loan program from no cash out to cash out.  If this had, in fact, been the case, it would have been a cognizable change of circumstances under the Real Estate Settlement Procedures Act (RESPA) thereby justifying re-disclosure.

*** ***** was justifiably upset when she received these new disclosures.  NPF sincerely apologizes to her for our error.

As set forth above, when *** ***** brought the problem to light, NPF honored all of the terms of the GFE she received on February 1.

*** ***** also complains about delays in processing this loan during the month of March.  We believe that she now understands that we encountered some complications while we were verifying her personal tax returns as well as the tax returns of a business that she owns with her husband.  These delays were not caused by any negligence of the part of NPF.

In conclusion, NPF is pleased that we were able to provide *** ***** with a loan that reduced her fixed interest rate from 5.75% (on the first mortgage that was paid off) to 3.375%.  Her monthly mortgage payment of principal, interest and property insurance has concomitantly been reduced from approximately $1,559 to approximately $787.

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me. 

Regards,

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

BBB's Final Determination: Consumer accepted resolution offered by the business.

3/27/2013 Problems with Product/Service | Read Complaint Details
X

Additional Notes

Complaint: I refinanced my mortgage with New Penn Financial in Aug of 2012. Since then I have made all of my mortgage payments on time. In addition I have sent them an extra 1000.00 a month to pay down my principal. When they receive my payment, they apply the 1000.00 to my next months payment instead of applying it to my principal. I have called their customer service dept. repeatedly and they tell me unless I do an automatic deposit that this is the way their system is set up and I will not be able to make additional payments to the principal on my mortgage. This is in violation of my mortgage agreement with this company. I have been treated very rudely by their so-called customer service dept. and I have not been able to reach a satisfactory settlement of this dispute.

Desired Settlement: I would like New Penn Financial to honor our mortgage agreement and credit my payments accordingly and not screw up my account every month.

Business Response:

The complaint objects to the manner in which ****** *******, the loan servicer, has been applying the consumer's monthly mortgage payments. There are no allegations against New Penn Financial (NPF), the company that originated the subject loan.
 
As evidenced by the attached, the consumer did contact his NPF loan officer to inquire as to whether NPF could assist him with this matter. In response, two of NPF's employees reached out to ****** and requested that they address this problem in an expeditious manner. We have been advised that ****** has now resolved this complaint to the consumer's satisfaction. If this is not correct, please let us know. Thank you.

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me. 

Regards,

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

BBB's Final Determination: Consumer accepted resolution offered by the business.

3/18/2013 Problems with Product/Service
3/16/2013 Problems with Product/Service
1/10/2013 Problems with Product/Service
1/10/2013 Problems with Product/Service
1/5/2013 Advertising/Sales Issues
1/4/2013 Advertising/Sales Issues
11/30/2012 Problems with Product/Service
11/26/2012 Problems with Product/Service
10/25/2012 Problems with Product/Service
10/17/2012 Billing/Collection Issues
10/9/2012 Problems with Product/Service
9/2/2012 Problems with Product/Service
8/23/2012 Problems with Product/Service
8/8/2012 Advertising/Sales Issues
7/14/2012 Problems with Product/Service
5/19/2012 Problems with Product/Service
3/10/2012 Advertising/Sales Issues
3/6/2012 Problems with Product/Service
1/28/2012 Problems with Product/Service
12/13/2011 Problems with Product/Service
11/28/2011 Problems with Product/Service
9/26/2011 Problems with Product/Service
1