Update: lender conditions just get nuttier

I don’t make this stuff up folks.  It is getting to the point where I think loan officers need to seriously think about who they do business with.  It matters zero how low the rates are for this lender if they can’t close or create an atmosphere where it is so difficult to work with that it places stress on your long term business relationship with your customer:

A fully executed, signed and on-time delivered loan package was rejected resulting in a full re-draw due to:

“the vesting on the Deed of Trust said, Husband and Wife, instead of Wife and Husband.”

This is an extremely easy fix, but yet it was rejected.   No progress was made in trying to convince the lender how absurd this was nor how foolish the lender looks to the professionals involved in closing the transaction, never mind how dumb they look to the borrowers who have every right to request another lender.  This places the borrowers loan lock in question and adds expenses including wastes an unbelievable amount of time that could be spent on transactions placed with lenders that have their act together.

12 thoughts on “Update: lender conditions just get nuttier

  1. Classic lender BS. I am still hearing all sorts of similar horror stories all over town. When will these lenders wake up and realize they are harming perfectly good transactions? Maybe never? Let’s hope they get it – and SOON!!

  2. Yes Michael, and today I had to meet our clients again downtown at the Columbia Center to sign documents all over due to the above referenced absurd and ridiculous condition. Wasted 3 hours of time that robbed other transactions from being worked on. Sometimes, these lenders don’t realize how much time is wasted or inconvenience they cause their very own customers.

  3. Tim, you have got to be kidding.

    Send that lender a letter and a bill, overnight mail, direct to the CEO, and cc all the parties involved in your transaction (from that mortgage company).

    You probably won’t get a payment, but you might actually get a letter back, and at least an acknowlegement that there is a problem. I’ve written many very nice, but pointed, letters over the years, and I’d say that 80% of the time, I get a response when I send the letters overnight mail. Sometimes I just email them direct to the CEO’s admin assistant, and that often works too.

    My feeling is that if we never complain to the top, how would they know what is happening?

    Even though your business is small, you want to know what issues happen. I believe wanting to know is more than half the battle.

    Of course, I’m one to believe that working with small businesses is going to be the key to getting us out of this recession. Control who you work with whenever possible, and the outcome will always be better :-).

    • Leanne,

      I hear ya. California lender. Believe me, if you peruse the mortgage industry blogs and forums, stuff like this get’s around quickly. At some point, the AE’s (acct. exec’s) who peddle their loan products to local mortgage co’s will have to answer for this nonsense.

  4. Tim, you have got to be kidding.

    Send that lender a letter and a bill, overnight mail, direct to the CEO, and cc all the parties involved in your transaction (from that mortgage company).

    You probably won’t get a payment, but you might actually get a letter back, and at least an acknowlegement that there is a problem. I’ve written many very nice, but pointed, letters over the years, and I’d say that 80% of the time, I get a response when I send the letters overnight mail. Sometimes I just email them direct to the CEO’s admin assistant, and that often works too.

    My feeling is that if we never complain to the top, how would they know what is happening?

    Even though your business is small, you want to know what issues happen. I believe wanting to know is more than half the battle.

    Of course, I’m one to believe that working with small businesses is going to be the key to getting us out of this recession. Control who you work with whenever possible, and the outcome will always be better :-).

    • Leanne,

      I hear ya. California lender. Believe me, if you peruse the mortgage industry blogs and forums, stuff like this get’s around quickly. At some point, the AE’s (acct. exec’s) who peddle their loan products to local mortgage co’s will have to answer for this nonsense.

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