After sending a request through Lending Tree for a refinance, I received a call from Guardian about 10 minutes later. The representative with whom I spoke seemed helpful and very eager to make things easy for me. Due to the nature of the purpose of the loan, I was relieved that the actual process wouldn't be so difficult if I chose this company as he was willing to do most of the dealings by phone, fax, and email.
I was promised that we could get the loan closed in 7-10 days.
In that first conversation, ironically, he directed me to usacomplaints.com to see that there were few, if any, entries about the company. That is why I am writing this report. I know that he will continue with the practice of referring potential customers here.
After my husband and I made the decision to get things rolling, we sent in our documentation by fax. Things were unbelievably easy. The representative accepted just about any form of proof of income if I couldn't find what he requested. It seemed to good to be true.
One day, I was too busy to contact the representative, even though nothing was pressing, he called me the following day to nervously inform me that we hadn't spoken in a couple of days. I explained that it hadn't been all *that* long.
After that, I became somewhat uneasy. When he faxed over the form for us to sign that released him to get the payoffs for my car and existing mortgage, I dragged my feet. I just wasn't feeling as confident with him due to all his frenzied rushing of our process and the pressure he put on due to multiple phone calls and emails.
I am glad I did.
A day or two after he faxed the release statement to my husband, I received the Good Faith Estimate in the mail.
Now, I know, I should have asked to have it faxed. I know the things that I did to contribute to this situation but, I am sure that, if I did it, others might too.
The Estimate listed the origination fee as $5995. That's right. Just under $6000 for origination fees. Add that to the nearly $1000 in processing as well.
Now, this may not have come as such a shock, but, he sang the praises of his company and their lower fees because all of their loans are "in house"- as in, they lend their own money and don't sell their loans.
The total closing costs including fees and whatnot was over $9700. The loan itself was for $135,000.
The next day, I asked around to see if that was too much. I was met with incredulous stares and bulging eyes from the people I asked. My answer was a unanimous "yes".
But, I had already had the house appraised because the representative wanted to close already.
So, I had to start all over. I went to see the man who brokered our first mortgage. He charges 1% as an origination fee. He took a look at the GFE and he told me that even the county fees were padded. He couldn't believe that anyone would have the gall to charge so much for origination.
Also, I showed him the "Truth in Lending" statement. He said that there was no truth in it at all. He said that there is no way that he could produce what that statement promised.
We are now in process with the old broker - whom I should have gone to in the first place. Our closing costs are literally half and we actually decided to take more cash out. So, we are getting more for less.
After I agreed to get the loan through the broker, I emailed the rep from Guardian.
" (Rep's name),
I received the Good Faith Estiimate in the mail on Wednesday night. After going over it, I am quite uncomfortable with some of the closing fees. I realize that they will be rolled into our loan, but, there is a limit to what I feel is acceptable.
$6000 for a loan origination fee is way past that limit. The traditional fees are usually between 1-3% and $6000 is $1500 above even the 3% fee.
I am sure it is a company policy that sets these fees, so, I cannot assume that there is any room for negotiation on that. Sephanie In consideration of that, I have checked with my previous broker and he charges the 1% fee for origination. I also know that he did a great job for me in the past.
I am sorry that you have spent time on this loan thus far. Had I been advised of the closing costs or received the good faith estimate sooner, it would have saved a lot of trouble.
Thanks for your help. I wish you good health in the New Year.
Signed, Me"
What I received back was a bit odd. He went from professional and courteous to somewhat crazed. Keep in mind when reading this email that he sent it and called my house twice in the space of 15 minutes:
" (My name), we can more than lower that fee. I can lower it by almost 2000 dollars. Your broker charges that but he also charges other "hidden fee's" I guarantee it. He splits up all the costs and charges a lot more broken up fee's. Trust me. We are a lender not a broker and
the hidden fee's they charge are ridiculous. I can lower your fee a lot call me and we can work it out. You will have your cash out and everything paid off by Tuesday.
Please call me. Brokers charge so many more fees and take so longer to close your loan. I have your loan ready to close NOW. With almost 2k cut off the fee. Please call me asap"
He also promised to lower my interest rate in the message he left about 2 minutes after this email was recieved.
Long story short, he never wanted me to get the GFE in the mail before closing. He wanted us to find out about the closing costs when we were at the closing table. That's why he rushed us so much and that's why he panicked when he found out that I had received it and wanted to back out.
I know that I should have asked for the GFE up front. It was my mistake not to do so. But, I know that he was making it so easy and quick so that I wouldn't have time to or wouldn't feel like I could back out.
I am writing this so that anyone who gets referred to usacomplaints.com by this company will see this and be wary. Don't make the mistake that I almost did.
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