I am a broker and received a pre approval from Accredited Home Lenders for some young, first time home buyers looking to get a 100% purchase loan. My pre approval came back with a 6.65% interest only loan on the first, and a 9.75% on the second. It was requested as a 80/20 loan. I am very meticuluous in my pre approval preparation in that I provide credit, a complete application and income documentation. Essentially, everything a representative needs to see if they meet minimum guidelines in order to proceed, order an appraisal, etc.
After coming back from underwriting, the loan was downgraded to 90% of the purchase price and an interest rate of 7.99% on one loan only. What was horrible about this particular scenario, is that the loan was downgraded for information that was clearly available to the lender rep one month prior to this. When I immediately contacted the representative concerning this, she took this very cavelier "oh well" attitude. I worked with many reps, and I have never seen anything like this. For all of you brokers out there, I am not talking about an over sight that any of us could make or something that showed up in underwriting that was not apparent during the pre approval process. It became very obvious during a review of the facts that the representative never even bothered to review the information about the borrower's profile during the pre approval process. For the record, FREMONT approved this as a 100%, 80/20 loan that Accredited could not do.
When I elevated this issue with middle and upper level managers at Accredited, it was very obvious that no one was serously interested in addressing what I would call gross negligence by one of their representatives. Needless to say, I am not impressed with Accredited's culture of indifference and arrogance and will never bring a loan to this company again.
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