In May my wife and myself called a Mortgage Company (Affordable Interest Mortgage Co) aka A I M, after receiveing letters from them about refinancing our house. Keep in mind they are a member of the Tom Martino referal list.
We enquired about a second mortgage at which time we were led to believe that streamlining the first mortgage would put us in a better position for the second.
Upon review of Good Faith Estimates on both the first and second, we agreed upon refinancing the first at 6 1/3% with a buy down of 1/2 percent to a 6% loan, the second at 8% for 15yr term and pay for an appraisal on the second, with no other fees for the second.
Throughout the process we questioned the second being approved as we would not want the first mortgage if the second was not approved. Many times (including at the closing table) on the first mortgage we were assured that there was no problem with the second and it would be fine. On good faith we trusted our so called broker.
At the closing table there were errors on the documents. There was a charge for 1% point on the buy down instead of 1/2% point of the interest rate and the appraisal fee was added to the first mortgage. When questioned about this, the broker stated he was paying both the 1/2% and the appraisal fee and that was why we were not required to bring money to closing. During this whole process there was not a representative from Chicago Title. The broker stated that they were too slow and often times he did all his closings himself.
We also questioned why we were not closing the second mortgage. At this time we were told of the three day right to recision which prohibited the second closing as that would be considered cash out and FHA does not allow this. Again he stated that we didnt need to worry about the second mortgage loan because it was already approved through the Bank. All we had to do was close on the first then after three days we would close on the second.
Three days past and we did not cancel the first mortage. On the fourth day when we were to close on the second, we contacted the broker who stated he needed a second copy of current pay stubs. Oddly enough we had already given him our paystubs in order to close the first. On the second and third day following the recision date we called the broker who stated he had not heard anything from the underwriter. We again reminded the broker that we would never have done the first mortgage if the second was not approved. He stated it still needed to go through underwriting.
The fourth day after our right to recision expiration date we still had not heard from the broker. We called the owner of AIM and expressed our frustrations and concerns about the second mortgage not being closed when one of his representatives verbally guaranteed us that it would close. Even after receiving a Good Faith Estimate.
The Owner stated that he couldnt say what his representative told us or didnt tell us but he could say that a Good Faith Estimate doesnt mean anything its not even worth the paper that its written on. He then said that he could get me a loan at 12% for 30 years, for a fee of course, if I wanted. I said NO I want the 8% loan your company said we were already approved for. He then said he would call me back in one day by 12 noon with an answer.
The next day we didnt here from AIM so we called the bank who AIM said had approved our loan (US Bank) The bank told us they couldnt discuss the situation with us because we went through a broker, then they told us we should of went through the bank instead of a broker. But the had only received our application today so it was still in review.
Well I imediately called AIM and asked for the Owner. He got on the phone and said your loan wasnt approved because your score was 4 points too low. I said what do you mean, the bank just told me that it was in review, he then said NO the Bank told him that it was declined because I was four points below a 680 score and the Bank didnt do loans for someone with a score below 680. I then said well maybe may score dropped because you sent my first loan out to 30 diffrent banks who all pulled my credit in the last month. He then stated sorry I cant help you and hung up.
So obviously Affortable Interest Mortgage Co. Will lie to you to no limit just to RIP YOU OFF, and they certainly dont care if we got a second mortgage or not, In fact they never aplied for a loan for us until I called the Bank in question, and what do they care they got my 5000.00 dollars from my first loan.
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