This company really fouled this loan up bad. On July 15 I submitted an application to Washington Mutual Bank Riverside for a Fixed 15 year re-finance Mortgage.
The interest rate I locked in for 60 days was 4.375 (APR. 4.682) the loan amount was $147,500.00. I also paid an application fee of $295.00. I submitted all items (documents) on the "Borrower Checklist" that same day. This list included such items as W-2's, recent paystubs, bank statements for 2 months, proof of Mortgage, proof of insurance. I provided all the information for my wife, Maria and me.
On Aug. 11 2003 I received a Notice of incomplete application letter from Stephanie Young, the loan officer processing my application. She requested " borrower to provide 2001 W2 to average income" This was the only item listed. This puzzled me because this item was not requested on the borrowers checklist I submitted on July 15. I personally brought the item to the branch on Aug 18 (since I was out of the country for two weeks: Aug 4 to 15).
In that same time I received a copy of my loan escrow instructions from New Century Escrow Co. Another document by the same company states the estimated closing date at 9/03/03.in the first week of September I called Stephanie to find out the status of my application. She told me that she was waiting to hear from the underwriters. She said they were having problems with personnel. I expressed my concern about not closing the loan within the 60-day lock period, which was to expire on September 15. She told me if we go past the lock date that they would extend it at no cost to me.
She did not say for how long and I never received any written confirmation to that effect. On September 15 I received a Commitment Letter. This letter contained approval of the loan and the original interest rate of 4.375. The expiration date for this letter was Oct. 12 2003. On Oct. 7 I received a call from Stephanie sating there was a line of credit on the property that had to be cancelled. This was an equity line for $24,300.00 that I never used in the 13 months I had it.
I went to Bank Of America that day to cancel the account and pay a $400.00 early cancellation fee. I brought this documentation to Stephanie that same day.in talking to her she stated this documentation would be suffient. I again expressed my concern with the process taking to long. She said she was sorry and that I would sign my loan documents soon. On Oct. 11 2003 I received a phone call from a loan officer In the Pedley branch of Washington Mutual named Sara Durazo, assistant manager at the branch. She told me that I would sign my loan documents on Oct. 13 2003 at New Century Title Company in Riverside.
Upon reviewing the documents both I and the notary who handled the signing of documents noticed the closing date Oct. 12 2003 on the form. She was not certain why we were signing docs a day after the closing date. Nonetheless, we signed loan documents and closed escrow with no change in rates. Eight days later on Oct. 20, I received a call from Stephanie saying we need to come in and sign a NEW good faith estimate.
I was confused because I had already signed one back on July15 This "new" good faith estimate still contained some of the same figures as on the original like the interest rate of 4.375, loan amount of $147,500.00 and a monthly payment of $1,118.97 (P/I only). Though I did see an increase in the Loan Origination fee of $2212.50 to $2581.25. Also the new estimate included property tax Assessments of $252.60 monthly. The top of this form showed it to be a fax copy dated 10/17/03.
I disputed the property taxes added to the mo. Payment. Since the beginning of the application I stated that this loan is not to be an impound account. When she reviewed her docs she noticed I hope you can help me. On July 15 I submitted an application to Washington Mutual Bank - Riverside for a Fixed 15 year re-finance Mortgage. The interest rate I locked in for 60 days was 4.375 (APR. 4.682) the loan amount was $147,500.00. I also paid an application fee of $295.00. I submitted all items (documents) on the "Borrower Checklist" that same day.
This list included such items as W-2's, recent paystubs, bank statements for 2 months, proof of Mortgage, proof of insurance. I provided all the information for my wife, Maria and me. On Aug. 11 2003 I received a Notice of incomplete application letter from Stephanie Young, the loan officer processing my application. She requested " borrower to provide 2001 W2 to average income" This was the only item listed. This puzzled me because this item was not requested on the borrowers checklist I submitted on July 15. I personally brought the item to the branch on Aug 18 (since I was out of the country for two weeks: Aug 4 to 15).in that same time I received a copy of my loan escrow instructions from New Century Escrow Co. Another document by the same company states the estimated closing date at 9/03/03.in the first week of September I called Stephanie to find out the status of my application. She told me that she was waiting to hear from the underwriters. She said they were having problems with personnel.
I expressed my concern about not closing the loan within the 60-day lock period, which was to expire on September 15. She told me if we go past the lock date that they would extend it at no cost to me. She did not say for how long and I never received any written confirmation to that effect. On September 15 I received a Commitment Letter. This letter contained approval of the loan and the original interest rate of 4.375. The expiration date for this letter was Oct. 12 2003. On Oct. 7 I received a call from Stephanie sating there was a line of credit on the property that had to be cancelled. This was an equity line for $24,300.00 that I never used in the 13 months I had it. I went to Bank Of America that day to cancel the account and pay a $400.00 early cancellation fee. I brought this documentation to Stephanie that same day.in talking to her she stated this documentation would be suffient. I again expressed my concern with the process taking to long. She said she was sorry and that I would sign my loan documents soon. On Oct. 11 2003 I received a phone call from a loan officer In the Pedley branch of Washington Mutual named Sara Durazo, assistant manager at the branch. She told me that I would sign my loan documents on Oct. 13 2003 at New Century Title Company in Riverside.
Upon reviewing the documents both I and the notary who handled the signing of documents noticed the closing date Oct. 12 2003 on the form. She was not certain why we were signing docs a day after the closing date. Nonetheless, we signed loan documents and closed escrow with no change in rates. Eight days later on Oct. 20, I received a call from Stephanie saying we need to come in and sign a NEW good faith estimate. I was confused because I had already signed one back on July15 This "new" good faith estimate still contained some of the same figures as on the original like the interest rate of 4.375, loan amount of $147,500.00 and a monthly payment of $1,118.97 (P/I only). Though I did see an increase in the Loan Origination fee of $2212.50 to $2581.25. Also the new estimate included property tax / Assessments of $252.60 monthly. The top of this form showed it to be a fax copy dated 10/17/03. I disputed the property taxes added to the mo. Payment. Since the beginning of the application I stated that this loan is not to be an impound account.
When she reviewed her docs she noticed this an error on the part of bank. She encouraged me to sign the document and that she would make the necessary corrections so I signed. I thought this was a final conclusion to the re finance. But on November 4 Stephanie called again me to say that the lock in rate of 4.375 was no longer valid. She said that time had expired. I questioned how this could be when I had already signed escrow documents on Oct. 13, the day you assigned. I said that any delay in the total process was not of my doing. That I in fact tried to speed up the process by numerous phone calls and visits to their office to check on the progress. I informed her on my previous re-fi's, the last one only a year ago, which took about 30 days with no complications. She told that it was not my fault that it was "the crazy re - fi market".
She told me the interest rate on my loan would increase to 4.875 with 1.25 "points or I could go 4.625 with 2.875 points. This would result in an additional cost in excess of $5,000.00. I told her that the higher rate was unacceptable to be and asked her what my options were. She said either accept the higher rate on cancel the loan application altogether.
I believe the increase in the interest rate of 4.375 (fixed) is unfair. The delay in processing this loan is the fault of the Lender. I made several attempts to speed up the process. I provided all documentation the loan officer asked for on the first day. I sent faxes in a timely manner, provided documentation when asked, and made numerous phone calls and visits to the branch.
I and my wife's credit is excellent (both high 700 score) When the 60-day lock expired I was told it was from no fault of my own. The Lender extended the lock but did not specify for how long. I did not receive any written confirmation nor did sign any extension form. Nonetheless the extension past 60 days was granted. I assumed this extension was to continue until the loan was fully funded. I believe this to be so because why would the loan agent make an appointment for me to sign escrow documents after the closing date. Even the new good faith estimate I signed on Oct. 20 states the original rate.
I have even received a Quitclaim Deed dated Oct. 17 from the Riverside County Clerk. It is only my opinion but it seems to me that this loan process was delayed almost purposely to increase the rate. I have been given no reasonable explanation as to why it was delayed. I've called the 1-800 customer service and they just hang up when I ask to talk to someone higher than a branc manager. This Company is a joke.
Michael
Riverside, California
U.S.A.
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