Posted on: 12th Nov, 2010 11:39 pm
i applied for a loan from one of the larger mortgage brokers on september 1, 2010. they requested numerous docs and i provided them all within 24 hours. then they said i needed an appraisal and i agreed and i paid for the appraisal. my credit is great (over 800) and i have all the docs they asked for with no surprises or bad things that could threaten the loan. the appraisal came out perfect for a 75% loan to value. then out of the blue they rejected my application and told me that i didn't qualify due to my having too low an income to debt ratio.
two things bother me about this. first, they had all of the documentation before ordering the appraisal so they knew what my income to debt ratio was before ordering the appraisal. can i sue for reimbursement of my appraisal fee based on this? i have e-mails to back this up.
second, i applied to another mortgage broker and explained to them what the previous mortgage broker told me and not only did they state that my income to debt ratio was good, but i didn't need my wife's income on the loan application and that my income alone was good enough for the same exact loan. i had applied originally with both our incomes. this sort of backs up the fact that i believe the first mortgage broker lied to me.
considering i have no debt other than the few mortgages on investment properties i questioned their reasoning. also, when you consider i have more investment properties than i have mortgages and i have positive income on all my properties i questioned their reasoning. then i questioned them again because i have enough cash to pay off two thirds of my mortgages which would put me in a much better income to debt ratio. plus i have a 40 hour a week job. all they would say is my income to debt ratio was too low even with my wife's income being considered.
after questioning their reason on the phone the broker let it slip that the underwriter saw something on my tax return that "spooked him". which is not the same as having a low income to debt ratio. i feel this is strange as there is nothing weird or strange on my tax returns. they are straight forward and truthful.
another issue that i believe is strange about this is that the mortgage broker said something about sending me a letter stating the reason for the rejection within 30 days. i have yet to receive a letter from them.
considering i am signing the loan docs next week from the second mortgage broker i feel i have recourse to recover my appraisal fee from the first broker. what does everyone else think?
thanks!
dave
two things bother me about this. first, they had all of the documentation before ordering the appraisal so they knew what my income to debt ratio was before ordering the appraisal. can i sue for reimbursement of my appraisal fee based on this? i have e-mails to back this up.
second, i applied to another mortgage broker and explained to them what the previous mortgage broker told me and not only did they state that my income to debt ratio was good, but i didn't need my wife's income on the loan application and that my income alone was good enough for the same exact loan. i had applied originally with both our incomes. this sort of backs up the fact that i believe the first mortgage broker lied to me.
considering i have no debt other than the few mortgages on investment properties i questioned their reasoning. also, when you consider i have more investment properties than i have mortgages and i have positive income on all my properties i questioned their reasoning. then i questioned them again because i have enough cash to pay off two thirds of my mortgages which would put me in a much better income to debt ratio. plus i have a 40 hour a week job. all they would say is my income to debt ratio was too low even with my wife's income being considered.
after questioning their reason on the phone the broker let it slip that the underwriter saw something on my tax return that "spooked him". which is not the same as having a low income to debt ratio. i feel this is strange as there is nothing weird or strange on my tax returns. they are straight forward and truthful.
another issue that i believe is strange about this is that the mortgage broker said something about sending me a letter stating the reason for the rejection within 30 days. i have yet to receive a letter from them.
considering i am signing the loan docs next week from the second mortgage broker i feel i have recourse to recover my appraisal fee from the first broker. what does everyone else think?
thanks!
dave
Hi DaveB,
You can ask the lender to refund the appraisal fee that you've paid to them. You can even contact an attorney and take his help in dealing with the lender. He will be able to guide you in a better way in this regard.
Thanks
You can ask the lender to refund the appraisal fee that you've paid to them. You can even contact an attorney and take his help in dealing with the lender. He will be able to guide you in a better way in this regard.
Thanks
Usually it is standard for the lender to what to do an appraisal regardless of the outcome of the loan approval. It is hard for the underwriter to do their job without evaluation of the property. However, if there was income issues to begin with the mortgage broker may have not been aware of this at the time of the submission to the lender. Usually appraisal reports and title work is ordered right away because it takes time for everything else to fall into place. You can certainly try to get the money back from the broker but most likely they will say it is a cost of doing the approval process. You could write a letter to the state attorney general to argue your case.
ARE YOU KIDDING ME?
YOU PROBABLY TOLD THE BROKER YOU WOULD HAVE NO PROBLEM GETTING A LOAN, THINKING TO YOURSELF...HOW DARE ANYONE ASK YOU TO FILL OUT AN APPLICATION...AS IF YOU WERE STILL IN 2005 AND WE WERE ALL STILL IN LA LA LAND!
THEN YOU DRAGGED YOUR FEET GETTING THE BROKER THE REQUESTED DOCS THEY ASKED FOR 2 MONTHS AGO WHEN YOU CONTACTED THEY AND AFTER SPENDING WEEKS SHOPPING THE RATE ONLINE! (OR YOU CHASED AN ONLINE RATE THRU A ONLINE LENDER AND FOUND IT'S ALL BS!)
THEN CALLED THE BROKER WITH LESS THAN 30 DAYS TO CLOSE AND DEMANDED THEY MOVE QUICKLY!
THEY DID JUST THAT TO GET PAST THIS HVCC AND 4 BUSINESS DAY WAITING PERIOD CRAP IN EFFORT TO HELP YOU HERE IN 2010! THEY DID EVERYTHING THEY COULD TO EXPIDITE YOUR LOAN ONLY TO FIND OUT YOU WERE NOWHERE NEAR AS GOOD AS YOU SAID YOU WERE!
NOW YOU HAVE THE NERVE TO DEMONIZE THE BROKER OVER A BS $400.00 APPRAISAL FEE?
CLAWL BACK UNDER YOUR ROCK AND COME BACK OUT WHEN YOU REALIZE YOUR "CHANGE YOU CAN BELIEVE IN' HERO OBAMA HAS ELIMINATED YOUR CHANCES TO GET A LOAN!
YOU PROBABLY TOLD THE BROKER YOU WOULD HAVE NO PROBLEM GETTING A LOAN, THINKING TO YOURSELF...HOW DARE ANYONE ASK YOU TO FILL OUT AN APPLICATION...AS IF YOU WERE STILL IN 2005 AND WE WERE ALL STILL IN LA LA LAND!
THEN YOU DRAGGED YOUR FEET GETTING THE BROKER THE REQUESTED DOCS THEY ASKED FOR 2 MONTHS AGO WHEN YOU CONTACTED THEY AND AFTER SPENDING WEEKS SHOPPING THE RATE ONLINE! (OR YOU CHASED AN ONLINE RATE THRU A ONLINE LENDER AND FOUND IT'S ALL BS!)
THEN CALLED THE BROKER WITH LESS THAN 30 DAYS TO CLOSE AND DEMANDED THEY MOVE QUICKLY!
THEY DID JUST THAT TO GET PAST THIS HVCC AND 4 BUSINESS DAY WAITING PERIOD CRAP IN EFFORT TO HELP YOU HERE IN 2010! THEY DID EVERYTHING THEY COULD TO EXPIDITE YOUR LOAN ONLY TO FIND OUT YOU WERE NOWHERE NEAR AS GOOD AS YOU SAID YOU WERE!
NOW YOU HAVE THE NERVE TO DEMONIZE THE BROKER OVER A BS $400.00 APPRAISAL FEE?
CLAWL BACK UNDER YOUR ROCK AND COME BACK OUT WHEN YOU REALIZE YOUR "CHANGE YOU CAN BELIEVE IN' HERO OBAMA HAS ELIMINATED YOUR CHANCES TO GET A LOAN!
When I get a new client thats been working with another Lender, and they've already had the appraisal done - I use their existing appraisal. Did you get two appraisals?
Raymond,
That's a boild face lie and you know it! Don't try to make the buyer think you are the only lender/ broker in the country that is not suject to HVCC and AMCs!
That's a boild face lie and you know it! Don't try to make the buyer think you are the only lender/ broker in the country that is not suject to HVCC and AMCs!
I never lie. HVCC isn't around anymore, and has never been required for FHA-insured mortgages, only conforming mortgages, so HVCC isn't even applicable.
I am required to use an AMC for Reverse Mortgages, and reference "Mortgagee Letter 2009-29; Appraisal Portability" when I get a previous Appraisal transferred to me. Every Loan Officer should be familiar with that Mortgagee Letter.
I am required to use an AMC for Reverse Mortgages, and reference "Mortgagee Letter 2009-29; Appraisal Portability" when I get a previous Appraisal transferred to me. Every Loan Officer should be familiar with that Mortgagee Letter.
First I want to thank everyone (except Jersey Jim) for their answers. The new lender provided the paperwork that it takes to use the original appraisal. It was going to cost me an additional $100 and I would be at the mercy of the original lender as to how long it would take to get the paperwork executed. So I decided to go ahead and pay for the second appraisal. As it turned out I saved about $1000 in fees and a quarter percent with the new lender over the old one. Things have a way of working out I guess. Because of this I decided not to pursue a refund of the first appraisal.
Hey Jersey Jim, what is your problem? Is it normal for you to be a troll? You use CAPS and spew lies and just make yourself look like a jerk. Why you want to make yourself out to be nothing more than a jerk is beyond me.
Hey Jersey Jim, what is your problem? Is it normal for you to be a troll? You use CAPS and spew lies and just make yourself look like a jerk. Why you want to make yourself out to be nothing more than a jerk is beyond me.
Thanks for sharing your experience in the forums :-)