Renamed: The Lenders From Hell Thread

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Submitted by flu on January 28, 2013 - 8:43pm

oh boy... this is a new one...

Payment choices
1. Snail mail....

2. Automatic debit...

3. Via web on demand... There is a $7.50 service charge per payment.... Wow that sucks...

4. Via phone via western union. There is a $7.50 service charge per payment, on top of western union charges...

Wow....

Submitted by flu on January 28, 2013 - 8:50pm.

More fees!

Amortization Schedule 10.00 (free on website)
Payment History 10.00 (free on website)
Copy of 1098 10.00 (free on website)
Copy of Note 20.00
Copy of Mortgage/Deed of Trust 20.00
Copy of HUD-1/Settlement Statement 20.00
Copy of Appraisal 20.00 (if 90 days or more after closing)
Copy of other/Misc loan documents 10.00
Faxing Document (Payoff, VOM etc) 10.00
PROCESSING FEES:
Returned Payment 25.00 (NSF, Closed Account, Invalid Account, etc)
Online Payment (one-time) 7.50 (one time draft through the automated system)
Phone Pay Fee 7.50 (one time draft through a representative)
Late Charge* 126.69 5.00% of PI payment

Submitted by carlsbadworker on January 28, 2013 - 9:07pm.

I thought Provident Funding was bad too originally. But all you need is automatic debit...so it is not that bad.

My new lender (Interbank Loan) is utterly horrible. First of all, there is no website at all. Forget about on demand payment or automatic debit. The only option is snail mail. And I read online that it is slow to accept snail mail and would charge you $10 for pay via phone. So I sent my payment as soon as I got my deposit slip and 2 weeks later, it has not debited the check. I guess I can not avoid that $10 fee otherwise I will have a late payment.

Luckily, they just sold my loan to another servicer. Otherwise, I will be forced to refi as soon as possible not for the rate but to stay away from that lender.

Submitted by flu on January 28, 2013 - 9:21pm.

Ok. I decided to rename this thread and call it "Lenders from Hell"...

That way we can share our collective experiences from different lenders....

I guess from what you posted, I'll get use to it and it could be worse....

Submitted by flu on January 28, 2013 - 9:23pm.

Well the thing that irks me is these nickel and dime fees. You know you think that the lender would be obligated to disclose of all these nickel and dime fees before escrow.. But maybe I missed it, I don't recall there being a disclosure of these fees (just how much your payments will be)....

Also, not that I'm planning to but the way provident is set up, they really discourage you to make irregular extra principal payments. I don't think you can do it...

Submitted by jpinpb on January 28, 2013 - 9:25pm.

Just wanted to say that I mentioned Provident in the Some areas have less than a month inventory thread.

Specifically:

"This was after we had gone through one of his other lenders that guaranteed no cost IF we had 20% equity. Needless to say, that appraiser came in lower of the 80% LTV.

This isn't my first rodeo. I have checked the comps in my area and coming in at 80% LTV was easy, considering view and improvements compared to other properties that sold in the area.

After wasting so much, time, effort and energy, maybe they thought we'd pay to do the loan, regardless of the appraisal amount. However, for us, it mattered to get rid of PMI. We didn't do the loan w/that lender."

"I'll also add, Mr. jpinpb just found a website where people were posting about complaints of this lender, and I'll just go ahead and name names. Provident Lending. Some of the complaints were pretty much exactly as ours. Too bad we didn't stumble upon the website months ago. Would have saved us a lot of anguish."

This is the website that Mr. jpinpb came upon recently:

Provident Funding Complaints

This particular comment pertains to appraisals:

Provident Funding - Don't DO IT

Submitted by flu on January 28, 2013 - 9:26pm.

Also, not that I'm planning to but the way provident is set up, they really discourage you to make irregular extra principal payments. I don't think you can do it via automatic ACH... So you either pay the 7.50 or do the snail mail.

I guess I can't complain, because my broker was just awesome and he got me a 2.5% no cost rate and rates did go up now to 2.625% i think.

jpinpb, I didn't have problems with the appraisal as you did. My appraisal actually came in higher than I expected and much higher than the previous refi. Also, the paperwork for me wasn't bad (it was bad from my old lender)....

Oh well, I guess for cutthroat rate, I gotta put up with the slight inconveniences now.

Submitted by jpinpb on January 28, 2013 - 9:26pm.

We ended up going with Loan Depot and closed at 30 yr fixed @ 3.25% and got rid of our PMI. LD was great.

Submitted by jpinpb on January 28, 2013 - 9:29pm.

flu - I guess in your case there is no way your appraisal was not going to come in b/c you have enough equity. But I suspect any people that are hovering that 20% figure that will decide whether the loan will cost them or not, apparently it will come in just shy.

Submitted by carlsbadworker on January 28, 2013 - 9:43pm.

flu, actually you can make irregular extra payments with provident. It is just not straightforward. It has automatic debit, and you can change the automatic debit amount any time you want. Anyway, you can figure it out once you play with the website long enough.

Submitted by flu on January 28, 2013 - 9:55pm.

carlsbadworker wrote:
flu, actually you can make irregular extra payments with provident. It is just not straightforward. It has automatic debit, and you can change the automatic debit amount any time you want. Anyway, you can figure it out once you play with the website long enough.

ah, I see. Got to make a change before the 14th of the prior month...Yeah, what a pita....

Submitted by CA renter on January 29, 2013 - 12:53am.

carlsbadworker wrote:
flu, actually you can make irregular extra payments with provident. It is just not straightforward. It has automatic debit, and you can change the automatic debit amount any time you want. Anyway, you can figure it out once you play with the website long enough.

What about if you use snail mail? Shouldn't there be an option to make additional principal payments on the payment slip?

I know USPS is not necessarily ideal, but maybe it would be simpler WRT the extra payments.

Submitted by livinincali on January 29, 2013 - 7:56am.

flu wrote:
Well the thing that irks me is these nickel and dime fees. You know you think that the lender would be obligated to disclose of all these nickel and dime fees before escrow.. But maybe I missed it, I don't recall there being a disclosure of these fees (just how much your payments will be)....

Also, not that I'm planning to but the way provident is set up, they really discourage you to make irregular extra principal payments. I don't think you can do it...

It's hard to make money when you loan margin is like 2%. Nobody works for free, so if you get an ultra low rate expect to pay for it in hidden fees. In a typical California house the lower rate make up for the fees but on some houses in the country below $150K-$200K the fees might be more than the rate savings.

Submitted by all on January 29, 2013 - 9:43am.

carlsbadworker wrote:
I thought Provident Funding was bad too originally. But all you need is automatic debit...so it is not that bad.

My new lender (Interbank Loan) is utterly horrible. First of all, there is no website at all. Forget about on demand payment or automatic debit. The only option is snail mail. And I read online that it is slow to accept snail mail and would charge you $10 for pay via phone. So I sent my payment as soon as I got my deposit slip and 2 weeks later, it has not debited the check. I guess I can not avoid that $10 fee otherwise I will have a late payment.

Luckily, they just sold my loan to another servicer. Otherwise, I will be forced to refi as soon as possible not for the rate but to stay away from that lender.

Interbank generally does not keep or service mortgages. There are few threads online where people recommend waiting a couple of weeks before making a payment if you refinanced with them.

Submitted by sdduuuude on January 29, 2013 - 10:23am.

The thing about Provident is - they have very low rates and only deal with the most prime borrowers. They expect to get top dollar for their loans when selling them and as such work their customers to death getting details in order. When we signed our Provident docs, the public notary was incredibly detailed. Told us that he goes overboard on Provident signings because they often send him back to have documents resigned if the signatures aren't identical, or if one person dates one document 1/1/2013 and another one 1-1-13, etc.

You can't have it both ways - a great rate and an uncaring, non-particular lender who will loan to just anyone.

They are exactly the opposite of the lenders everyone complained about in 2006.

Submitted by flu on January 29, 2013 - 10:29am.

sdduuuude wrote:
The thing about Provident is - they have very low rates and only deal with the most prime borrowers. They expect to get top dollar for their loans when selling them and as such work their customers to death getting details in order. When we signed our Provident docs, the public notary was incredibly detailed. Told us that he goes overboard on Provident signings because they often send him back to have documents resigned if the signatures aren't identical, or if one person dates one document 1/1/2013 and another one 1-1-13, etc.

You can't have it both ways - a great rate and an uncaring, non-particular lender who will loan to just anyone.

They are exactly the opposite of the lenders everyone complained about in 2006.

This happened to me...

When I was signing my docs, there was one document that I wigged out and had a slightly different signature. And there was another document in which my date almost looked like it was 1/13/2013 instead of 1/18/2013. They had to dispatch a courier to have me resign the both pages. It would have been entertaining if it wasn't the day before close of escrow.

Hopefully, they sell the loan to wells fargo. Then I can reopen an PMA account.

Submitted by flu on January 29, 2013 - 10:31am.

One other thing. I noticed that my credit score took a slight hit by all the recent refinances. I was hovering around 820 last year on average. Now I'm around 780ish.... The common complaint was "too much credit inquiry" lol...

Submitted by AN on January 29, 2013 - 12:32pm.

I have loan with both Provident, Interbank, and Caliber funding. They all are still stuck in 2000 in term of technology, but it's not too bad. I just have my Chase account send them a check every month on the same day, so, I don't have to do anything manual. Someone said Interbank doesn't have a website... here it is: https://carenet.fnfismd.com//loanadmin/d...

Submitted by spdrun on January 29, 2013 - 4:50pm.

Jeez, what's the big deal about snail mail? Even if you don't live a block from a post office as I do, you can always drop the thing in the outgoing pile at the office. Cost of a stamp is chump change w.r.t. the cost of a mortgage.

Submitted by AN on January 29, 2013 - 4:57pm.

spdrun wrote:
Jeez, what's the big deal about snail mail? Even if you don't live a block from a post office as I do, you can always drop the thing in the outgoing pile at the office. Cost of a stamp is chump change w.r.t. the cost of a mortgage.

uh, because its 2013 and not 1993.

Submitted by spdrun on January 29, 2013 - 5:01pm.

Jeez, if it works and the lender is decent in other respects, just roll with it. Tech for the sake of looking like you're in 2013 is just showmanship, and I'd rather deal with an old-school entity that provides decent service in other respects.

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