"Chase" Refinance Scam

User Forum Topic
Submitted by kcal09 on April 21, 2010 - 7:42pm

We received a flier by Chase to refinance our home in September 09 with attractive rates and contacted the office. Currently our loan is at 6.375%, a loan we had since June 2008 we contacted the office and locked in a 5.125% for 90 days. We paid a fee of $750. Our house was appraised one week later. As we have our current mortgage at Chase as well there is with the higher house value even less risk than last year. We submitted income and savings information, got from Chase a message that our credit rating was excellent and that the contract is in the underwriting department. We were told that closing should occur at the end of December 09. However, nothing happened at the end of December. In fact, they requested additional documents in February.Since then we have been waiting for a closing date, but haven't gotten any progress. Numerous phone calls were not answered. Finally at the end of March I received an e-mail stating that 2 more documents are needed due the next day or my file would be closed.We immediately faxed those documents and nothing happened again for 3 weeks. Yesterday we got an e-mail that underwriting is reviewing the application again.We are wondering if Chase is stalling customers, as the mortgage rates have been going up steadily since we agreed on the locked in rate.We have done research online and found that Chase has done this to many other customers.
I would like to know what we can do as this appears to be a fraud.

Submitted by HLS on April 22, 2010 - 12:20am.

KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not "been going up steadily".
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don't tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn't mean that they own it and you aren't going to get any special service or favors just because you currently make your payments to them.
It doesn't matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn't qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren't making an adjustment to an old loan. FNMA doesn't care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn't mention your type of loan, loan amount, credit score or property value. Perhaps you don't qualify for a refi today.
If you don't qualify, it's not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn't care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn't as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don't qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately... HLS

Submitted by UCGal on April 22, 2010 - 9:15am.

I have been disgusted with Chase, overall, since they took over WaMu. We're in the process of moving our accounts - since Chase seems so "fee happy" compared to Wamu. They're giving us grief on some of my husband's IRAs...

We'll keep one account there - it's the closest bank to our house - so it's nice to have something walking distance... but Chase is doing a good job of alienating long term former WaMu customers.

Submitted by kcal09 on April 22, 2010 - 9:48am.

HLS wrote:
KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not "been going up steadily".
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don't tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn't mean that they own it and you aren't going to get any special service or favors just because you currently make your payments to them.
It doesn't matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn't qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren't making an adjustment to an old loan. FNMA doesn't care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn't mention your type of loan, loan amount, credit score or property value. Perhaps you don't qualify for a refi today.
If you don't qualify, it's not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn't care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn't as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don't qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately... HLS

Thank you, are you a mortgage broker?

Submitted by kcal09 on April 22, 2010 - 9:50am.

UCGal wrote:
I have been disgusted with Chase, overall, since they took over WaMu. We're in the process of moving our accounts - since Chase seems so "fee happy" compared to Wamu. They're giving us grief on some of my husband's IRAs...

We'll keep one account there - it's the closest bank to our house - so it's nice to have something walking distance... but Chase is doing a good job of alienating long term former WaMu customers.

I share your disgust. We had problems with our credit cards where they charged us fees which were not justified. After complaining they still refused to reverse the fees. I have heard from many other people that Chase has been very unethical.

Submitted by sdrealtor on April 22, 2010 - 9:56am.

From my dealings with them on SHort Sales they are one of the worst and the worst among the big banks.

Submitted by kcal09 on April 22, 2010 - 10:54am.

sdrealtor wrote:
From my dealings with them on SHort Sales they are one of the worst and the worst among the big banks.

Which one is the best in your opinion?

Submitted by sdrealtor on April 22, 2010 - 10:56am.

There are a few but if I told you, I'd have to kill you. If you have a question about what its like to deal with a specific lender, send me a PM and I'd be happy to tell you what I know.

Submitted by edna_mode on April 22, 2010 - 1:24pm.

I had to report Chase to their national regulator due to the runaround they gave me to close a dormant account. I finally wrote to Jamie Dimon (CEO) directly to put a stop to it.

In a separate issue, they managed to drop a digit off my mailing address and NOT INFORM me that there was a balance outstanding for a few months (despite having email and phone for me which were correct). The rep even mentioned that the letters had bounced to them to that nonexistent address. I had to go to the executive office to waive all the fees.

Finally, have you seen their horrible website? I changed cc numbers over time (moved from airline to cash rewards; they sometimes send out a new #), and they NEVER DELETE the old cc#s. So it looks like you have 8 accounts when you might have 3 cards. You can only get 90 days of historical transactions.

While the individual people seem to be trying their best, the institutional dysfunction overwhelms their efforts.

Submitted by sobmaz on April 22, 2010 - 4:03pm.

Screw Chase!

You can beat that rate right now, today. Go to a mortgage broker and get it going and be done with it in 30 days or less!

An independent mortgage broker gives you someone who is much more responsive and nimble and hungry to make the transaction work.

Good luck

Submitted by EconProf on April 22, 2010 - 8:00pm.

There may be no more incompetent and dishonest bank than Chase.
My relative has been trying to get them to live up to their promises and assurances since last August. She has spend countless hours on the phone with their loan servicing department since they took over WaMu. They continually screw up in mailing things they promised, they bounce your calls to different departments, they can't reveal certain things to their own customers, they give different advice depending on who you talk to, they take forever to answer their phones, etc, etc.
Short this stock!

Submitted by Aecetia on April 22, 2010 - 8:17pm.

There are many complaints on Chase, just google complaints about Chase, either credit card or mortgage. Then you can join the gang. We also had some issues with them and ended up refinancing with another bank and it worked out well, better service, better rate.

The spam filter did not want me to put the link on this reply for some reason. Maybe I am over my limit...

Submitted by FormerSanDiegan on April 23, 2010 - 9:32am.

kcal09 -

Google "Home Loan Sheldon"
Go to his web site and give him a call.

kcal09 wrote:
HLS wrote:
KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not "been going up steadily".
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don't tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn't mean that they own it and you aren't going to get any special service or favors just because you currently make your payments to them.
It doesn't matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn't qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren't making an adjustment to an old loan. FNMA doesn't care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn't mention your type of loan, loan amount, credit score or property value. Perhaps you don't qualify for a refi today.
If you don't qualify, it's not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn't care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn't as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don't qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately... HLS

Thank you, are you a mortgage broker?

Submitted by all on April 23, 2010 - 10:02am.

edna_mode wrote:
I had to report Chase to their national regulator due to the runaround they gave me to close a dormant account. I finally wrote to Jamie Dimon (CEO) directly to put a stop to it.

In a separate issue, they managed to drop a digit off my mailing address and NOT INFORM me that there was a balance outstanding for a few months (despite having email and phone for me which were correct). The rep even mentioned that the letters had bounced to them to that nonexistent address. I had to go to the executive office to waive all the fees.

Finally, have you seen their horrible website? I changed cc numbers over time (moved from airline to cash rewards; they sometimes send out a new #), and they NEVER DELETE the old cc#s. So it looks like you have 8 accounts when you might have 3 cards. You can only get 90 days of historical transactions.

While the individual people seem to be trying their best, the institutional dysfunction overwhelms their efforts.

This comes close to what I experienced with Chase.
I canceled my CC with them (or I thought I did) in late 2007. In March 2009 they charged me an annual 'dormant account' fee, followed by May and June late fees. I received no letter or email - they changed my preference to paperless bill and SpamAssassin blocked the emails, presumably.

They reported me to credit agencies and reduced my rating by ~60 points. I learned about the whole thing when I applied for a loan and saw my credit score down to ~740 from >800.
Then Citi canceled my wife's 5% cash-back Shell card due to delinquency on a linked (Chase) account, since she had me added to her account.

The rating agencies were quick to react when I complained. I was pleasantly surprised by that.

The whole thing reinforced my opinion of technology-enhanced business process - if you are covered by the basic use case you solve your do your thing with few clicks (get money from ATM, transfer money between banks and accounts, register your vehicle, change address...) and your life is much easier.
But if you are on one of the alternative paths you are SOL.

Submitted by HLS on April 23, 2010 - 7:16pm.

The OP contacted me and is expecting to sign Chase docs soon, 7+ months since they applied.

In addition to the aggravation, they have overpaid $3000+ in interest at their higher rate over the past 6 months.
No loan is done until it is funded. I hope that they post an update....HLS

Submitted by kcal09 on April 25, 2010 - 5:32pm.

Yes, we are scheduled to sign the loan docs tomorrow. Still, I'm very upset that it took so long as HLS pointed out. Stay away from Chase!!

Submitted by HLS on April 27, 2010 - 10:21pm.

KCAL,,
Did you sign your docs yet ??

Submitted by kcal09 on April 28, 2010 - 10:19am.

Yes, signed on Monday. Loan will be funded on 4/30. They even gave me a partial refund of my application fee for the delay and honored all previous conditions. They also used the first appraisal.

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