There seems to be a new approach to doing home loan refinances these days.
Charge the client the cost of the appraisal without any sort of pre-qualification or pre-loan processing check, wait 5 weeks while the paperwork sits at the underwriters and then reject the loan without valid cause, thus causing us, the unsuspecting homeowner who simply wants to refinance, to be out the $400 cost of appraisal.
While it may not be possible to recover this money, our experience should (hopefully) serve as an object lesson for anyone who wants to do business with Equitable Home Mortgage.
Their reasoning in the end for rejecting the loan was that our Debt to Income ratio exceeded 45% – and that’s a perfectly valid reason for rejecting a loan refinance, but a competent “Senior” loan agent should be able to tell you that up front and not waste a client’s time and money.
We waited 6 weeks to find out our loan application was denied.
We have excellent credit scores – 750+, 6 figure income, approximately $550,000 in existing home equity, never a late payment on anything!
Poor communication. Towards the end (right before we found out we were denied), all communication from this brokerage firm stopped. Emails simply went unanswered.
Didn’t even the common courtesy to tell us we were rejected (or the reason why).
We instead received a form rejection letter from some 3rd party vendor.
Didn’t follow up with our 2nd Mortgage Lender (HELOC) to obtain a Subordination Agreement, bringing into question how serious/committed they were to ever even process this loan.
Were biased against (didn’t include in our total income) against any sort of external income (i.e. 1099/unemployment/rental)
At no point stated there was any problem with the loan or that we wouldn’t qualify
Was slow to respond (or didn’t respond at all) to inquiries regarding our loan or the process of the loan
“Senior” Loan Agent Bob Drenk was unaware of Credit Locking and Unlocking. We unlocked our credit report for them to obtain a credit report.
Misquoted the cost of the appraisal. The appraiser seemed a little off as well, not even being to provide a business card when asked.
Why it doesn’t quite feel like a loan scam, it sure tastes like something is rotten.
How could they not know that our debt to income ratio doesn’t qualify when we fill out the loan application, provide our last 2 years tax returns and current paystubs? The whole situation reeks of total incompetence on their part!