Wells Fargo – illegal practice or not?

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My husband and I decided to try to refinance our home … (We’re up 6% – but I wanted to take advantage of the provision of 4.3%). We were actually contacted by Wells Fargo (since we are in a different mortgage insurers). After the first meeting we were told our debt / asset / credit) was slightly higher than they wanted. We said we needed to refinance our first choice (orig. $ 25,000 to $ 15,000 cash). When we refinanced with Wells Fargo, the interest would be greater than what we had (10% with credit union-15% WF), but we were able to mortgage loans of 4.3% to qualifizieren . Vor sending documents to refinance the house, we kept asking if we needed our rate “lock”. We were told “no” even after we specifically asked about it. (Because the date and the current price, your good credit, we expitide your documents, no need to blah blah blah …). The contents of the first good faith, we reported was 6.3%. (We at 6%. Why should we go higher?) We refused. They assured us that their insurers were inexperienced and had just signed a contract with another company signed, we’ll try again. The second quote was in good faith for 10% off In the meantime, they said we qualified for a small line of credit in addition to refinancing …. We need $ 3,000 for repairs barn, we signed a lot of understanding, it was a separate loan. We then know that they refiance transferred to the clearance, so that the collection is worth $ 15,000, we need $ 18,000. No bank refinance because we are now down on her, we’ve completely watered, cheated, lied ….. several people said this is illegal … but how can you prove it, and tell you to report or questions?
It’s a bit complicated, so try to be patient with mir.Ich to buy a house. Upon receipt of a letter of pre-qualified by a bank, I applied for a mortgage. I was recently denied for the loan (low income), but was told my loan officer at the bank I received another loan werden.Ich FHA approved a call from her today that I thought I further said I was approved for the loan. She mentioned the word “enterprise” and said that I would have to sign the paperwork because it was an FHA loan. She said, congratulations, I said, relieved, I war.Aber few hours later, my credit went to the bank processor me a message that the change of auditor on certain documents, because it requires a loan FHA, then it will again be sent to the subscription for the examination. “Am I ready or not? After receiving this news, I immediately thought that maybe I just misunderstood my loan lady, and she was really telling me that I look back on the FHA loan wurde.Ich is not passed before I had pre-approved again, I was already in the first place! Now I’m really confused and have no idea what to think. It is Memorial Day weekend, two of them are already verlassen.Was Tuesday, you think? Thank you, thank you for great information so far. I am aware that my “pre-qualified” letter I received in March, when I go this process is not a loan commitment begann.Auch the bank already had all my information (I am a conventional mortgage only a week ago, played with them). Thank you yet.

  1. Reply
    February 20, 2011 at 4:29 am

    Talk to a lawyer. Chances are, he can get a settlement without even going to court. Banks don’t like bad publicity.

  2. Reply
    February 20, 2011 at 4:51 am

    Look at your paperwork. If it states it its your own fault for not paying attention. HOWEVER if it dose not say it get a lawyer.

  3. Reply
    February 20, 2011 at 4:58 am

    I’m pretty sure they did some unethical if not outright illegal things there. I’m pretty sure they can’t force you to move another loan to their bank (the truck) as a condition for the house loan.

    At any rate, the banks are all screwed up now. I tried re-fi’ing only to be told it would take 3 months to process my application. 5 months later (after 2 months of constant calling) I finally got a form letter dated from 4 months ago saying my application had been declined. No reason was stated. So basically the bank sat on this letter for 4 months, and didn’t tell me. When I called back, I was told I was lucky – most applicants never even get the form letter.

    Oh, and if I wanted to try applying again, I’d have to start all over, from scratch. Seems the bank closed that program, fired everyone who was working on it, and destroyed all the paperwork. This also meant they couldn’t tell me why I hadn’t qualified for the program in the first place.

  4. Reply
    February 20, 2011 at 5:46 am

    Wells Fargo today is crap I took out a business line of credit within 6 months they cut it half O K I asked why? They did not know and told me to write a letter with a copy of my credit report I did twice My credit is great never received an answer after 20 years and I pay of the small loan next month I’m out of there

  5. Reply
    February 20, 2011 at 6:40 am

    the bottom line will be what the loan contract says in writing not what was or was not said in person or over the phone.

  6. Reply
    Discipulo legis, quis cogitat?
    February 20, 2011 at 7:30 am

    The less expensive route is to contact the state attorney general’s office. Each state attorney general’s office has a consumer protection unit. The idea is that the average citizen is at a disadvantage when negotiating contracts that are filled with small print. They also conduct white collar criminal investigations.

    Most AG offices have online forms to get you started. Some states permit double or triple damages.

  7. Reply
    February 20, 2011 at 7:55 am

    Willow you have the loan, but FHA has standards for the house. They are verifying that the house itself passes FHA guidelines.

    In a very short version of the standards: If you can’t just move right on in the house will not pass.

  8. Reply
    Gemini man
    February 20, 2011 at 8:19 am

    Based on your discussion of events, understand that pre-approved only qualifies you for a loan amount, no different than buying a car instead of a house. The FHA loan is a special program from the government therefore additional paperwork was necessary. The appraiser is the person that qualifies the value of the home itself. If the appraised meets the loan, then you go to the next step. The “underwriter” is generally the final person that approves everything to show that it is all in order. If he/she approves, then you are home free. Overall, you are likely approved. Good luck.

  9. Reply
    Fort Sill Army Wife
    February 20, 2011 at 9:17 am

    First pre qualifying and pre approved are not the same… pre qualifying isn’t worth the paper its wrote on. You can NOT be approved for a loan until it comes back from the underwriter, the underwriter has the final say in whether or not you are approved…plain and simple. But I wouldn’t worry too much about it.

  10. Reply
    February 20, 2011 at 9:40 am

    You probably have conditional approval, meaning that if all the information they have about your employment, income, etc is verifiable, you’re approved.

    Underwriting guidelines for conventional loans are different than for FHA or VA or reverse mortgages…so the underwriter has to see it again, but if all the conditions are met, you’ll be approved.

    In the past, loan decisions were made by a committee. Lenders would have loan committee meetins once a week or at some other interval, and review all the applications that were taken since the last meeting. They discussed the various characteristics of each application and made a group decision. It frequently took a few weeks for this to happen. They didn’t make the decisions until the employment, income and assets were already verified.

    Today, most loans are decisioned by desktop underwriting. A program reviews the data entered, and makes a decision based on the guidelines it’s been given. Usually someone other than an underwriter reviews this decision, makes sure there’s nothing unaccounted for by the desktop underwriting, and writes out the conditions. Frequently something is found that wasn’t addressed by desktop. One thing that comes to mind is desktop can’t tell if you have owned rental property long enough to qualify for that income to be considered. Your rental property might not have a mortgage on it, so there’s not enough data. There are other things too, but I just can’t think of any right now. Anyway, if it’s conditionally approved, the not-underwriter-reviewer will generate a conditional approval notice, telling you what you have to provide (pay stubs, bank statements, etc) to make it an actual approval.

    Does that help at all, or is it just too many words?

  11. Reply
    February 20, 2011 at 10:14 am

    You don’t have it done, but I would say 95% of loans go through when you get the commitment letter.

  12. Reply
    Lisa L
    February 20, 2011 at 10:44 am

    I have switched many clients from Conventional to FHA. There are additional forms with an FHA loan so I think that is what your LO is talking about. Also, an FHA appraisal is a little bit different from a Conventional one. An FHA case number was ordered, & the appraisal was re-done on a different form. Sounds like the appraiser is FHA approved so you are in luck. And yes, it would have to go back to an UW to be underwritten again because the program has been changed. It could be your LO ran it through DU as an FHA loan & got an Approve/Eligible so that is what she was telling you. It sounds like you are good to go.

    An LO you can’t talk to over the weekend? That doesn’t apply to me. I am available for my clients. If I am out of town someone covers for me. I would never let my clients hang like you are.

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