SUBMITTED: Wednesday, January 29, 2003
POSTED: Wednesday, January 29, 2003
This is an update to my original post. Yesterday in the mail I received a packet of information from World Savings headquarters in Oakland, CA. regarding my complaint with the Office of Thrift Supervision.
Part of the issue was the appraisal for the house I was purchasing. The loan officer told me that the appraisal came in under the selling price. He did not provide me a copy of the appraisal, nor the comps, nor did he return my realtor's call for the comp information.
Come to find out that the appraisal came in OVER the selling price. The loan officer outright lied to me on the phone about the appraisal. The appraisal was used as an excuse to go from a 10% down fixed rate loan to a 20% down adjustable rate loan, plus the difference between the selling price and what the loan officer said was the appraised value of the house.
Also, I applied for a 6% fixed rate loan, but received a denial letter (sent to an obsolete address in another state) for a 5.95% loan. I never applied for a 5.95% loan. No Good Faith estimate was ever provided, no Truth in Lending documents, and now the appraisal comes back a different amount also.
When I requested the appraisal, I was told it wasn't available for me. The appraisal was apparently performed by an inside appraiser who is employed by the bank.
The matter is still under investigation by the Florida Commission on Human Relations, which received the case as a referral from HUD.
This bank committed outright fraud in the processing of my mortgage application.
I did get a fixed rate loan through another lender, and I did get my house. If I had proceeded with the World Savings products, there is no doubt in my mind I would have paid thousands of dollars more in closing costs, and been stuck with a negative amoritization loan.
I did not apply for an adjustable rate loan, but was told that that was all that was available for me, with 20% down and the difference in appraisal value/selling price. Since I qualified for a fixed rate loan with another lender and ended up putting up less than 10% down, this statement by World Savings is way off base. My credit is excellent, I was eligible for their fixed rate loan and qualified for a loan at another institution.
This bank plays fast and loose with the facts and with borrowers.
Is it bank policy or just one really rotten loan officer? I'll let HUD and the Office of Thrift Supervision and the Florida Commission on Human Relations decide.
There are many laws protecting consumers in the mortgage process. My advice to borrowers is to do a lot of research before applying for mortgages. Know your rights, ask for documentation and trust your gut if it feels like you are getting the run around.