• Report: #233674

Complaint Review: First Magnus

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  • Submitted: Tue, January 30, 2007
  • Updated: Sat, April 09, 2011

  • Reported By:Media Pennsylvania
First Magnus
603 North Wilmot Tucson, Arizona U.S.A.

First Magnus, 1st Pyramid Financial mortgage settlement delays unprofessional ripoff Tucson Arizona

*Author of original report: Just a follow up.

*REBUTTAL Owner of company: The Mortgage Company was not at fault

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We sold our home to a family that used First Magnus as their mortgage funder and 1st Pyramid Financial as their broker. We were making settlement on our old home and new home on the same day.

On the day of settlement the buyer's broker from 1st Pyramid Financial said that after all the settlement documents were signed, they had to be faxed to an underwriter at First Magnus for approval. My knowledge in these matters is limited, but from what I understand this is an uncommon practice. After a few hours of waiting, the broker said the loan was approved and the loan would be funded. This is also another uncommon practice. The Title Company said that most loans are funded just prior to the settlement.

This is where the real trouble began, and the people buying our house were forced to jump through hoops. The scenario below played out an unreasonable number of times for the next 2 days.
1) Wait for the loan to be funded by First Magnus.
2) Title company calls First Magnus asking where funds are.
3) First Magnus requests additional information from borrower.
4) Borrower supplies additional information.
5) Go to step 1 and repeat over and over for next 2 days.

After 2 days of having the borrower jump through hoops (sending on-line bank statement, send copy of monthly bank statement, send copy of bank statement directly from bank, etc.) we were in danger of losing OUR new house that we were supposed to make settlement on. The Title Company was going to send all contracts back to all parties. What turned things around was when I notified the Pennsylvania Banking Commision. Once First Magnus found out that the Banking Commission was requesting that the Title Company fax all documents to them, the funds were sent within an hour.

As I stated, I'm not an expert in this area, but..
1) Aren't loans supposed to be approved prior to settlement?
2) Aren't loans suppposed to be funded at settlement?
3) Aren't brokers supposed to be licensed in the state their operating in? The 1st Pyramid Financial Broker wasn't licensed in Pennyslvania.

Although we weren't the borrower from First Magnus, we sustained additional costs due to the manner they conducted themselves in this transaction. We incurred additional moving costs due to failed delivery attempts and over night storage charges. I rented a small UHaul for some of our items, and had to rent this for additional days. We wasted vacation days while the loan was in pending mode.

The Pennsylvania Banking Commission took up our cause, but the lender denied paying our additional expenses.

I understand that businesses sometimes makes mistakes. I have a high regard for businesses that quickly identify a problem and remedy it. This wasn't the case in this situation.

By the way, did I mention that my wife was 8-1/2 months pregnant at the time of settlement? Luckily the family is fine and in our new house. My advice to anyone buying or selling a home where First Magnus or 1st Pyramid Financial is involved, run to a more professional lender and broker.

William
Media, Pennsylvania
U.S.A.

This report was posted on Ripoff Report on 01/30/2007 11:07 PM and is a permanent record located here: http://www.ripoffreport.com/r/First-Magnus/Tucson-Arizona-85711/First-Magnus-1st-Pyramid-Financial-mortgage-settlement-delays-unprofessional-ripoff-Tucso-233674. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
1Author 0Consumer 1Employee/Owner
Updates & Rebuttals

#1 Author of original report

Just a follow up.

AUTHOR: William - (USA)

I posted my report a while ago, and just happened to notice there was a response from the owner of one of the parties.  I appreciate the time that was taken to respond to my report.One thing not addressed was that the 1st Pyramid Financial broker from NJ was not licensed in Pennsylvania.  I was told this afterwards by the realators and people at the title company.  When the broker was with his client at the title company on the day of settlement, he spent most of his time on the cell phone checking on the status of the loan approval.  He kept re-assuring us that the loan was approved and was going to go through.  I was told afterwards that when he would go in the other room he was pestering the title company for his check.  Once he got his check he left.I know this might not be representative of 1st Pyramid Financial as a whole, but it gives an idea as to what we experienced at the time.

I did do some further checking...You can search for 1st Pyramid Fianancial by going to the Better Business Bureau.  See link at bottom.  It loooks like they're realted to a bunch of other companies or keep changing their names to one of the below.  As always... do your research and make your own informed decisions!

Expert Settlement Professionals
FBL & Associates
P & E Solutions, Inc.
Lifeguard Financial
ESP
Safetrust Financial
1st Pyramid Financial, Inc.
Safe Trust Financial, Inc.
BLUE CHIP BANKRUPTCY


http://www.bbb.org/south-east-florida/business-reviews/debt-consolidation-services/fbl-associates-in-fort-lauderdale-fl-16000703
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#2 REBUTTAL Owner of company

The Mortgage Company was not at fault

AUTHOR: Rafael - (U.S.A.)

As owner of 1st Pyramid Financial I must state that my company did everything within its power to get the deal done. It is not our fault if the lender First Magnus did not fund or delayed the funding of the deal. If the title company was fighting for the client then its obvious that it was out of the mortgage companies hand. Once A mortgage deal goes to closing it between the title company and lender. Once a bank gives a clear to close and schedules a closing date and a title company receives a package WE the Mortgage company did our job.

At the time of closing was when the Mortgage Industry was going thru all the changes that we see now as far as subprime and Alt A lending is concerned. First Magnus was having financial problems and was taking longer then expected to fund loans and as we all know today they went out of Business. Therefore 1st Pyramid Financial should not be looked at as a ripoff company as the client eventually closed on their property. We have an A rating with the BBB and we are extremely proud of the way we conduct bussiness. Again in this case the Mortgage company should not be mentioned as the Bad Guy.
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