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Report: #370641

Complaint Review: Austin First Mortgage - Austin Texas

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  • Reported By: Austin Texas
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  • Austin First Mortgage 13284 Pond Springs Rd Suite 404 Austin, Texas U.S.A.

Austin First Mortgage Unreliable, unable to move loan forward, FOREIGN, english 2nd language, fraudulent Austin Texas

*REBUTTAL Owner of company: first response, I have not review this consumer's full file.

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I chose Austin First Mortgage (AFM) because they had the best rate and lowest closing costs. However, upon further review, this was not a good reason for choosing a mortgage broker. According to their website, they were also listed in the April 2008 of Texas Monthly as one of the 10 most reliable mortgage brokers in Texas. (This has got to be a HUGE ERROR!!)

I don't know where to start with this company. Don't deal with them because they offer a good rate. If you speak to them for more than 5 minutes you will find that the person you are talking to cannot speak or write in English at least in a way that is clear. It is impossible to speak to them on the phone and their written communications often have double meanings because of the poor language.

In regards to closing costs, they did not include their $375 application fee in the GFE, furthermore, they did not include a $400 survey. These things were mentioned (on the side or in parenthesis) but not included in the total, raising the actual closing costs by $775, back in-line with the other mortgage broker's costs. Hmmm. This is deceitful. When I asked about this, there was never any response.

Additionally, they were unable to process the loan in time and get it to the title company in time to close before the 30 day lock-in expired. They say they will pay any additional fee to extend the lock-in if it is their fault, however, they argue that nothing is their fault. Furthermore, after the 30 days had expired, they are now unable to meet the 45 day deadline imposed by HUD, and so the home is lost unless an extension is filed with HUD. You guessed it, they would pay if it is their fault, but this is not their fault. So there is another extension that has to be paid and again this is my fault somehow even though I gave them all requested paperwork back within the same day, every time, and I and my wife have credit scores of 789 and 794, plus we are putting down 25% on the home and have almost enough cash on hand to pay for it without a loan. How can we not get a loan quickly and on time when we do all these things?

The delays in fact were due to their incompetence, some examples of which follow below.

This company uses an "online" application. This was filled out by me and I was initially glad because I felt it would eliminate errors. Yet somehow, they have someone else go in and REFILL the application!! They made numerous errors and forgot to even include my wife on the loan. Then when they added her, they said that I owned her company. Finally, after the third time, I quit dealing with the loan processor and just filled the application out by hand, scratching out their errors, and writing in the correct information. This was unbelievable as it was just a simple matter of filling out a form for the application.

Next they would ask me for documentation, such as taxes from 2006 & 2007. I supplied al of their information in pdf format, via email, within hours of being asked. (I work from home and was able to do that) I asked them to confirm receipt, however they did not, so then I called them and found that they had received it, they just did not respond to the email!! So they had the information, and used some of it, however, about a week later, they asked me for my taxes again. So I forwarded the information to them, along with the email receipt from last time. Would you believe that they asked again, a third time, about a week after that?

There were other documents that they requested 3 times as well, such as proof of insurance on the lot we were going to buy I sent it three times, then about 3 weeks later, they asked for an actual application for insurance and I had to fill out an application with the insurance company and send it to them.

Further delays: The initial person we dealt with had such bad writing and communication skills that I often could not understand what the request was. I complained to the management and found that the person's boss as well as the owner had equal or worse communication skills, but I was given a person who had semi-good written English. However, this person normally responded to me, only at night. I would get communications and emails from them during the hours of 8PM till 1AM. I rarely got communications during they day. If this means they are working in a foreign time-zone or are just handling mortgages as a second income at night, I do not know, but delays are caused whenever you can only deal with someone at night because the rest of the business world is closed and requests and information are delayed until the next day. This happened a lot.

As a side note, I did find out that this company had hired my neighbor's son at one point. His only job was to correct their English in their correspondence. He though this might amount to something more, but eventually quit because he felt the job was going nowhere.

Currently, I am investigating whether they are really listed in Texas Monthly as one of the 10 most dependable mortgage brokers in Austin. I can't believe they would get by any amount of due diligence, no matter how small, without raising a red flag.

I am EXTREMELY disappointed in this company. PLEASE AVOID THEM as it is not worth the savings they promise on your loan. My wife and I are likely to loose the HUD home that we had successfully bid and I hope others can avoid this experience.

Big D
Austin, Texas
U.S.A.

This report was posted on Ripoff Report on 09/07/2008 01:21 PM and is a permanent record located here: https://www.ripoffreport.com/reports/austin-first-mortgage/austin-texas-78747/austin-first-mortgage-unreliable-unable-to-move-loan-forward-foreign-english-2nd-langua-370641. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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

#1 REBUTTAL Owner of company

first response, I have not review this consumer's full file.

AUTHOR: James Wu - (U.S.A.)

POSTED: Thursday, September 18, 2008

original complaints:

I chose Austin First Mortgage (AFM) because they had the best rate and lowest closing costs. However, upon further review, this was not a good reason for choosing a mortgage broker. According to their website, they were also listed in the April 2008 of Texas Monthly as one of the 10 most reliable mortgage brokers in Texas. (This has got to be a HUGE ERROR!!)

*********
Response:
We never have any law suite, no pending official investigation from any goverment agency, no any unsolved complain in BBB. No FBI investigation. You may find from news that how many mortgage companies get such things including a few big lenders.

We closed about 700 loan in year 2007 and have closed more than 450 in first 6 month while the total real estate transaction number is down.

Texas saving and mortgage lending department did two audits to us and we are still in business.

We have many more satisfied customers than not satisfied.
************

I don't know where to start with this company. Don't deal with them because they offer a good rate. If you speak to them for more than 5 minutes you will find that the person you are talking to cannot speak or write in English at least in a way that is clear. It is impossible to speak to them on the phone and their written communications often have double meanings because of the poor language.


************
My suggest is every one to have your own judge. If above complaint is true, how this consumer still send loan application to us. I admit some of us do speak English with accent. I believe that our English ability is better than many big banks customer services. Actually the person this consumer mentioned speaking semi-English was born and grow in Texas.
*************

In regards to closing costs, they did not include their $375 application fee in the GFE, furthermore, they did not include a $400 survey. These things were mentioned (on the side or in parenthesis) but not included in the total, raising the actual closing costs by $775, back in-line with the other mortgage broker's costs. Hmmm. This is deceitful. When I asked about this, there was never any response.



***************
The existing GFE is designed by HUD and we follow the standard form. The application fee is disclosed as POC (paid outside closing). we did not hide anything. Due to most transaction in Texas can use existing survey, if the borrower do not ask, we do not include survey cost in GFE. And as the title of the form, it is ESTIMATE. I think every knows English should know "ESTIMATE".

We do guarantee lender/broker closing in writing.
************


Additionally, they were unable to process the loan in time and get it to the title company in time to close before the 30 day lock-in expired. They say they will pay any additional fee to extend the lock-in if it is their fault, however, they argue that nothing is their fault. Furthermore, after the 30 days had expired, they are now unable to meet the 45 day deadline imposed by HUD, and so the home is lost unless an extension is filed with HUD. You guessed it, they would pay if it is their fault, but this is not their fault. So there is another extension that has to be paid and again this is my fault somehow even though I gave them all requested paperwork back within the same day, every time, and I and my wife have credit scores of 789 and 794, plus we are putting down 25% on the home and have almost enough cash on hand to pay for it without a loan. How can we not get a loan quickly and on time when we do all these things?



**************
Every loan can not close has a reason. I will find this case and investigate the reason and response later.

It is true that today's mortgage underwriting is much harder than before. FNMA has change the guideline just a few weeks ago.

We deal with big responsible lenders. But if the loan can not be approved, it just can not be approved. All lenders raise their bar to deny "high risk" loans. Some due to over re-acting the national mortgage meltdown.
*****************





The delays in fact were due to their incompetence, some examples of which follow below.

This company uses an 'online' application. This was filled out by me and I was initially glad because I felt it would eliminate errors. Yet somehow, they have someone else go in and REFILL the application!! They made numerous errors and forgot to even include my wife on the loan. Then when they added her, they said that I owned her company. Finally, after the third time, I quit dealing with the loan processor and just filled the application out by hand, scratching out their errors, and writing in the correct information. This was unbelievable as it was just a simple matter of filling out a form for the application.

*******************
The web site was managed by a big company "A La Mode" and many mortgage companies use its services. The problem in using it usually comes from old outdated computer, security setting (some security setting prevent private information on web site).

The initial loan application should be totally comes from the borrower's input and no change.
****************


Next they would ask me for documentation, such as taxes from 2006 & 2007. I supplied al of their information in pdf format, via email, within hours of being asked. (I work from home and was able to do that) I asked them to confirm receipt, however they did not, so then I called them and found that they had received it, they just did not respond to the email!! So they had the information, and used some of it, however, about a week later, they asked me for my taxes again. So I forwarded the information to them, along with the email receipt from last time. Would you believe that they asked again, a third time, about a week after that?

************
Most of our customers use electronic files and very few complaints. I do not know what is the problem for this borrower. I will investigate and response.
****************

There were other documents that they requested 3 times as well, such as proof of insurance on the lot we were going to buy I sent it three times, then about 3 weeks later, they asked for an actual application for insurance and I had to fill out an application with the insurance company and send it to them.

Further delays: The initial person we dealt with had such bad writing and communication skills that I often could not understand what the request was. I complained to the management and found that the person's boss as well as the owner had equal or worse communication skills, but I was given a person who had semi-good written English. However, this person normally responded to me, only at night. I would get communications and emails from them during the hours of 8PM till 1AM. I rarely got communications during they day. If this means they are working in a foreign time-zone or are just handling mortgages as a second income at night, I do not know, but delays are caused whenever you can only deal with someone at night because the rest of the business world is closed and requests and information are delayed until the next day. This happened a lot.

*************
To save time, (we are low rate and need to cut our cost), some of us do not check spelling (like me when I response this). It usually doesnot make misunderstand. As I stated above, the person with "semi-good English" was born and live in Texas for all her life. When we close so many loans with no big problem. I need to think this borrower has "good language" skill.

Our loan officers and processors are not working for one borrower. But we usually process income file in 24 hours (or say one business days), it is very normal and acceptable. If you need hire a loan officer/processor just work for you, it is really not a good idea to shopping rate.

In our online business section, all people are full time work for my company. They are hard working people. Stay late is usual.

Our official open hour is from 9:00am to 5:00pm. We always have staff in office to answer phone calls.
*****************


As a side note, I did find out that this company had hired my neighbor's son at one point. His only job was to correct their English in their correspondence. He though this might amount to something more, but eventually quit because he felt the job was going nowhere.

*********************
I do not remember that I hired some one just for coerrect english. I am not a native English speak. I may make some mistakes. I did not ask any one help in typing this response.

Only very competitive people work with us. I usually allow anyone qualify(like no criminal background) to have a try. So we do have some people once work with us and left. The people left are good hard working and earn above industry average by hard working.
****************

Currently, I am investigating whether they are really listed in Texas Monthly as one of the 10 most dependable mortgage brokers in Austin. I can't believe they would get by any amount of due diligence, no matter how small, without raising a red flag.

****************
It was on this April Texas Monthly by a research firm.
*********

I am EXTREMELY disappointed in this company. PLEASE AVOID THEM as it is not worth the savings they promise on your loan. My wife and I are likely to loose the HUD home that we had successfully bid and I hope others can avoid this experience.

***********
I am sorry that the loan not close. I will investigate and post response later. I believe that every loan not close has a reason.
**********



Big D
Austin, Texas
U.S.A.

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