Loanleaders of America, Inc. Refinance bait and switch Santa Ana, California

The qualification processes for all borrowers are heavily regulated not only by the Federal Government but also the individual state specific jurisdictions as well. Having said that, I would like to point out the following for all audiences. When it comes to qualifying a borrower and quoting a rate, the licensed Loan Originators of Loanleaders of America are subject to the standard principles of all lending practices.

There are several major variables which can influence the borrower’s final interest rate. 1) Fico Scores. 2) Income qualification. 3) Appraised Value. Not to mention the constant roller coaster ride of rates going up and down and the lender guidelines.

If the borrower decided not to lock in the rate that was initially quoted during the qualification process, the final rate could have changed. All loan originators of Loanleaders of America inform their clients of the fluctuating rates. They also advise their borrowers that by locking in their rate, they are able to secure the initial rate quote that was provided.

The value of the property would also have a factor on rate. For example, if a borrower stated that his/her property is worth $100,000.00 and the actual property value after a full appraisal was conducted andrendered an amount of $80,000.00, then the rate would also be influenced by the lower value of the property being financed.

Also if the borrower originally stated that his/her income was for example, $6,000 and it was later verified to be $5,500, than the rate would also be influenced as well.

The qualification process and the quoting of an interest rate are subject to what a Loan Originator is told initially from the borrower. Based on the information provided by the borrower, the loan originator would run the scenario through the LOS (Loan Origination Software) and the pricing engine to determine and quote a rate.

In order to lock or secure a rate for a limited amount of time, the initial information has to be verified through a comprehensive documentation review process. During this process, if the initial information stated to the loan originator is off in areas like income or the final appraised value of the property, then the rate would be adjusted accordingly.

In simple English, if a customer called a mechanic for an estimate on the cost of replacing a set of brake pads, the mechanic will ask the customer things like, the make and model of the vehicle, as well as the current mileage, and the driving habits of the customer.

The customer is given an accurate estimate based on the information he/she provides to the mechanic. Once the vehicle is fully inspected and the mechanic realizes that the car had more miles than initially told, and based on the wear and tear patterns of the brake pads and tires suggests that the car spent a lot of time in stop and go traffic, the mechanic’s original estimate may change.  The mechanic may require the rotors of the vehicle to be replaced instead of it simply being resurfaced etc…

If there was a slight change of interest rate by 0.5% or half a percent, the borrower is always provided the justification as to why the rate has changed. I hope the audience will realize that as a company a .5% change in rate was by no means worth losing a customer. We hope that the customer will realize this.

The qualification processes for all borrowers are heavily regulated not only by the Federal Government but also the individual state specific jurisdictions as well. Having said that, I would like to point out the following for all audiences. When it comes to qualifying a borrower and quoting a rate, the licensed Loan Originators of Loanleaders of America are subject to the standard principles of all lending practices.

There are several major variables which can influence the borrower’s final interest rate. 1) Fico Scores. 2) Income qualification. 3) Appraised Value. Not to mention the constant roller coaster ride of rates going up and down and the lender guidelines.

If the borrower decided not to lock in the rate that was initially quoted during the qualification process, the final rate could have changed. All loan originators of Loanleaders of America inform their clients of the fluctuating rates. They also advise their borrowers that by locking in their rate, they are able to secure the initial rate quote that was provided.

The value of the property would also have a factor on rate. For example, if a borrower stated that his/her property is worth $100,000.00 and the actual property value after a full appraisal was conducted andrendered an amount of $80,000.00, then the rate would also be influenced by the lower value of the property being financed.

Also if the borrower originally stated that his/her income was for example, $6000 and it was later verified to be $5,500, than the rate would also be influenced as well.

The qualification process and the quoting of an interest rate are subject to what a Loan Originator is told initially from the borrower. Based on the information provided by the borrower, the loan originator would run the scenario through the LOS (Loan Origination Software) and the pricing engine to determine and quote a rate.

In order to lock or secure a rate for a limited amount of time, the initial information has to be verified through a comprehensive documentation review process. During this process, if the initial information stated to the loan originator is off in areas like income or the final appraised value of the property, then the rate would be adjusted accordingly.

In simple English, if a customer called a mechanic for an estimate on the cost of replacing a set of brake pads, the mechanic will ask the customer things like, the make and model of the vehicle, as well as the current mileage, and the driving habits of the customer.

The customer is given an accurate estimate based on the information he/she provides to the mechanic. Once the vehicle is fully inspected and the mechanic realizes that the car had more miles than initially told, and based on the wear and tear patterns of the brake pads and tires suggests that the car spent a lot of time in stop and go traffic, the mechanic’s original estimate may change.  The mechanic may require the rotors of the vehicle to be replaced instead of it simply being resurfaced etc…

If there was a slight change of interest rate by 0.05% or half a percent, the borrower is always provided the justification as to why the rate has changed. I hope the audience will realize that as a company a .05% change in rate was by no means worth losing a customer. We hope that the customer will realize this.

Loanleaders has been in business for 15 years and they have an A+ rating with the Better Business Bureau. This specific borrower held off on locking his rate and when rates started to rise in the 3rd quarter of 2010, he lost the initially quoted rate of 3.25%. When he finally decided to lock the rate had increased to 3.75%. The rate was redisclosed, but they borrower chose not to do the loan. Rates are very volatile, especially in our current market conditions. If you are not locked, rates can rise on you. The borrower never went to the closing table. He chose not to sign the "Redisclosures".