Posted by CopperheadVA on 3/26/09 5:46am
Msg #282171

Two no-signs in two days!

Both were because the L/O had not gone over the loan terms with their borrower before hand. The first one on Tuesday, the payment for the new loan is more than with the current loan. Borrower was not paying off any credit cards or getting cash out - simply just refinancing for a lower rate and a lower payment! However, $50 per month in mortgage insurance was now included in her payment - not sure if that was the issue or part of a bigger issue. L/O said, "Maybe your property taxes went up?" Borrower responded that her home has lost $40K in value since she last financed. Borrower decided not to sign until they could get some clarification.

Second one was last night. It was the L/O's second deal she had ever done. She had told Borrower earlier in the day that the Amount Financed on the TIL was his entire loan amount, including all closing costs and such. Of course the loan amount was more - I tried explaining it to the borrower several times but he just didn't get it. He also was not prepared that there are closing cost fees associated with getting a new loan, so when he saw that his closing costs were $11,800 (including up front PMI premium) he was completely shocked. L/O was unfortunately too inexperienced to speak to him knowledgeably over the phone. She advised him not to sign and she would contact him the next day.

Oh, how reminiscent of the good ol' days when you arrive with the paperwork and the Borrower says, "That's not what my L/O told me!" Waste of everyone's time and resources.

Reply by Linda_H/FL on 3/26/09 7:58am
Msg #282178

Re: Two no-signs in two days!..that's a shame...

So far mine haven't turned into a no-sign, but I HAVE noticed lately that the closing costs are astronomical....I'm talking $10-13K on straight refi's, not reverse mortgages...and no, no back taxes included....

I was sure a couple of the borrowers would walk but, surprise surprise, all signed...

Reply by Gary Boehm on 3/26/09 8:35am
Msg #282180

Two no-signs in two days!

I had one like that about a month ago. After the shock of everything on the HUD, boy did he ever scrutinize every page after that and complained about something on each one. I was sure it was going to blow up at any time! And was I ever glad to walk out the door with that one in hand (it was a long drive).

Reply by Carole Breckbill on 3/26/09 10:22am
Msg #282187

I've only had one recently (thankfully!). Do people not receive a good faith estimate during their application process?