Our first rate lock expiration was January 19. I was working with a very nice processor to get my loan processed. She's the go between me, the consumer, and "they" the underwriters who actually look at all of the paperwork and process my loan. We were applying in a new "less paper" mortgage refinance option called "Fast Track" since we were long time customers in good standing with good a good credit rating. The loan application took 2 hours! But almost no paperwork was required from us in the process (priceless!).
Long story short, I'd get those annoying emails on how "my loan needs I close before my rate expires"... However all this paperwork jazz is really outta my control once I send them what they have asked for.
So my application was taken in October over the phone by a rep. in Arizona. I've been in touch via email weekly with the bank. There system tracks these communications. When in December, my closing wasn't happening I wrote an "email of concern" to the girl who took my application. She said we "might close my loan even faster. I'm on the fast track to approval." Then I wrote again in January.
"We have only 7 days until the rate lock period ends. Please advise. It doesn't look like I'm going to close my loan in time" She wrote back: "if needed we can extend our rate lock."
I wrote back: "We are long time HAPPY Bank of America customers. Since we locked my rate in October (now January) rates have fallen. Since its the underwriting side taking extensive time processing my loan, I'd like to request a revised more current rate."
Of course I know they won't/can't do this. And they shouldn't charge me any fee (generally 1 point (that's 1% of your financing amount), in my case $1,500) to extend the rate either!! She said they'd extend the rate "as a courtesy." So I write back an extensive email asking for at least a "credit" of any sort to my loan for the undue burden, email highlights include:
"I've consistently received emails saying the processor is "checking on third party stuff." I have submitted all my required documentation for the loan expediently. We are long time HAPPY Bank of America customers, not typical in banking these days. Any service issues in the past have always been resolved and we stay because of this kind of good customer service. The issues and delays are not your fault or mine, they are a failure of the system!
Our loans been in process 75+ days. The rate lock is "not a promise to close," but it is a commitment of delivery of my loan to your investors.
Your loan documentation rate disclosure says on page 7 "we will do everything we can to provide our customers with excellent customer service, and address and concerns regarding your loan."
I am asking for a financial incentive to finish the loan. I realize you can't give me a new rate, but you can certainly offer me a credit towards the loan. Every bank has a policy to cover issues around Rate
Locks. Please see what you, or your supervisors can do."
They offered me my existing rate plus 1.5 point credit to my loan (that's 350$).
But don't get too excited. The paperwork processor was charging me incorrectly on the revised extended rate lock ($1,000) and no sign of the credit. It was on the revised document called the "Good Faith Estate." My credit should've put me 900$ ahead. Getting this issue fixed went on until the night before closing, when my Good Faith Estimate still showed a new $1,000 charge for my rate and no credit as was promised. So what do you - an average consumer do? Start dialing UP.
Every email and voicemail had at the bottom the name of the immediate supervisor for the representative I was working with and their phone number of email address. Use it!! So I called up, and every supervisor had a supervisor, I called them too. I left voicemails up the chain 6 people until the last guy had no email or phone number to give me. He was apparently a "Big Boss."
Briefly my voice message was this, but if I emailed the below text to the supervisors, it was followed by the email trail as mentioned I this blog of my discount toward my loan because of the "system failure."
"I am desperately calling because I am in the loan pipeline for nearly 4 months, and it's the Friday night before my Saturday closing which I need to reschedule again, because 1. my application is being INCORRECTLY charged a point for a rate extension which you the bank initiated. And 2. my $1,500 credit has still not been applied. Please help me resolve this issue. I am calling supervisors because I don't know what to do anymore, can you help me get my APPROVED loan closed?!?!"
Well, at 7:30 am Saturday I got a call from a very nice supervisor who was All.Over.My.Loan!! He repaired the rate charge, applied my credit (and then some).
Steps to negotiating with the bank:
1. Persistent and polite.
2. Playing a little stupid helped too.
3. Don't give up
4. Use information about "customer service" to help your cause too, it's probably written in the loan documents disclosures. Those are worth reading! They saved us $3,000 in closing costs.
5. Don't threaten to leave or walk away, because no one wins then.
6. Finally, go up the chain of command. It takes time, you'll tell your story 100x's, and maybe to 3 supervisors up, but take whatever help your offered!
Make mistakes, breath, and don't forget to laugh.out.loud.
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