Home Buying in Sacramento>Question Details

Chris Butcher, Real Estate Pro in 95816

Can a lender's technical issue related to wiring money reasonably and in good faith take a week or more to resolve?

Asked by Chris Butcher, 95816 Mon Sep 23, 2013

We were supposed to close on Sept. 20. We have signed all closing docs, wired our money, and the lender signed off on everything. The lender just needed to wire the money to title.

Lender has said they are having technical difficulties wiring money. No one has been able to explain the actual issue, but they have said fixing it could take up to a week.

I can't come up with any reasonable justification for a technical issue, related to wiring money on a loan that has been approved, to delay the wiring of money by a week. I am curious if: (1) this story seems fishy or if technical issue could reasonably cause this type of delay, and (2) if I have any recourse?

Also, could a lender cut a cashier check or take other action to address a technical issue related to wiring assuming such an issue was actually occurring?

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Answers

17
Something does not sound right. Wiring money is not usually a problem unless they have a wrong escrow number which this does not sound like the case. If they are wiring from outside the US could take a day or two but inside the US within 24hours if everything is approved. I would suggest you escalate that ASAP.
1 vote Thank Flag Link Mon Sep 23, 2013
I finally received a call from Nationstar. I've been told they implemented new software and that an issue with the software has caused a portion of their wires not to go through. The issue arose last Friday yet they still haven't resolved it and have to manually wire (not sure what that means) money when the software issue occurs. They said they "fully expected" to be able to wire yesterday, which didn’t happen. They have now "promised" it will be wired tomorrow. Hopefully, this latest promise is real. While they are apologetic, I do not feel there is any justification for this delay especially for a publicly traded company like Nationstar.
0 votes Thank Flag Link Tue Sep 24, 2013
Sounds horrible. I hope you don't continue to have these issues with the mortgage! Let us know if it gets funded.
Flag Fri Sep 27, 2013
September 20th, a Friday, to Monday September 23rd when Mr. Butcher posted is only ONE business day. Some clerk that could not understand the cause of delay gave Mr. Butcher a worst case scenario estimate of a week.
I wish that closing delays were very uncommon, but they are not. I have seen wires delayed for several hours due to technical issues, personnel issues, homeland security issues, or whatever. I have come to the conclusion that these delays are more for the benefit of the funding company holding onto money longer than they need to to save a few dollars of interest by not drawing on their warehouse line until the last possible moment.
I have never seen the delay go past a full business day either, though. A full week could open the offending lender up to an investigation.
0 votes Thank Flag Link Tue Sep 24, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Sounds like you are getting the run around. If your lender isn't giving you the right answer ask to talk to someone else at the company.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes Thank Flag Link Tue Sep 24, 2013
I've asked them to answer many questions. Still very few answers have been provided but a SVP of Nationstar wrote me an email stating "I fully expect this wire to go tomorrow....it is my highest priority funding tomorrow and I've escalated it to the highest levels." While I still don't understand the issue, I hope that I can trust the SVP's word that the money will be wired tomorrow.

Thank you all for your advice. If it is more of the same tomorrow and nothing happens, I will contact the Bureau of Real Estate (BRE) and Dept. of Corporations as suggested.

I will provide an update tomorrow for those of you interested in the outcome.
0 votes Thank Flag Link Mon Sep 23, 2013
Good Luck Chris. hopefully its resolved.
Flag Tue Sep 24, 2013
Thanks Chris and good luck!
Flag Mon Sep 23, 2013
Contact the Bureau of Real Estate (BRE) immediately. Follow up with the Dept. of Corporations. This is totally unacceptable and needs to be corrected immediately. The other responses regarding warehouse funds and Loan Banker lines of credit are right on point.

Rick Otto
Rick Otto and Associates
Real Estate Sales and Property Management
http://www.rickotto.com
(916) 484-0955
rick@rickotto.com
0 votes Thank Flag Link Mon Sep 23, 2013
This is very unusual. The lender should be all over this and fix it by themselves. That is of course if they are a good lender that respects their clients.

Have they said anything about their solution? Or are they just letting the deal die?
0 votes Thank Flag Link Mon Sep 23, 2013
Chris, this is very unusual in my experience for a lender to have wiring issues. I am surprised a Manager or Supervisor of your Loan Officer did not become idirectly nvolved and have this close timely. I have never personally had a wiring issue by a funding company but I suppose it could happen. The red flag here is it taking a week or more to resolve.... Who pays all the costs associated with that? I would recommend you communicate directly with management of the company and strongly "encourage" an expedient close!.You don't want unexpected costs and fees charged to you!
0 votes Thank Flag Link Mon Sep 23, 2013
I'm going to add another question...what government organization manages the performance of lenders? Is it also BRE in California? If the executives in the lender company are not responding, I'd check there as well.

That's terrible.
0 votes Thank Flag Link Mon Sep 23, 2013
I guess the only reason why they cannot wire the money is because they have exhausted there warehouse lines and are waiting for funds to release so they can close your loan.
0 votes Thank Flag Link Mon Sep 23, 2013
Nationstar is the Lender. C2 Financial is the mortgage brokerage. I was told I would recieve a call from a SVP at Nationstar to explain what is going on... I've been waiting on that call since Friday. I've tried calling general contact numbers at Nationstar and they've provided no help.
0 votes Thank Flag Link Mon Sep 23, 2013
If your lender is a mortgage banker, they may be having a problem with their warehouse line.
A mortgage banker funds their loans with their own funds or a warehouse line (a large equity line). These funds/lines are paid back as the loans are sold to investors.

If you lender has a pipeline that has exhausted their funds or equity line, you may, likely be waiting for them to replenish their ability to fund.

This is a clear example of keeping lines of communication open. The lender should be telling you all what is exactly going on and why the wait.

Demand an answer. It may not change the situation, but, at least you will know what is the real story.
0 votes Thank Flag Link Mon Sep 23, 2013
Hi Chris,

As others noted, sounds fishy. Seems lenders always make up ridiculous stories to cover themselves.
I have never heard "the system is down" so often in any other industry.

I hope it pans out for you.

Best,
David
0 votes Thank Flag Link Mon Sep 23, 2013
Sounds a little odd, is this a big lender or a small investor, in which case do they the funds?
0 votes Thank Flag Link Mon Sep 23, 2013
I've seen wires get misplaced by the receiver - this unfortunately is more common than what you are experiencing. My suggestion is always escalate the issue to a manager who can change the current situation. There is definitely someone at the bank who is capable of moving things forward asap.

Mario Pinedo, CCIM
Mortgage Banker
CS Financial
http://www.HomeLoans.LA
http://www.HouseLoansLosAngeles.com
http://www.CondoLoansLosAngeles.com
BRE Broker 01118365
NMLS 1029116
Office 424-249-7434
Cell 415-269-6249
mpinedo@csfinancial.com
0 votes Thank Flag Link Mon Sep 23, 2013
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
MVP'08
Contact
It sounds very fishy.

It also sounds like poor customer service. As you note, there are other ways of transferring the money.

What does your Realtor say/advise?

Hope that helps.
0 votes Thank Flag Link Mon Sep 23, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Please tell us the name of this bank so none of us will ever bank there. This sounds absurd to me.
0 votes Thank Flag Link Mon Sep 23, 2013
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