Home Buying in San Ramon>Question Details

nashenakhteh1, Home Buyer in San Jose, CA

closing of escrow

Asked by nashenakhteh1, San Jose, CA Fri Nov 16, 2012

Hello,
Based on what our mortgage broker suggested, we have to get the mortgage from Fremont bank. There is an error in our credit history that prevents automatic underwriters from approving our loan.We were told that Fremont bank is the only bank in California that does Manuel underwriting.I was just wondering if someone has any experience with this bank.
their reviews in yelp is bad and the customers said it takes a long time to get approved for mortgage through Fremont bank. do you know how long the process takes if we get mortgage from this bank? do you know if they are good? assuming that the appraisal is already done how long will it take to close escrow if we get the mortgage through Fremont bank?
Thank you in advance

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In my opinion, we’ve evolved into a nation of survey gatherers and consensus decisions makers – and Yelp has played a horrid part in this decline. We don’t make our own decisions anymore. I used to work for a national food retailer – as sign in the back room stated, “If a customer likes something, they’ll tell 1 person. If they don’t like something, they’ll tell 100.”

How true. In reality, Yelp only posts the reviews that meet their criteria – if you go to our Yelp site, as an example (http://www.yelp.com/biz/the-medford-team-castro-valley-2), only certain reviews are posted – the really good reviews are hidden because they are “too good to be true.” Or so Yelp says. So only 3 of our reviews are visible, while we’ve had numerous others. I wouldn’t trust Yelp for a second.

The largest problem with Yelp reviews of lenders is that they are written by consumers who don’t have the first clue about what really goes on “behind the curtain” in underwriting. They don’t see all the efforts of their mortgage broker working hard to gather all the necessary information (and SO frequently, borrowers take FAR too long getting critical data to the lender or dillydallying filling out and signing disclosures, etc.). Borrowers don’t understand why underwriters ask for specific things and fail to comprehend the delays they cause when they don’t immediately respond and get the required items back the same day they are requested. And on and on and on …

And don’t think it’s going to get any better. In fact, there is growing sentiment amongst lenders to weed out “marginal” borrowers – so any delays in returning items or credit issues will only make things worse.

And, to be honest, what bank does NOT have rotten reviews currently? Lending has become SO difficult that it’s almost unheard of to get a loan closed on time anymore. Even the best lender I personally know has difficulty because of delays in appraisals, incomplete information from consumers, credit issues that need to be resolved, underwriting delays and SO much more. Lending has become a veritable minefield.

As an example, if the listing agent fails to ensure that the hot water heater is strapped correctly, smoke detectors are where they need to be and the correct number of CO detectors are not only present but INSTALLED CORRECTLY before the appraiser visits the home (some many listing agents leave them on a counter or plug them into an outlet in the living room – which is NOT going to pass muster with the appraiser) … then the appraiser needs the items corrected and will need to make a second visit to clarify … which causes delays that have NOTHING to do with the lender … and costs the buyer an additional hundred bucks or so …

For the record: Fremont Bank is an awesome community bank with a great reputation. The length of time it takes to get any transaction closed has to do with a large number of factors that differ with every single transaction and borrower. If your broker states you need to go to Fremont Bank, I’d toss the ridiculous Yelp reviews aside and beat your way down to Fremont Bank as quickly as you can.

Additionally, for anyone else reading this response, MAKE SURE you take the time to get credit issues resolved BEFORE you go looking for a home … prudent potential homebuyers check their credit LONG before they start shopping and work with their prospective lender to get any credit issues resolved in time so there will be no delays.
1 vote Thank Flag Link Sun Nov 18, 2012
I have just had a loan that has an error in the credit history that is killing our DU feedback.
The previous mortgage had a foreclosure. This foreclosure was 6 years ago.However,the borrower hired a company to clean up the previous bad credit. This incident was 'opened up' by merely showing it as a dispute and alerts the DU approval system that the incident was in the past 24 months.

Freddie Mac does allow for manual underwrites.

Fremont Bank: they do go slow, although they do give priority to purchases. This one may go slow as it has to be manually underwritten.
Also, you may be only eligible for a portfolio loan with them.
0 votes Thank Flag Link Mon Nov 26, 2012
I don't know what error that could be that would not allow for an automated underwriting approval from Fannie Mae, but most any lender can handle a manual underwrite. In fact, when seeking the automated approval, it should be able to dictate within that system the need for a manual underwrite.

As for Fremont Bank, they are a great community bank and I have many friends there. They, like many lenders currently are experiencing longer approval, underwriting and appraisal timelines due to the increase in volume.

Overall, many lenders should be happy to help you -- good luck!
0 votes Thank Flag Link Sun Nov 18, 2012
A lot of banks do manual underwriting... I havent had any clients use them...
0 votes Thank Flag Link Sat Nov 17, 2012
Plenty of other lenders will do manual underwriting besides Fremont Bank. Fremont Bank tends to focus on high volume refinances and call centers to drive their mortgage business. Their rates are competitive but I would anticipate the service not being as good as other lenders and that purchase business is not their focus. To be fair, most lenders are not going to have a lot of raving reviews online considering the lending environment we are in.
0 votes Thank Flag Link Fri Nov 16, 2012
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