I went to a mortgage broker I had used twice before. This time for a Cash-Out REFI. After supplying all fo the requested documentation.

Asked by jchavers1, Anaheim, CA Wed Feb 13, 2013

He told me that other than supplying another bank statement or pay stub before closing; everything was done but the appraisal and that would determine how much money I would be able to pull out of the house. I have the home 50%paid off. Then he called me and told me as a condition of the loan I needed to call up CITI bank and tell them I needto close my card account, and to send me a letter indicating the account was closed, and what the payoff was and it would be paid off at the closing in 30 days. 4 days after I called, and closed the account as I was instructed. The loan officer alerted me to the fact that they could not verify my 2011 Taxes were filed. I went to TAXACT and printed my return and found the credit card debit for the e-file, but I never looked for the $44 refund (wish I had); because they never e-filed and I never checked. I feel like this was highly unethical to tell me to close the account; if items like this were not verified first. If I had any idea that there was

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lendersnetwo…, Agent, Plano, TX
Tue Oct 1, 2013
Good idea to speak to a couple of Lenders in cash this happens. I can refer you to a few lenders that can help you with a cash out refi..
1 vote
Julie Rice T…, , San Mateo, CA
Wed Feb 13, 2013
It is unfortunate that your mortgage broker got a bit ahead of himself with your loan conditions. However, as you can imagine, it is highly unusual for someone to have not filed their 2011 tax returns, and not to know about it. I do not think that this error makes him unethical, just as you not knowing your that your 2011 tax returns were not processed does not make you irresponsible.

File your tax returns, wait a month for the IRS to have a chance to process them, and proceed with your refi. It sounds as it closing your Citi credit card is something you need to do in order to qualify for the refi, whether it be today or 2 months from now. The more time that passes between closing your Citi card and your refi, the easier the refi will be.

Good luck!
Julie Thall
1 vote
Russ Ravary, Agent, Commerce Township, MI
Wed Mar 6, 2013
Yes the loan officer was just telling you what the underwriter was telling them. Unfortunately sometimes underwriters piece meal things instead of doing their job right. Sorry for your frustration
0 votes
, ,
Wed Feb 13, 2013
Here's the real story. As a Mortgage Broker, if a Loan Officer brokers your loan to a lender, they are usually blind as to what the Underwriter can or may request. In cases like ordering your 4506-T from the IRS, most lenders require that they order and receive the IRS Transcripts as part of their QC Process. This is why I decided to work for a Direct Lender. As a LO working for Mortgage Banker, I don't get these surprises unless I am not up to date with my Guideline Chances put out by my Investors. For example, we order the 4505-T upfront. You see, we Mortgage Bankers fund your loan, but we sell the loan servicing to one of the Big Boys. It's my job to know definitively what those guidelines are, which investors have overlays and which ones don't. As a Broker, the poor LO at times is as blindsided as you the consumer is. I would have never EVER requested that you payoff and close a credit card account. That's a no! no! Sorry for your frustration. FYI, there are remedies for consumers when the transcripts are not showing up. You can call TAS, they can and have helped out many of my clients in this situation.

Best of Luck!
0 votes
I understand the credit pull for the REFI is good for 90 days, and I still might get this done sooner than later. I am NOT one that runs around suing people to see what I can get, but feel in this case there should be consequences so they are reticent to do this to another client. Is there any recourse? The lender is apologizing profusely and the broker "is no longer with us". They claim they want to give me a GREAT EXPERIENCE, but I am leery that they are just trying to protect themselves from liability. Is this correct or is there no recourse against the lender/broker and they are wanting to take care of a wronged customer. What should I expect from this lender if they want to give me a great experience?
Flag Wed Feb 13, 2013
what is TAS?
Flag Wed Feb 13, 2013
, ,
Wed Feb 13, 2013
What a frustrating experience for you! Usually tax transcripts are ordered at the beginning stage of the loan process. This allows the IRS to provide confirmation that the returns provided by a borrower match what was actually filed. Early ordering of the tax transcripts prevents such problems as you experienced. Also, any accounts needing to be paid and closed as part of the refinance process are typically handled at the closing stage when your file moves to loan docs. It's possible that both your mortgage broker and the lender he submitted your file to were overwhelmed with business and unfortunately your transaction suffered because of it. In this business, the devil is in the details and the smallest things can trip up a loan. This is not an insurmountable issue however, rates have now moved up. You may not end up with the rate you were hoping for. Why not file both 2011 and 2012 returns right away so you can move forward with your refinance before rates increase further.

Please feel free to contact me if you have any more questions.

Tracy Willliams
Mortgage Consultant
Kinecta Federal Credit Union
310 489-2549
0 votes
Lori Hanson, Agent, Aliso Viejo, CA
Wed Feb 13, 2013
Wow, how lucky are you that doing the refi you found the tax return problem from 2011. Its hard to believe that it wasn't called to your attention by the IRS already.
0 votes
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