Mortgage Lender Complaints And Bad Reviews By Borrowers

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Mortgage Lender Complaints And Bad Reviews By Borrowers

This BLOG On Mortgage Lender Complaints And Bad Reviews By Borrowers Was Written By Michael Gracz of Gustan Cho Associates

Legitimate Mortgage Lender Complaints And Bad Reviews

There are legitimate mortgage lender complaints and bad reviews, so don’t take me wrong.

  • However, those reading bad reviews whether it is from Chase Bank, Quicken Loans, Guaranteed Rate, or other larger national lenders that close and fund thousands of mortgages every year
  • These lenders have been around for many years need to realize that these large national lenders employ hundred or thousands of loan officers
  • The mortgage company can have the best loan products
  • The can also have the best operational systems and are customer service oriented
  • However, if a loan officer does not return client’s phone calls or worse yet, issues a sloppy pre-approval letter the outcome can be devastating
  • Home loan gets denied during the mortgage approval process due to the loan officer not being diligent on doing his or her proper qualifying the applicant, everyone’s life is affected

The Real Estate Professional Team

The home buyer, the seller, the buyer’s attorneys, the sellers attorneys, and everyone involved in the home purchase process can get bad reviews if the loan officer turns out to be incompetent.

  • It is not the mortgage company’s fault because a loan officer did not do the following:
    • calculate the debt to income ratios correctly
    • did not research the recorded date of the foreclosure where the borrower did not meet the mandatory federal waiting period after foreclosure requirements
    • did not take into account child support payments
    • did not negate the unreimbursed expenses from the gross income
    • did not take into the account the spouse’s debts in a community property state
    • or issued a pre-approval on a manual underwrite file without verification of rent (manual underwrites require verification of rent)

Importance Of Mortgage Pre-Approval

A sloppy pre-approval letter is the main reason for an 11th hour mortgage loan denial by lenders.

  • Now the borrower did the following due to trusting the loan officer’s pre-approval:
    • paid the home appraisal
    • hired movers
    • changed schools for their children to a school district they are moving to
    • gave their landlord’s notice that they will move out
    • the landlord has a new tenant moving in
    • have notified the utility company to set up new service to their new home purchase

Then they get a mortgage loan denial by the mortgage underwriter because the loan officer did not qualify the applicant correctly in the first place. People do not have to be a rocket scientist to figure out that the borrower will be more than livid and will not just blame the loan officer, but the mortgage company will be the main blame. This is how mortgage companies such as Quicken Loans, and Guaranteed Rate get bad reviews and complaints plastered all over the internet.

How To Avoid Mortgage Lender Complaints And Bad Reviews

One pissed off borrower can cause so much damage.

  • This is because they do not just post it on one website like The Rip Off Report but will copy and paste and post it on Yelp, Zillow, Trulia, Realtor dot com
  • They will spread their feeling to every available real estate and mortgage websites, blogs, and forums as well as social media sites such as FaceBook, Twitter, Linkedln, Tumbler, Stumble Upon, Reddit
  • Google and other search engines love complaints and bad reviews
  • These complaints are normally posted on the first page of every search engines
  • As a former corporation owner and being an employer of over 150 employs, I am well aware that if we cannot please one customer and that customer is extremely upset, he or she will tell ten or more friends about how bad their experiences were
  • If a customer is very satisfied and happy with your services, he or she may tell one or two about how good the company is
  • An unsatisfied consumer now has access to the internet which one bad review and/or complaint can go viral and ruin one’s reputation

How Mortgage Loan Originators Receive Complaints And Bad Reviews

On the flip side, an extremely diligent loan originator can do the very best they can.

  • Many really care for their borrowers and their families
  • But due to the mortgage company he or she works for, may get bad reviews and complaints against him
  • I will tell you a short story why I left my previous mortgage company and avoided potential complaints and bad reviews
  • I take every borrower like a family member and no matter what
  • Letting them down is not an option
  • Borrowers trust their loan officers with all of their financials and count on them in closing their loan
  • The previous employer I was with was a smaller mortgage brokerage shop
  • They hired a bunch of loan officers at the same time
  • So their back office operations were not organized
  • I had over 30 files on the pipeline
  • Some of these files were not even touched for over a week or two
  • I knew this can be a major disaster
  • It was like pulling teeth trying to have management cooperate with me
  • I knew if I did not make a move, that disaster will happen
  • Later with the bad reviews or complaints but getting these folks into their new home purchase was my main goal
  • After extensive research, I chose to go with a different mortgage company 
  • I am proud to say that I have salvaged all of my files
  • Many needed extensions
  • All of my borrowers understood and supported me in my decision to make a move to a reputable national mortgage banking firm.

Mortgage Lender Complaints And Bad Reviews And How To Avoid Them

One of the best ways to avoid poor reviews by borrowers is to always keep borrowers updated on the progress of the mortgage process.

  • Always be available 7 days a week, evenings, and weekends
  • Always return phone calls and/or return emails promptly
  • Whenever a borrower calls me and I am really tied up and cannot answer their phone calls, I will text them and tell them I will get back to them shortly
  • Loan officers need to realize that their borrower depends on them and trusts them with all of their credit and financial information and on the flip side cannot let them down
  • Place yourself in the borrowers shoes
  • The mortgage application and approval process is one of the most stressful process that anyone will go through in their lifetime
  • A lot of lives are at stake, from the home buyer to sellers to the real estate and mortgage professionals involved in the real estate transaction

My Experience With Mortgage Lenders

As a mortgage loan shopper or a consumer shopping for any other goods or services, most folks turn to Google and the search engines to do their due diligence.

  • Say for example someone refers a loan officer, the chances are consumers will Google the loan officer and find a lot of his or her background on the internet
  • Along with the individual loan originator, consumers will most likely find reviews about the company the loan officer represents
  • Many times, applicants contact me and tell me that my individual personal reviews are excellent but there are mortgage lender complaints and bad reviews with the mortgage company I am employed with

Knowing The Public Consumer

Again, mortgage shoppers need to look at both sides of the story like I did when researching for a mortgage lender to work for.

  • If I wanted a mortgage company with zero complaints, then it had to be a mom and pop lender that does very little volume
  • I found out that larger national mortgage companies that do thousands of loans each year all have complaints
  • Most of the complaints are not because of the mortgage company but because of the individual loan originator
  • I am not saying that the mortgage company that I work for is perfect, but to me, there is no other mortgage company that is a larger lender that has no mortgage lender complaints and bad reviews

Look At Both Sides Of Story When Reviewing Mortgage Lender Complaints And Bad Reviews

Consumers surfing the internet encountering bad reviews or complaints against a mortgage lender, please look at both sides of the story. Is the complaint legitimate? Is the complaint geared toward the loan officer or is it the mortgage company? Does the complainant have their contact information on the complaint or is it from an anonymous complainant? Sometimes the competition or disgruntled former employee may go on a rampage and try to seek revenge and try to slander a company because they got fired due to incompetence or wrongdoing. The mortgage industry is extremely regulated and whether it is. All lenders are closely monitored by federal and state mortgage regulators. Random audits is conducted and if there are any violations of mortgage lending guidelines, the fines can be hundreds of thousand of dollars if not millions. Hope this article helps when searching for a loan officer and lender.

  1. J D Cargill says

    Gus, congrats !! Sounds like you are doing great … I am back in the area and may have some referrals for you … Best regrads to you and your family …

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