Let me preface this post with there is absolutely no talk about loan programs, interest rates, or market trends. This is a flat out rant about something that is all too common in my daily work life and I’m getting sick and tired of it…Big Bank Business. Here’s what happened…
Brenda Borrower called me asking what exactly banks look for when trying to qualify a person for a loan. She sounded super flustered on the phone and she told me that she had recently applied for a home loan at Big Bank in America as well as a Big Bank Far from Wells, and they had both simply run her credit.
I asked her about the application and to clarify what she meant by “simply run”. Brenda told me that was it. There was no application form, just a credit check. They ran her credit and never called, emailed, or asked her to come in to discuss her options after that.
I sat there and scratched my head and said to myself ”Self, maybe she has bad credit. Why else would they turn her away?” I bit the bullet and asked Brenda about her credit. She listed her scores for me “I have a 670, 655, and a 580″.
Believe it or not, that’s not bad credit (For More On Credit Read “Bad Credit…Is It Really That Bad?“), I explained to her that all she needed to apply for a loan was a middle credit score greater than 620 (in her case it was a 655).
I still couldn’t put my finger on why those Big Banks didn’t qualify this lady for a loan. Brenda had a healthy financial portfolio, good credit, and a steady job. The mystery continued…
The next day I had another borrower call me, and the day after that, and the day after that…all from the same Big Banks, all with the same complaints. I finally put two and two together! It wasn’t that Big Bank could not qualify these people, it’s that Big Bank just didn’t care. After all, they’re Big Bank and they’re too big to fail.
So to you dear Fat Cats at Big Bank, continue to ignore your customers because it’s bringing them to me. Just keep on pretending that it’s “high times” and that the little guy doesn’t matter. Your day will come Goliath, and know that your day is coming very soon because this David loves it when people underestimate him.
Do you think this is a fair representation of Home Loan Service at a Big Bank? Do you agree or disagree? If you have a similar story to share please post it here by entering a comment below.
Christopher “Doc” Apodaca can be reached on his cell phone at (714)244-7368 or via email at ChrisA@BroadviewMortgageCorp.com.
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I totally agree, big banks don’t care. But I think this our legislators and president’s fault. they are not governed but when they even hint at that they are failing they get bailed out….
I contacted my bank for a loan modification, I am struggling to pay my mortgage. I was told that my payment had to be 31% ratio and I am @ 30%. I also asked if they could take away the PMI since I have been in the house for two years. I did this in December 09. I was denied because my two year anniversary would be in January 10. This past week feeling desperate because I am short on my mortgage, I contacted the bank. I was denied a loan modification for the same reason, “oh but by the way if you have $10,000 to $11,000, there is a Federal (something)… you may qualified for…” I explained that if I had that kind of cash, I would not need their assistance…. She then told me that there is another department in this same bank but will not talk to me until I am unable to pay the my mortgage…. I asked her “do mean to tell me I have to stop paying in order to get assistance from this bank…? She affirmed. Where is our bailout?
Carmen,
As someone who has helped counsel people in your situation, I can tell you that Big Bank really does whatever it feels like. While legislation from this President’s Administration has tried to help home owners, in reality they have only increased the gap with less than 5% of applicants actually getting a permanent modification (Read Article Here). The irony is that not only does this fall disgustingly short of President Obama’s 75% goal but Big Bank does not report WHY they are denying 700,000 families their reductions, THEY’RE JUST DENYING THEM!
This isn’t a social status factor either, wealthy and poor alike are losing their homes. If you have any equity whatsoever, Big Bank wants to flip your house for a profit. It’s ridiculous because so many people trusted, or rather still trust, this banks with their finances. I’m not just talking mortgages, I’m talking checking, savings, and retirement accounts.
Well, this is one more person who, like you Carmen, is tired of being punished for being a responsible consumer and citizen. Big Bank wants to lure you into missing a payment so they can destroy your credit and bring you to your knees down the road.
Do what you have to do to stay afloat, if you have equity in the home consider refinancing. Or keep calling them every single day, asking to speak to someone besides an entry level temp who gets paid to answer the phone. Ask for the supervisor, the manager, anybody with authority. Beat them at their own game, the point is to just keep trying.
Carmen, thank you for your post. I will keep you in my thoughts and prayers. Keep us updated.
-Doc