I have this deal that was supposed to close on the 16th of last month. Since the morning of the 16th I've been told by the mortgage broker that it's not going to close because countrywide is taking their time with the whole process. Well today was supposed to be our closing day (for the 3rd time). Talked to the broker yesterday morning and he said we are all set to go for tomorrow (today) but he can't get countrywide to tell him by what time they'll have the package sent. All day today I'm on the phone with the title company trying to get a preliminary HUD, but the lender still hasn't sent anything. We show up anyway to the closing, thinking that it will show up any minute now. Once the broker gets there he's on the phone the whole time trying to get someone from countrywide on the phone. They won't answer or return his calls. This is getting to be ridiculous. It's one thing if someone called and said.. this is the problem and this is when it will be ready... but these people just avoid you completely and won't give any answers. I'm about to lose this deal because somebody is incompetent.

This is the first deal I've done that's had problems. Is this something that happens very often?? I sure hope not.

The broker tells us that the loan has been through underwriting and was approved, and that it's in the closing department and just needs to be sent to the title company. How hard is it to send an email?

Get used to it. Complete turmoil in the credit markets right now.

Unless your loan is a vanilla, under 80% LTV conforming or FHA/VA it's not a done deal until it's funded. Unfortunately things will likely get worse before they get better.

"We show up anyway to the closing, thinking that it will show up any minute now."
-That seemed pretty ignorant. You know no one can get a hold of the lender, and the package is not there, but hey maybe the "Document Fairy" will show up.

I would say bloomberg.com might be a good place to start as I have noticed several of my fellow agents have no idea even those A grade perfect borrowers are going to be affected by this credit crisis.

I wouldn't put all the blame on CWBC, i would also include the LO. there is no way that a loan should take that long unless there were major issues and you should have been aware. Also, underwriting time for 99% of loans are 24-72 hours. Its sounds like you were being strung along because the lo should have you at a closing that wasn't going to happen. And if it took that long them someone should have been speaking with management at countrywide. I use them and they aren't that horrible, but you can expect that out of Chase.

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I heard today that CW is not funding anything that is not fannie mae/freddie mac, or trying not to. Two brokers on another forum had the same exact problem you went through Shaun. CW was giving them the run around about closing while their retail department was trying to snake the deal from them.

I lost that buyer b/c of them. He finally got tired of it.

Shaun

Shame on you to take the buyer to the closing table when you weren't sure if the package would arrive. You lost the buyer in part because you failed to set their expectations. I am not saying that the broker and the lender don't have some responsibility but you as their agent could have done a ton more. When the broker said they were approved and out of underwriting did you get a commmitment letter? Perception is reality. In my opinion I would have taken the buyer to starbucks or something and explain what is going on in the market and give them a dose of reality. BTW how did the buyer walk without being financially responsible. Was there a financing contingency, if so and there was an approval doesn't the seller have the ability to keep the earnest money?

The buyer did get to walk away, and the seller did keep the earnest money.

Ouch... I would be talking with Countrywide and a real estate attorney.

If there was a problem with financing, shouldn't the borrower get his earnest money back? Maybe I'm missing something here, but I don't see how the seller should get to keep the money.

Direct lenders guys. With very few exceptions, I always urge my buyers to use direct lenders and not go through brokers. Too many hands in the pot and too many layers of scrutiny, and right now especially the borrower is all but assured a better rate going direct.

I do think all this direct banks trying to snake the loan from the broker is wrong though. If the bank has issued a commitment to fund then they need to fulfill that commitment. We just had a situation where a borrower who had been commited to by a lender through a broker backed out and did not fund, only to contact the borrower directly and ask them to re-apply directly through them...

Just another example of an un-informed agent doing a disservice to his buyer. Do you realize what it takes to be an LO with Countrywide? Not like a branch, but telephone LO? If you guessed a pulse you would be right. Idiots like that who no little about our industry are the ones who primarily are responsible for the "bad" loans out there.

Never mind, you're right. Send your buyer to a corporation who hires operators to do loans and not to one of those people that are paid strictly for performance and who want to build a clientèle. You know, those brokers who intend on making a career in this industry. Yes, those brokers don't have your clients closing in mind, they don't need it to close because of our BIG FAT SALARY!

Right on Adam! Do you know most direct lenders, banks I should say, are exempt from the rules we as brokers have to play by? As mentioned, this means that anyone with a pulse can work for a bank. Anyone at a bank doesn't have to disclose any comission they make on the back end.
Not to even mention that banks can't do half of what we can do when it comes to loan programs.
Imagine all the money your clients could have saved by using a broker. I guess it doesn't really matter though when you are the one who charges them 6% to show them the pretty counter tops and snazzy landscaping.

Oh yeah agents please send all of your buyers to direct lenders. Everyone knows that retail is always cheaper than wholesale.