We used Approved Funding for a loan on an apartment at the Edge and are unhappy with the experience. Approved Funding repeatedly issued rate locks and commitments with tight expiration dates, then had the processing drag out on their end beyond these dates. Although we responded promptly to every request, the process took over three months and we had to settle for a rate 0.625% higher than... [more]
We used Approved Funding for a loan on an apartment at the Edge and are unhappy with the experience. Approved Funding repeatedly issued rate locks and commitments with tight expiration dates, then had the processing drag out on their end beyond these dates. Although we responded promptly to every request, the process took over three months and we had to settle for a rate 0.625% higher than originally promised.
Here is the timeline of our experience:
October 8: Received contract from the Edge and given contacts for their preferred lenders, Approved Funding and Met Life.
October 26: Signed contract and received quotes of 4.125% from Approved Funding and 4.25% from Met Life. For the sake of a mere 0.125%, we chose Approved Funding and the painful process began.
October 29: Received application with rate quote at 4.125% and closing date of December 2.
November 5: Submitted application including rate lock at 4.125% and credit card authorization for rate lock fee of $695, to be refunded at closing.
November 12: Told “expect to have the conditional approval next week”.
November 18: Told “expect the commitment today or first thing tomorrow”.
November 29: Closing is adjourned without a new date.
December 7: Received commitment letter with 4.125% rate and expiration of December 31.
December 15: Told not to schedule a closing yet.
December 30: Told “waiting on one item from the Edge which is the fidelity insurance other then that everything else is cleared”.
January 5: Approved Funding office phone number stops working.
January 7: Told that due to the expiration of paperwork associated with the Edge that the rate lock no longer applied and that we have to decide within hours to lock in a 4.75% rate or go with market rates at the closing.
January 10: Received rate lock at 4.75% expiring on January 21.
January 11: Told “we should be a go for clearance any day now”.
January 19: Received new commitment letter with 4.75% rate and expiration of January 27.
January 20: Confirmed closing date of January 27 and told rate lock extended at no extra charge.
January 27, 10am: Seller’s attorney cancels closing due to snow.
January 27, 11am: Approved Funding says extending the loan will cost 0.125% for 10 days.
January 27, 12pm: Seller’s attorney is convinced to proceed with closing.
January 27, 6pm: Finally closed and will never have to deal with Approved Funding salespeople again!
By the way, the $695 is not really refunded at closing, it’s just a pre-payment of the underwriting fee.
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Response by mbrokerNY
almost 15 years ago
Posts: 103
Member since: May 2008
Sounds like you got the run-around, BUT why is it the lenders fault if the seller is not able to close? Who should pay the cost to extend the rate?
Approved funding should have foreseen closing delays and should have locked accordingly, but I dont think they are to blame if the loan didn't close on time(unless the delay in closing was their fault).
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Response by streetsmart
almost 15 years ago
Posts: 883
Member since: Apr 2009
apparently there are two discussions, so I'll say it here: the $695 was refunded to you since you didn't incur an underwriting fee.
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Response by Mikev
almost 15 years ago
Posts: 431
Member since: Jun 2010
I will assume for a minute that if they were the approved lender that they should have all the paperwork from the Edge. I could understand if it was on your end, but it sounds like it was between The Edge and Approved Funding.
Is there something missing that it was on your end that this was delayed? It sounds more as if they delayed it to kill off the lock as mortgage rates were rising.
That being said, it sounds like a really crappy experience.
Last I agree with streetsmart, while they did not officially hand you a check for the $695, they used it as a credit against other fees.
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Response by streetsmart
almost 15 years ago
Posts: 883
Member since: Apr 2009
Jan 7: expiration of paperwork associated with the Edge. What does this mean and now that you're closed, you might want to look into this and make them accountable.
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Response by crazybuyer
almost 15 years ago
Posts: 13
Member since: Sep 2010
We submitted everything asked for promptly. There was nothing that delayed the process on our end.
Regarding the $695, on the good faith estimate, there is only a single item
Underwriting/commitment fee 695
This was paid and was supposed to be refunded
If the goof faith estimate had
Underwriting fee 695
Commitment fee 695
Then it would make sense that the commitment fee is used to pay for the underwriting fee.
But there is only a single 695 fee, not two 695 fees, which seems a little sneaky.
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Response by Equity8
almost 15 years ago
Posts: 5
Member since: Jan 2011
Was the project Approved with Fannie Mae November 29? I don't believe it was. The Edge received updated pers approval status not to long after. With out building approval how could the lender proceed wiht the loan or extend the rate for that matter?
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Response by salvydicopa
almost 15 years ago
Posts: 80
Member since: Apr 2009
Wow, sounds almost exactly like my situation with MetLife. The loan officer assured me that given how diligent and timely I was with submitting all my paperwork, I should have my commitment letter in 2 weeks. That was a month ago. MetLife has broken every promise regarding their deliverables and I'm so sick and tired of hearing their excuses.
I also reached out to Approved Funding as an alternative to MetLife and gave him all the documentation he needed right away to get the ball rolling but I gave up with them when would not return my phone calls and e-mails several days later, if at all.
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Response by crazybuyer
almost 15 years ago
Posts: 13
Member since: Sep 2010
I received further explanation of the change in rate and want to clarify. At the time of our application, the building was Fannie Mae approved and we were given the initial rate. Then the Fannie Mae approval expired which caused our rate lock to be no longer valid. After some time, the building got approved again and we got our new rate lock at the current market rates at the time. The expiration of the Fannie May approval was the responsibility of the building and not the lender.
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Response by crazybuyer
almost 15 years ago
Posts: 13
Member since: Sep 2010
Update, loan was sold to BB&T.
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Response by ApprovedFunding
over 14 years ago
Posts: 1
Member since: May 2011
CrazyBuyer - it definitely sounds like you had a crazy experience. Corporate is well aware of your loan and you know as well as we do - that your scenario was an abberation, and your situation was out of the norm. Its a shame you had the experience, but even worse that you took it to "the street" when we came through and jumped through all the hurdles your loan called for.
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Sounds like you got the run-around, BUT why is it the lenders fault if the seller is not able to close? Who should pay the cost to extend the rate?
Approved funding should have foreseen closing delays and should have locked accordingly, but I dont think they are to blame if the loan didn't close on time(unless the delay in closing was their fault).
apparently there are two discussions, so I'll say it here: the $695 was refunded to you since you didn't incur an underwriting fee.
I will assume for a minute that if they were the approved lender that they should have all the paperwork from the Edge. I could understand if it was on your end, but it sounds like it was between The Edge and Approved Funding.
Is there something missing that it was on your end that this was delayed? It sounds more as if they delayed it to kill off the lock as mortgage rates were rising.
That being said, it sounds like a really crappy experience.
Last I agree with streetsmart, while they did not officially hand you a check for the $695, they used it as a credit against other fees.
Jan 7: expiration of paperwork associated with the Edge. What does this mean and now that you're closed, you might want to look into this and make them accountable.
We submitted everything asked for promptly. There was nothing that delayed the process on our end.
Regarding the $695, on the good faith estimate, there is only a single item
Underwriting/commitment fee 695
This was paid and was supposed to be refunded
If the goof faith estimate had
Underwriting fee 695
Commitment fee 695
Then it would make sense that the commitment fee is used to pay for the underwriting fee.
But there is only a single 695 fee, not two 695 fees, which seems a little sneaky.
Was the project Approved with Fannie Mae November 29? I don't believe it was. The Edge received updated pers approval status not to long after. With out building approval how could the lender proceed wiht the loan or extend the rate for that matter?
Wow, sounds almost exactly like my situation with MetLife. The loan officer assured me that given how diligent and timely I was with submitting all my paperwork, I should have my commitment letter in 2 weeks. That was a month ago. MetLife has broken every promise regarding their deliverables and I'm so sick and tired of hearing their excuses.
I also reached out to Approved Funding as an alternative to MetLife and gave him all the documentation he needed right away to get the ball rolling but I gave up with them when would not return my phone calls and e-mails several days later, if at all.
I received further explanation of the change in rate and want to clarify. At the time of our application, the building was Fannie Mae approved and we were given the initial rate. Then the Fannie Mae approval expired which caused our rate lock to be no longer valid. After some time, the building got approved again and we got our new rate lock at the current market rates at the time. The expiration of the Fannie May approval was the responsibility of the building and not the lender.
Update, loan was sold to BB&T.
CrazyBuyer - it definitely sounds like you had a crazy experience. Corporate is well aware of your loan and you know as well as we do - that your scenario was an abberation, and your situation was out of the norm. Its a shame you had the experience, but even worse that you took it to "the street" when we came through and jumped through all the hurdles your loan called for.