National Mortgage Network bait and switch practice

Dear Complaints.com,

I'm writing to complain about the terrible service I got from National Mortgage Network and what appears to be a bait and switch operation.

On September 13, 2005 I applied for a loan on Lendingtree.com to refinance my rental property in Seattle, Washington. I received numerous offers, including one from National Mortgage Network. National Mortgage network offered me a 30-year loan at 5.375% with a fee of one point. I immediately followed up on the lending tree offer by calling National Mortgage Network loan officer Jeff Fackrell to see if they were serious about this rate for an investment property. I asked Jeff to verify that National Mortgage Network was prepared to offer me the 5.375% 30-year loan on my rental property. He said he’d check and get back with me. Later the same day, Jeff Fackrell called me back to assure me that the 5.375% percent rate would apply to my rental property. I accepted his statement in good faith and immediately began the refinance process. Within a few days, I’d submitted all the paperwork National Mortgage Network requested. I checked with Jeff over the next couple of weeks to make sure the refinance was progressing on schedule. He assured me it was. In late September, Jeff said all that was needed to finalize the loan was an appraisal of my house, which I immediately ordered and paid for. Jeff then asked for the contact number of my property manager so she could arrange to have the appraiser let on the property. I supplied that information to Jeff.

I called Jeff at the end of September to make sure my rate was locked in as it looked like interest rates were going to rise. He assured me the rate was secure and said in fact, “rates had dipped a bit.” He said there was nothing to worry about. I sent Jeff another email in early October enquiring about the loan. I heard nothing until October 13 (30 days since my original application). This time I received an email from Cheryl Thomas a senior loan processor who said she was working with Jeff. She wanted me to answer three questions and said she’d then make sure the rate was secure. Among the questions was would I provide a copy of the rental agreement with my tenants in the house I was refinancing. I answered all of Cheryl’s questions and provided the rental agreement the same day.

I did not hear from Cheryl again despite emailing her several times. Finally on October 19 (six days later) Jeff Fackrell emailed me and told me he could not offer me the agreed upon rate of 5.373% because investment property guidelines had recently increased. He was now prepared to offer me a rate of 5.75% paying not one but two points. I contacted Jeff and told him I didn’t believe rates had jumped as much as he claimed they had. The next email I received from Jeff didn’t mention the “change in guidelines.” This time he said he’d made a mistake and never graded the loan as a “non-owner occupied” dwelling and that “this is the reason for the discrepancy.” For Jeff Fackrell, more than 30 days into the process, to claim he’d never graded my home as a rental property and therefore he could not live up to his side of the agreement seems a blatant falsehood. The original online lendingtree application asks if the house is a rental property and we marked yes. Also, my husband and I are temporarily living in South Africa on a work contract.. Jeff knew I was living in South Africa and could not possibly be occupying my home in Seattle. Jeff knew I had a tenants and a property manager for my home in Seattle. The senior loan officer working with Jeff requested a copy of the agreement I had with the tenants.

My only explanation for this outcome to the process is that National Mortgage Network is engaged in a bait-and-switch operation which I believe is illegal. I spent time and money on this refinance. I provided all the documentation National Mortgage Network requested as quickly as possible. Now, I have lost out on the chance to refinance with a reputable company at a time when rates were lower than they are now. I have paid almost $500 for an appraisal and wasted time and money on international phone calls. I have attempted to work out a fair solution to this process with managers at National Mortgage Network. Not only have they not made an effort to help me, they have also ignored by phone calls and emails.

I am extremely disappointed in this company and would like to follow up through any possible regulatory and legal means possible.

I have documentation to back up much of what I’ve asserted in this letter.

Sincerely,

Jennifer Schmidt

Email User

Comment On This

I have to question the Loan officer! The borrower didnt qualify for the loan with their income? Then you said you moved the loan to a STATED product? If that is true, you are a pathetic loan officer. You should have qualified them first before you ever locked in a rate. Then, because they didnt qualify, you went STATED? That my friend is illegal! Its FRAUD! You are stating income whan you already know what they make. You should be charged with FRAUD! I hope you are not in the business any more!

Comment On This

NO WAY -

My husband and I have done 2 loans with this company and we have been very happy with the service we received from them. I have recommended them to a friend and she also was happy with the experience.

It's sad because I Googled their name to call them regarding purchasing a new home and this article came-up 1st.

It's too bad that only 1 customer complaint out of thousands past customers can be found and it ranks 1st on a search engine.

What a world of whiners and complainers we've become.

Adrienne Frey

Comment On This

I side with the lender. I've been doing loans for over 17 years and borrowers seem to always hear what they want to hear. 5.75% for a stated, n/o/o loan is great. When I started in the business fixed rate ,owner occ, loans started at 10.5%. Borrowers these days seem to be spoiled with low single digit rates. Jut wait until reality sets in and rates again hit double digits,

Comment On This

First of all, your appraisal was $350. Secondly, it's very doubtful you have ever been in contact with other customers since you are the only complaint posted regarding myself or National Mortgage Network. Next, you did have other debt that was showing on your credit report at the time. Your facts seem to be a little fuzzy. Contrary to what you believe, income was a factor for you in qualifying for the loan due to other debts showing on your credit report. It has nothing to do with your total income compared to the amount you were looking to borrow. It does, however, have to do with your debt to income ratio, which takes into account the other debts on your credit report. This is the reason the loan needed stated income giving you a higher rate. The original offer was for 5.375% for a 30 year fixed loan with full income documentation giving you a principle and interest payment of $727.96. Your income did not support the loan so we had to go with stated income. The new deal then changed to 5.75% giving you a payment of $758.64. That's a difference in payment of $30.68. I should be ashamed? You are obviously unaware of the many aspects that go into the underwriting of a file. Apparently, your intention here is to slander a good company and a good, honest loan officer, spread negativity and point fingers. In fact, the problem here is due to your lack of knowledge regarding the loan process and your inherent need to spread fictitious unsubstantiated claims. In addition, the loan process is based on a relationship and obviously this one went sour along the way, so instead of harboring resentment over something that happened over 2 years ago, we should simply move on and let this one go. My name and my company have been slandered enough now. I have a family I love and support, and these accusations have begun to affect my business, in turn, hurting my family. Is this really worth that?

Comment On This

Wow, Jeff. More than 2 years after we tried so hard to get this worked out and now you finally are interested in getting this issue resolved.

First I stand by my original complaint which you call "slander". Secondly I'm amazed that you now claim that I misrepresented my income and couldn't afford the payments. This brings back awful memories of those negotiations in 2005 with National Mortgage Network in which you would come up with wildly ficticious reasons why one thing or another wasn't working out with the original loan and why that great rate you'd promised you'd get for me, never materialized. My income was more than $100,000 in 2005 and this is the only property I own. In addition at the time I had no other debt. It seems like you could make that work on a $130,000 re-fi.

In the end you strung me along, had me pay $500 for an appraisal and then failed to deliver the loan you'd promised. And, since I posted this complaint, I have heard for several other national mortgage network "customers" who had exactly the same thing happen to them as happened to me. You should be ashamed.

Jennifer Schmidt

Comment On This

This customer simply misrepresented her income and ability to repay the loan. The company was clear from the very beginning and the entire process that the loan in question was an investment property; the fact that it was an investment property was not an issue.

The customer stated from the beginning that she and her husband could prove their income with 1040 Tax returns and W-2s. After she would NOT provide adequate documentation to establish sufficient income to qualify for the loan, she was given the option of a stated income loan. Stated income loans have higher interest rates and fees due their high risk nature.

It should be noted that the customer was in South Africa with an 11 hour time difference. This made it very difficult to contact her and do business as the company is located in the Pacific Standard Time Zone. The customer was fully aware that there was no international dialing available to NMN employees.

It is unfortunate that such a libelous accusation can be made against a highly reputable company and posted on a site like this - without any investigation, contact or regard to the company and employees. This company ranks as one of the highest LendingTree lenders in customer satisfaction amongst hundreds of lenders.