[Heartnsoul]

Originally Posted by gmcneill

We have a mortgage with Citizen’s First Wholesale Mortgage (CFWM). That mortgage will be satisfied with the sale of our home next month.

We started the mortgage loan process for our new Villages home this past January. At the time, we asked our loan officer if CFWM would match local lender’s rates, points, and closing costs. He confirmed yes.

Two weeks ago our loan officer contacted us to tell us that rates had dropped. Consequently, we began the formal mortgage loan process. We again asked our loan officer if CFWM would match local lender’s rates, points, and closing costs. He again confirmed yes.

This past week, I advised our loan officer that four local lenders had publicized rates lower than the CFWM rate he quoted to us (3.50% vs 3.75% all with no points) and considerably lower closing costs. He stated that his manager would require us to provide a written “apples-to-apples” closing cost estimate sheet before CFWM would consider the match. That made sense to me (but I was concerned about his use of the word “consider”) so I provided him with the first closing cost estimate sheet that I received.

The next day the loan officer emailed me back the manager’s response: CFWM would lower the loan rate to 3.625%, with no points, and reduce their closing costs by $1100. I replied that it’s a start, but not a match. I told the loan officer to tell the manager that I expected the match as I was told I would receive.

A short time after receiving my email, the loan officer emailed me the manager’s response: CFWM would give me the 3.5% rate but that they would have to charge me an additional .625 points to do so. (have to? Really?) And the closing costs amount would not be reduced.

I was incredulous but not angry. It is just business, right?

I told the loan officer that the manager is risking the loss of hundreds of thousands of dollars in interest revenue alone for about $23/month (the monthly payment difference between 3.625 rate vs 3.5). And by charging me the additional points, the manager was trying to jab me ~$2000 to get the same rate that other lenders would provide for no points.

Note: the total interest revenue for a 30 yr fixed note for my loan amount at 3.5% would be a little over $184K. It is very unlikely that I (or my beneficiaries) would hold the note for the full term; a more likely scenario is that the note would be satisfied in 10 years, thus generating ~$104K in interest revenue.

I reminded the loan officer- who was MOST professional throughout the ordeal- that we were loyal CFWM customers with excellent credit and a proven track record of making timely payments who were willing to give CFWM hundreds of thousands of dollars of business. I asked him to check with his manager once more, before I closed the book on them and moved on.

The manager’s response was that CFWM “cannot do any better for our business than what I have offered you.” (cannot?Really?) I have moved on to a local lender who is experienced with the villages closing process and who quoted a 3.5% rate with no points and $2300 less in closing costs. The lender stated that they are usually able to close 30 calendar days out from the date of application.

Once the dust settles, I intend to write a letter to the president of CFWM to inform him of the professionalism and diligence of our loan officer, and also of one of his managers’ business decision that cost his company in excess of one hundred thousand dollars. In my former life as a senior manager, I welcomed responsible input about the agency’s personnel and business delivery operations. I presume that the CFWM president is of like mind.

GOOD for you for acting professional and sticking to your guns. They have so much money losing you as a customer is just a needle in a haystack to them. Good decision. Congratulations