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  • Mad because fees exist

    So, banks have fees.


    The fees associated with a home loan are: 1) appraisal 2) title search 3) flood certification ad 4) recording costs with the county.


    I work for a small bank. We don't have any of these services internal. We pay for them. We don't have the clout to get massive deals. We are careful. We don't skip title searches. So, to do a home loan, we incur costs. And those costs are passed through to the customer exactly as they are charged to us.


    The big driver of how much the total fees are is the appraisal. But even with NO appraisal, there is always a minimum $150 for the title search, recording costs and flood certification.


    SC is mad from the start because he just refinanced his 1st mortgage (with someone else) and we do not accept outside appraisals. I take his case up to management, and get approval for an exception to do an AVM instead of an appraisal. An AVM is basically a computer valuation. It's more detailed (but not much) than looking up the value of your house online. As one might expect, we can only use an AVM when we have a decent amount of wiggle room in the valuation, because we don't consider them highly accurate. In SCs case, I get approval to use the AVM despite it giving me a value that puts him right at 100% of the loan-to-value of his house.

    An AVM only costs $30. So total fees $180. Great, right?


    Of course not. SC rants and raves at me about these fees for a good 20-30 minutes.

    I make some alternate financing suggestions and offer to cancel the application.

    Amazingly enough, the SC decides to proceed, despite the outrageous closing cost of $180.

    I get the title search and flood certification done. I gather his paperwork. Since I didn't have to do an appraisal, I have everything ready to close in a bit less than a week.

    I call to set up a closing appointment.

    At which point SC rants and raves at me for another 20-30 minutes about us killing him with fees.


    He cancels the application.


    Now that does mean the bank is out the fees (except for the recording costs, since that hasn't been completed yet) as we don't charge the fees unless you get the loan. But you know what? Not concerned about losing you.

  • #2
    I understand being upset at fees, nobody likes them.

    But, consider that not once, NOT ONCE in human history has anyone gotten out of fees by being a belligerent dill hole.....
    - They say nothing good happens at 2AM, they're right, I happen at 2AM.

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    • #3
      Fees

      If the fees are killing him, what would the mortgage payments do to him?

      I think you would have nothing but pain from him every month.

      Good Bye.

      Comment


      • #4
        Quoth bankworking View Post
        So, banks have fees.
        What? Fees? Never heard of such a thing! You're clearly making this up in order to rip the customers off! It's completely unreasonable for the bank to expect a customer to pay for anything, ever!

        Replace anger management with stupidity management.

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        • #5
          I think you need to talk to your manager about making another one-time exception for this chump, and send him the bill for the service fees you incurred on his behalf.
          This was one of those times where my mouth says "have a nice day" but my brain says "go step on a Lego". - RegisterAce
          I can't make something magically appear to fulfill all your hopes and dreams. Believe me, if I could I'd be the first person I'd help. - Trixie

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          • #6
            When I bought my house, I just assumed there would be a bunch of fees. Why should everyone work for free? I bet complaining guy doesn’t work for free.

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            • #7
              Quoth Shyla View Post
              When I bought my house, I just assumed there would be a bunch of fees. Why should everyone work for free? I bet complaining guy doesn’t work for free.
              THIS ^^^^^^^

              I knew up mostly front what my closing fees were going to be. As I worked in the mortgage loan sector about 25 years ago I knew fees, even for a refinance though not as large an amount as a originating loan, were a REAL thing.

              As soon as I did the loan app with my loan officer she detailed (90% accurate because of variables in time and cost and availability of discounts/waivers on fees) what my closing fees and how much each would be along with all of my regular monthly mortgage payment fees (P&I, PMI, property tax escrow, home owners insurance escrow).

              This guy was complaining about $180. I WISH I could have gotten away with just that amount for my closing costs.
              I'm lost without a paddle and headed up SH*T creek.
              -- Life Sucks Then You Die.


              "I'll believe corp. are people when Texas executes one."

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              • #8
                I just paid 30 dollars, plus tax, to put my mail on hold for 3 weeks.

                I bet that guy's head would explode contemplating it.

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                • #9
                  Dude's losing his mind about $180?! Lasts time I bought property IIRC the fees were about $2400 . . .

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                  • #10
                    Oh there are banks that don't charge closing costs on home equity loans. I hear about them all the time. Of course the big banks also tend to have things like:

                    1) annual fees for home equity lines of credit
                    2) early payoff penalties for second mortgages
                    3) higher rates unless you meet certain criteria, like a minimum $150,000 loan amount
                    4) recording fees charged when you pay OFF the loan
                    5) fees to have a payoff statement faxed to you (you can get it mailed at no cost, generally, but of course that means daily interest is still being tacked on...)
                    6) fees to get history/amortization or any other information about your own loan
                    7) selling your loan to someone else (and you better make certain to pay the right lender)

                    They always pay for the loan somehow, and generally with more than just the interest charge. We have fees, but they are stated upfront, paid, and then you are done. No surprises later.
                    Last edited by bankworking; 05-22-2018, 01:18 AM. Reason: spelling errors

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                    • #11
                      Quoth morgana View Post
                      Dude's losing his mind about $180?! Lasts time I bought property IIRC the fees were about $2400 . . .
                      No kidding. I would have killed committed a felony for closing costs that low.
                      The last time Mrs. TGK & I refi'ed the closing costs were $750. $300 of which was for the appraisal. We got that back in property tax savings when we appealed our assessment that fall.
                      Last edited by taxguykarl; 05-22-2018, 05:44 PM.
                      I'm trying to see things from your point of view, but I can't get my head that far up my keister!

                      Who is John Galt?
                      -Ayn Rand, Atlas Shrugged

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                      • #12
                        That dude is a grade-A idiot. Those searches and services are so freaking important. I used to work for a real estate data company, and title issues are not something you EVER want to risk. They can get so messy, and title fraud is rampant.

                        Ugh. At least you don't have to deal with his as a customer anymore!
                        "Eventually, everything that you have said becomes everything you will ever say." Eireann

                        My pony dolls: http://equestriarags.tumblr.com

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                        • #13
                          Quoth earl colby pottinger View Post
                          If the fees are killing him, what would the mortgage payments do to him?
                          Good point, earl. I the OP's bank may well have just avoided another Betty.
                          Quoth JoitheArtist View Post
                          title issues are not something you EVER want to risk. They can get so messy, and title fraud is rampant.
                          If the SC doesn't want to pay the right seller, that's his business OTOH, foreclosure (and in his case it sounds more like when? than if) would be complicated.
                          I'm trying to see things from your point of view, but I can't get my head that far up my keister!

                          Who is John Galt?
                          -Ayn Rand, Atlas Shrugged

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