By:
DisappointedRefinanc
Michigan
Reviewed On:
January 29, 2011
Loan Request:
December 14, 2010
Disappointed Refinance
Rate of 4.25 for 15 year fixed seemed competitive for a mortgage broker who deals on the wholesale side of the market. However, I was able to get the SAME rate from my local bank with lower closing costs. Further, their appraissing agent REALLY low-balled our property's value using ridiculous low-priced comparables of about HALF our home's square footage. When called on this, both Capwest Mortgage and the Appraissor refused to budge, even though it was obvious what they both were doing. By low-balling our home's value, Capwest would have charged us PMI (mortgage insurance, i.e., several extra hundred dollars per month for several years), and the appraissor then gets to redo his appraissal (for an additional $450.00) in a few years in attempts to get the PMI removed. Sound like a racket to you? Did to us. My advice: check around your own community first. Get educated before you start things rolling with a mortgage broker (who is only going to immediatley sell your mortgage to an unknown entity with potentially poor customer service).
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CapWest Mortgage Corporation Response
First, there is need to clarify, that CapWest Mortgage Corporation is a lender; not a broker. Secondly, CapWest Mortgage Corporation is not an appraisal company and adheres to HVCC guidelines. In response to the claim of the customer’s “low ball” value; the subject property is 1.5 story home with the majority of the square footage below grade and also located in a declining market, as noted on the report. Comparables were limited in the area; however, the customer provided additional comps that were aged and one even 42 miles away. CapWest exhausted every option for the customer; including our Chief Credit Officer to review the report above and beyond Sr. Underwriting and also offered a VA loan product, but the customer refused to use eligibility. Mortgage Insurance would not apply and the loan officer offered to cover the Origination Fee as well. CapWest successfully achieved the 1 Billion Dollar mark with over 4,000 closings in 2010.