As a Correspondent Lender, we work with just about ever bank and some lenders you may not have heard from. Every so often, I’ll have a client request a specific bank. The conversation may go something along the lines of:
Client: Can you please lock my loan at Wells Fargo (or Washington Mutual, Countrywide, etc.)?
Me: We work with many banks. However, I usually select by who is offering the best rate or best product for your scenario.
Usually the client is fine with getting the best rate or product. Sometimes, they may request to not be locked with a certain lender due to a bad previous experience. I’ll advise the client that I won’t lock them at that specific bank; however, I cannot guarantee they won’t wind up at that bank since mortgages are often transfered. The request to be with a specific bank has really dwindled lately. I’m assuming clients are happy to have qualified for a mortgage with today’s tightened guidelines and to have secured a low rate.
I have been wondering…does a potential borrower care if they found out their mortgage was locked in (brokered) with a specific lender?
Would it matter to you if I lock your mortgage with Countrywide, WaMU, IndyMac, Wells Fargo, Chase, Flagstar, Wachovia or DiTech? (Note: these banks are mentioned in no specific order and does not represent a complete list of lenders we work with). How about a bank you’ve never heard of before? Or if the bank was a "subprime lender" yet they offered a lower rate than a prime lender?
Voila, we have our first poll at Mortgage Porter on the right side of this page. Please vote!
Update: I will keep this poll available until March 8, 2008.
Pole Results:
- Yes. There are banks I don’t want to support. (8)
- No. I don’t care. I just want the lowest rate. (8)
- It doesn’t matter (4)
I don’t know that I’d go so far as saying we *wouldn’t* take a mortgage from a particular bank…. We’ve had very bad experiences with Chase, however, and some lesser frustration with Bank of America. All else being equal, I think we’d opt for one that wasn’t one of those.
Mike B, it’s funny I think more are now doing just that, saying “not this bank” where before they would request a specific bank. 🙂
I think a brand name gives some people a little more confidence, if it’s someone they’ve heard of. Unless the brand name is Countrywide (and a few others), then maybe not so much.
I’ve been a big and loyal fan of my credit union. I’ve had 3 new mortgages and a few refi transactions with them over the years and I’ve never been disappointed. Maybe it’s unusual, but I’d prefer to stay away from EVERY bank and select my mortgage company on the basis of past service rather than rate. Even though my mortgage is serviced on the East Coast, I can still call a local member service rep (a live person) to get my problem solved and/or question answered. I’ll forgo a best price for best after closing service any day.
Anne, I wish everyone selected by service instead of rate when it comes to shopping. There is a balance, I believe. I would assume the best case scenario is working with someone who will provide you with outstanding service (with an excellent range of products) and a competitive rate.
Sandy, the poll question is one I’m asking clients now when I’m taking their loan application…their answer is often similiar to yours…. yes we’d like the lowest rate…but what happens if????
Rhonda – I couldn’t agree more. Now, if we can just get you and your high standards for quality originations and commitment to annual mortgage reviews aligned with my credit union’s excellent “member service reps” we’d be all set! Let’s work on that together, ok? 🙂