Kwik Mortgage Corporation

As a lender, our goal is to provide satisfaction to every customerThe borrower’s agreement was for us to provide a loan based upon a certain appraised value that was not met per the appraisalAs he stated in his complaint, we did provide several advantageous options that he did not accept We cannot force another company to issue a refund because an appraisal did not come in at what a borrower projected it to beThe borrower is responsible to pay the cost of the appraisal as that is a risk every borrower takesThe borrower even signed a disclosure that explained the appraisal was non-refundable regardless of the value(please see attached) [redacted] (the appraisal company) is responsible to either issue a refund or notWe do not hire an appraiser; we simply provide financing based upon the valuePer federal regulation, all lenders must order appraisals through a separate appraisal company and have no contact with the actual appraiser We cannot make an appraisal company, title company or a real estate agent refund money for services they charged forIt is not in our ability to force a separate company to refund a service they provided

As a lender, our goal is to provide satisfaction to every customer. The borrower’s agreement was for us to provide a loan based upon a certain appraised value that was not met per the...

appraisal. As he stated in his complaint, we did provide several advantageous options that he did not accept. 
We cannot force another company to issue a refund because an appraisal did not come in at what a borrower projected it to be. The borrower is responsible to pay the cost of the appraisal as that is a risk every borrower takes. The borrower even signed a disclosure that explained the appraisal was non-refundable regardless of the value. (please see attached) [redacted] (the appraisal company) is responsible to either issue a refund or not. We do not hire an appraiser; we simply provide financing based upon the value. Per federal regulation, all lenders must order appraisals through a separate appraisal company and have no contact with the actual appraiser.
 
We cannot make an appraisal company, title company or a real estate agent refund money for services they charged for. It is not in our ability to force a separate company to refund a service they provided.

Review: I agreed to start a mortgage refinance process with homelend, via rep Anthony H, and was very clear that I only wanted to start the process if I could obtain a no closing cost loan at better than my current rate, with no PMI. Anthony assured me on several occasions that there would be no PMI. I had to pay for an appraisal, which was just a formality, and they would pay me back at closing. I made a specific phone call to Anthony after reviewing the application docs, and he again assured me I didn't need to worry about PMI. The file was then transferred to Sean P, and after the appraisal came back, it was determined that PMI was indeed necessary due to the appraised value. Sean was very helpful and came up with several alternative options including paying PMI in advance, or financing it over the loan life, but none of these were financially advantageous to me over the long term and they did not meet the original agreement which I had been sold on. I stopped the loan process, and requested a refund of $410 for the appraisal cost. Sean refused to provide this refund. The only reason I paid for this appraisal was because a Homelend agent, Anthony H was insistent that it would appraise well above the required amount and PMI would not be added.Desired Settlement: Refund of $410

Business

Response:

As a lender, our goal is to provide satisfaction to every customer. The borrower’s agreement was for us to provide a loan based upon a certain appraised value that was not met per the appraisal. As he stated in his complaint, we did provide several advantageous options that he did not accept. We cannot force another company to issue a refund because an appraisal did not come in at what a borrower projected it to be. The borrower is responsible to pay the cost of the appraisal as that is a risk every borrower takes. The borrower even signed a disclosure that explained the appraisal was non-refundable regardless of the value. (please see attached) [redacted] (the appraisal company) is responsible to either issue a refund or not. We do not hire an appraiser; we simply provide financing based upon the value. Per federal regulation, all lenders must order appraisals through a separate appraisal company and have no contact with the actual appraiser. We cannot make an appraisal company, title company or a real estate agent refund money for services they charged for. It is not in our ability to force a separate company to refund a service they provided.

Consumer

Response:

Review: [redacted]

I am rejecting this response because:

The complaint is not to do with the terms of the loan, it is concerning the verbal guarantee provided by Anthony H that the appraisal was only a formality and it would come in well above the required value. This was stated several times and confirmed via a phone call specifically about this issue prior to my signing the appraisal form. The business practice here has been to promise things verbally that the company has no intentions of honouring.

Regards,