W.C. Mortgage

Review: WC Mortgage contracted an appraisal company who's report came in too low for the loan application. We were advised to have another appraisal done at our expense. We agreed and the second report came in right at the offered amount. Therefore, we feel that the cost of the first appraisal should be absorbed by the mortgage company. During the original interview Wayne informed us that the closing cost would be included in the mortgage amount, he also assured us that our taxes and insurance would be part of our mortgage payment as we requested. We were not told that they wouldn't be until the middle of signing at the title company.Desired Settlement: Refund of the first appraisal of $585.00. Refile the paperwork to have monthly payments include taxes and insurance as originally requested at their expense.

Business

Response:

First and foremost, the original appraisal was ordered through and appraisal management company as required for compliance with HVCC and AIR lending guidelines. The mortgage broker and its investor have NO option to independently choose the appraiser hired for the appraisal report, and are prohibited from having any communication or contact with the appraiser to prevent influence on the appraiser to perform or provide a specific value. The original appraisal report that was received provided an insufficient value to support the contract purchase price. At the time of receipt of this defficient appraisal, the buyers and their realtor were notified in order to begin negotiations with the seller for a reduced purchase price or the buyers pay the additional $6,500 to support the purchase price. Alternatively, an option for a brand new appraisal was also presented to the buying parties and this option was elected as the seller was unwilling to decrease the purchase price. Per Section 6.3 of the Colorado Contract to Buy and Sell Real Estate that was executed by the buyers and seller on October 3, 2013, the cost of the appraisal was designated as a buyers obligation. If the buyers wanted another party to absorb the cost of any appraisal through this process, it is their responsibility to negotiate that with the seller through the contract. Buyers OPTED for the second appraisal to continue with their purchase of this property and the cost of which is not the responsibility of the mortgage lender or its investor. This fee is a result of the buyers choice to proceed with the purchase of the property by obtaining a second appraisal to support the purchase price.

Second, the purchase in question was for a singlwide manufactured home to be used as a secondary or vacation residence. As such, available financing is scarce and the buyers were presented with the best possible loan approval available. It is at the discretion of the investor, not the broker, to offer impounds for homeowners insurance and property taxes. Law does not require impounds on a secondary residence and the broker has no capability of making a decision for the investor on the loan as to whether impounds are offered. Regardless of whether impounds are offered or not, it is the responsibility of the buyer/owner to pay all insurance and tax obligations on real property they have purchased or own. Broker provided to the buyers on 10/10/13 a full disclosure pacakge form the investor that did not disclose escrows being a part of the trasnaction, which the buyers signed and returned to the investor on that same date. It is the buyers responsibility to review every dicslosure document provided to them and present any questions or concerns to the broker or investor prior to signing and accepting those terms. At no time did the buyer question those disclosures and returned each documentn to the investor with a signature. This should not have been a suprise as it was disclosed in theose documetns weeks before closing that insurance and taxes would NOT be a part of this mortgage.

Buyers made no indication at closing that they were unhappy with any terms of the loan and had no issue signing the closing documents presented to them at the time of closing to complete the terms of their purchase agreement. Broker feels these claims and request for compesnation is unfounded and the cost incurred by the buyer for the second appraisal was at their request to continue and complete the purchase. If the buyers have a problem with the first appraisal and the defficient value assigned by the appraiser, perhaps they should contact the regulatory agency for appraisers with the State of Colorado. A refund of the appraisal fee being sought for will not be paid by this office.

Consumer

Response:

Review: [redacted]

I am rejecting this response because: We were put in a position of having to agree to things as we wanted the property and did not want to lose it.

We feel things were not fully explained to us. We may have signed all documents but took our verbal communications to be one and thesame, we are not lawyer's or mortgage brokers. Had we not signed everything we would not have been able to purchase the property. So is this really a fair

WC Mortgage contracted an appraisal company who's report came in too low for the loan application. We were advised to have another appraisal done at our expense. We agreed and the second report came in right at the offered amount. Therefore, we feel that the cost of the first appraisal should be absorbed by the mortgage company. During the original interview Wayne informed us that the closing cost would be included in the mortgage amount, he also assured us that our taxes and insurance would be part of our mortgage payment as we requested. We were not told that they wouldn't be until the middle of signing at the title company.