Provident Bank mortgage incompetence documented

Yesterday I  spoke with mortgage manager Jeff Hsiao at the Provident Bank branch in City of Industry  after I realized that my clients were about to receive a 3/8% higher rate than they qualify for (Some of my rate research earlier this week).

Mr. Hsiau stated that loan agent Sophia Wong was very “generous” to offer my clients a 4.75% rate for the 80% cash-out loan on their residence .  All FICO scores were over 720.  Mr. Hsiao claimed that my clients have problems, but he also admitted that they were getting a FNMA loan.   He refused to disclose any problem to me and he ignored my client’s phone calls and voice messages.

I sent the fax with my summary of events and the unbelievable Provident incompetence last night (posted below)  and this morning I called Jeff Hsiao around 10 am.  He acknowledged receiving the fax and he refused to discuss any problems with the loan.  I asked whether my client should call him again and he stated that he would only talk to my clients if they came to the branch in person next week.

And then Jeff Hsiao hung up on me.

That’s when I realized that it was time to feature Provident Bank at Liars & Cheats EXPOSED, we set up this blog and of course I’ll fax the URL to Mr. Hsiao for comments and potential errors.

Of course I will update here with the Provident response, I’ll contact their headquarters and I wonder if their mortgage people are licensed anywhere.  This weekend I’ll go over their application, the loan disclosures (GFE, TIL), appraisal, etc.

Stay tuned …

Here is my fax with the summary of events and Provident Bank incompetence:

Via fax to 626-270-3861 — 3 pages including cover

ATTN: Jeff Hsiao
Provident Bank

Re:      [clients] – Provident Bank incompetence

Hi Jeff,

As per your request, [client] tried to call you shortly after we spoke this afternoon. Unfortunately, you didn’t mention that you’d be leaving.  So she left two messages on your cell phone voicemail, requesting that you discuss their loan with me.  I’m also attaching their power of attorney.

In summary, Provident first ran my clients’ credit on 8/20/10.   [Husband’s] FICO scores of 729, 735 and 759 were provided by Kroll Factual Data.  They were told that they could get the lowest rate if [husband’s] middle FICO score (Trans Union 735) was increased to 740+ and that [wife] would not be on the loan.

The Kroll RMCR listed the 4th negative score factor for the Trans Union score:

Too many inquiries (1)

Sophia recommended that they pay down the AmEx credit card with the $25,968 balance to $24,700.  This account is reported with a $31,000 credit limit.

She SHOULD have pointed out that the Chase credit card with the $18,820 balance does NOT report the credit limit.  Since the FICO scoring formula utilizes the reported high balance of $19,628, the $21,000 credit LIMIT should have been added to the credit reports.

Instead of wasting the borrowers’ funds on the large AmEx account, they should have PAID OFF the $702 balance on another AmEx account and possibly the Sears $2,232 account.

Quite likely, the TU score would have increased to 740+ if the credit was run again within 30 days, before the 8/20/10 Provident inquiry lowered the score.

On 9/8/10 my clients had already provided the AmEx letter with the new balance and Sophia advised that she had transferred to the City of Industry branch.

Nobody asked my clients whether they agree to transfer to this branch.

Incredibly, Sophia waited until 9/24/10 to run the credit again.  Strangely, she now used Informative Research instead of Kroll and she also obtained [wife’s] report again.  [Husband’s] Trans Union FICO score went DOWN to 730 (from 735) instead of up to 740.

Just about everybody in the mortgage industry knows that credit inquiries are likely to lower FICO scores.  FICO scores IGNORE mortgage inquiries for only 30 days.

Not only did Sophia give horrible advice, but she waited over 30 days to run the credit again.

Last Monday [wife] contacted me and I have since spent every day almost all day trying to figure out what is going on and why the interest rate is all of a sudden so much higher.

I have contacted other lenders and as you know, today I finally called Provident and Anthony quoted a 4.375% rate with no points for a middle score below 740 for an 80% cash out refi.

Incidentally, Anthony advised that the cost for not setting up an impound account is 1/8th of a point.  My clients were never told about this fee.

You stated on the telephone today that Sophia was very generous to offer my clients a 4.75% rate because they have problems and need a special loan.

Strangely, nobody at Provident mentioned ANY problem to my clients.

Why do my clients deserve a 3/8% higher rate if the middle FICO score is below 740?

Based on my review of the correspondence and credit reports, I only see problems with Provident Bank and not with my clients.

I will be out tomorrow afternoon and will greatly appreciate your call in the morning with your explanation for the high interest rate, the extraordinary incompetence with respect to the efforts to increase the FICO scores, the failure to timely order the new FICO scores and the lack of communication with the borrowers.

[Wife] already left two voicemails for you this afternoon and you did not call her back.  If you still need further authorization to discuss this loan with me, please call her at [employer number].


Christine Baker

c:  [clients]

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