BUSTED!!! The FNMA rates did NOT change since the original quote

Provident Bank Mortgage “bait and switch” practices documented

FNMA provides the historic daily rates on the web and I obtained the screen shots below from https://www.efanniemae.com/sf/refmaterials/hrny/

Of course the FNMA rates are much lower than the no point rates quoted to consumers because lenders and brokers get paid by FNMA for their “work” — preparing the loan package and underwriting the loan.

The higher the rate, the higher the payments from FNMA to the lender.

And that’s why many loan agents often “low quote” and later claim that rates went up.  The size of their pay checks is DIRECTLY related to your interest rate. The higher your rate, the more money they make.

In this case, we are documenting that the rates did NOT go up and that apparently Provident Bank Mortgage attempted to defraud my client.

These are the rates we are comparing FUTURE quotes to:

8/20/10: Provident loan officer Sophia Wong quoted 4.5% for a no point 80% cash-out refinance with no impounds.
8/20/10: the FNMA 10 day rate was  3.65952.

Why is the interest  rate now a full 1/4% (0.25%) higher?

On 10/6/10, Provident Mortgage branch manager Jeffrey Hsiao stated that the  4.75% interest rate (1/4% higher)  quoted by loan officer Sophia Wong on 9/28/10 is “definitely very reasonable.”

The evidence indicates that Provident Mortgage engages  in “bait and switch” tactics:

8/20/10: the FNMA 10 day rate was  3.65952% — Sophia Wong quoted 4.5%
9/28/10: the FNMA 10 day rate was 3.69573% — Sophia Wong quoted 4.75%
9/30/10: the FNMA 10 day rate was  3.71789% — Glendora branch manager Anthony quoted 4.375%
10/6/10:  the FNMA 10 day rate was  3.66037% — City of Industry branch manager Jeffrey Hsiao states Sophia’s 4.75% quote was “very generous.”

When branch manager Anthony quoted the 4.375% rate on 9/30/10, the FNMA rate was actually HIGHER than on 8/20, when Sophia quoted 4.5% .

Why did Anthony quote this low rate?

Is it standard practice at Provident Mortgage to quote a low rate at application and when it’s time to lock, they falsely claim that rates went up?

The FNMA rate is now essentially the same as on 8/20/10, but Provident increased the rate by a full 1/4%.


We are awaiting Jeffrey Hsiao’s explanation.

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