10/19/10 Jeff Hsiao voice mail, request for reimbursement to Hsiao and his loan cancellation

On 10/19/10, Provident branch manager Jeffrey Hsiao left a voice mail for my client, requesting a call to resolve the issues:


Hi [redacted] this is Jeff Hsiao from Provident Bank.  You emailed me before regarding the early finances you had processed with Sophia.  I haven’t heard any correspondence from you.  I know that your advocate, or credit counselor, Christine has been calling our corporate office and we’re still not getting any return calls from any of you. So when you (unintelligible) give us a call.  My area code is (626) 625-6922.  I’d like to see what we can do to come to an amicable resolution on this.  You have my number.  Thank you

On 10/20/10, the borrower sent this email to Mr. Hsiao:

From: “[borrower]” <[redacted]>
To: “Hsiao, Jeffrey”

Dear Mr. Hsiao,

I received your voice mail and as you mentioned, Christine has been in contact with Steve Atwood at Provident corporate, as per your request.

Our loan is now locked at 4.375%, with no points and no impounds. The appraiser inspected our home yesterday and if all goes well, we should close within a couple of weeks.

You offered no explanation for the Provident interest rate increase to 4.75% and you refused to lock our loan at market rate as we requested on 10/7/10.

Please refund the $400 appraisal fee and the $500 we paid to Christine who got us the interest rate we deserved.



Mr. Hsiao replied promptly, but he IGNORED the request for reimbursement and instead he announced that he was canceling the loan file due to an incomplete application:

From: Hsiao, Jeffrey [mailto:JHsiao@myprovident.com]
Sent: Wednesday, October 20, 2010 2:40 PM
To: Hsiao, Jeffrey; [borrower]
Subject: RE: Loan Application with Provident Bank


I have attempted 3 times to contact you via Phone to discuss this in further detail and to help find a solution so we can proceed with your loan application. I have yet to hear from you since the last email.

At this point, we are going to cancel your loan file due to an incomplete application. See the attached Notice of Incomplete Application for your reference.

When you are ready to proceed, I would be happy to discuss new options that would be suitable for you and your husband.

Thank you for your consideration with Provident and wish you the best of luck with your refinance process.

The list of items needed attached to Mr. Hsiao’s email: 10-20-10-Provident-list-items-needed-pub

Mr. Hsiao doesn’t seem to be able to stick to the truth:

  • Mr. Hsiao’s 10/19/10 VM was the only message the borrower received from him and she responded the following day (email posted above).  How did he make his attempts to contact her by phone?  Let it ring once and hang up?
  • Mr. Hsiao claims not to have “heard” from her. Technically, that’s correct. She did not call him, she wrote to him.
  • Mr. Hsiao claims that the application is incomplete because bank statements, pay stubs and appraisal are required. That goes to show how they operate – none of these items were previously requested and it sure is ODD that all of a sudden ANOTHER appraisal is required.

The borrowers had provided all requested information and documents and they had paid for the appraisal and received a copy of it. At Provident Bank, they make conditions up as they go along.

The only legitimate request on his list is the “LOAN TERMS AGREEMENT TO PROCEED WITH FILE AND RATE LOCK”.

The borrowers did not fall for Mr. Hsiao’s bait and switch tactics (demanding a 4.75% interest rate when the loan was ready to lock) and they refinanced with another lender and closed with the rate they deserved: 4.375% with no points.

They saved almost $29,000 in interest over the life of a $360,000 mortgage.

The actual savings are even higher because they received a $368,000 loan due to the appraised value being higher than originally anticipated.

I emailed the link to this page to Mr. Hsiao for comments.

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