10/6/10: Branch Manager Jeffrey Hsiao email to borrower

10/6/10:  The borrower’s fax to Jeffrey Hsiao, Provident Bank Mortgage, City of Industry branch manager:

Dear Mr. Hsiao,

As you know, we are extremely unhappy with the 4.75% interest rate your loan agent Sophia Wong quoted to us on 9/24/10.  On 8/20/10, we were quoted 4.5%.  Apparently rates actually went down since August, as Provident quoted 4.375% on 9/30/10 to Christine Baker for a $360K 80% cash-out refi with no points and FICO scores over 720.

On 9/30/10, I provided power of attorney to Christine Baker and I advised in several messages left on your cell phone that we authorize Christine to discuss our mortgage loan with you.

You failed to respond to Christine’s 9/30/10 fax and when she called you, you refused to discuss the issues and you hung up on her.

Please answer our questions:

Why are you now offering a 4.75% interest rate to us (was 4.5% on 8/20), but others get a 4.375% rate?

Why is the loan amount $360,000?  We applied for an 80% loan and our home appraised at $460,000.

Why were we not informed that we are charged a 1/8 point fee if we don’t agree to an impound account?

Why did [husband]’s FICO score go DOWN instead of up after we followed Sophia’s advice to increase the FICO score?

Why was our loan application transferred to your branch without our consent?

Why did nobody explain the fees associated with the loan?

Mr. Hsiao, you refused to provide answers to Christine and you demanded that we meet with you in your office.  However, we are busy working, it appears that we have been deceived and we really need WRITTEN answers.

We hope to resolve the issues amicably, but as rates can go up quickly and our FICO scores are likely to drop again on 10/24/10 (30 days after the most recent mortgage inquiry), we need answers now.

Please answer our questions by tomorrow at 5 pm by email to [redacted]

Sincerely,

Jeff Hsiao’s 10/6/10 emailed response:

From: Hsiao, Jeffrey [mailto:JHsiao@myprovident.com]
Sent: Wednesday, October 06, 2010 5:40 PM
To: [borrower]
Subject: Loan Application with Provident Bank

Good Afternoon Mrs. [borrower] ,

It’s unfortunate that you feel the service and offer that Sophia Wong provided to you was not to your satisfaction.  I have thoroughly reviewed the documentation and the loan offering that was provided.  The quote with Interest Rates and Fee’s are definitely very reasonable.  If you choose not to proceed with that offer, you may elect to do so as it is a consumer right.

As to questions that you asked:

1) We are not allowed to speak with parties that are not part of the transaction.  It is a privacy violation for us to provide any of your personal information to other parties unless you are in our office and in our presence while we discuss your financial matters.  All information is extremely sensitive with your personal financial data.   The Power of Attorney cannot be used unless the original is shown to us in the office by you.  Also, the Power of Attorney IS NOT notarized and has no validity.

2) The interest Rate offered is based off of your complete loan package.  When you receive quotes from other lenders, you need to make sure they are fully informed of your loan file, with Loan to Value, Credit Score, Cash Out, etc.  All of those items play a key in determining interest rates and points.  Your interest rate is NOT Locked and was explained to you that it may fluctuate during the process until you have locked in.  I did have a very detailed conversation with another Branch Manager who gave Christine a quote and the information that was provided to obtain the quote was not correct to your specific loan file.  The quote was not given for a Cashout Refinance at 80% LTV with a 720 FICO.  The points adjustments for your file is 1.00% points if you impound and 1.25% points if you waive impounds above the traditional rate with no pricing adjustments.

3) The loan amount applied for was based off of your original application with Sophia.  You applied for a 80% Loan to Value base off of the original estimated value of your house of $450,000.  The appraisal value did come back as $460,000, but the loan amount has not been changed as the original application was for $360,000.  If you would like the amount to be increased, that would be something we can submit for you to insure that you can be approved with the higher monthly payment.

4)  If you choose not to impound, the cost is 0.25% points for conventional loans.  That is the fee that most lenders including ourselves follow.  It is absolutely your choice if you would like to impound or not.  This is not negotiable as all clients of Provident Savings Bank have the same loan program are given the same opportunity to include impounds or waive them at a cost.

5) Unfortunately, we are associated with Credit Bureaus or have the ability to influence your credit score.  We only order credit reports from Experian, Equifax and Transunion in order to process your loan.  Our credit report venders do on occasion give us suggestions as to what maybe changed in your credit profile to potentially enhance the score.  They are still not guarantees of your credit score increasing or not.  Sophia offered the suggestions that were given to her from KROLL Credit.  From my review, it shows that not all of the suggestions were completed correctly and therefore the credit score did not move in the correct direction.  Again, we are NOT in the business of credit repair or credit counseling, we only give suggestions that were offered to us from the Credit Companies directly that MAY be possible changes to your profile to enhance your credit.

6) Your loan application was with PROVIDENT SAVINGS BANK and Sophia Wong as your loan officer.  That has not changed.  The fact that Sophia has transferred to another branch does not have any bearing to your loan file or interest rates.  Your application again is with PROVIDENT SAVINGS BANK and that is all that is agreed upon with your application and consent was given.  There is no consent necessary for our company to change locations internally.

If you have any concerns or additional questions, you will need to make an appointment with me to meet in our office so we can address them for you.  Constant faxes and emails are NOT the best course of communication to help you resolve your concerns.  Your property is within a short driving distance which will not be much of an inconvenience.

Jeffrey Hsiao
Branch ManagerProvident Bank – Mortgage Division

626-271-9199
626-236-5580 FAX

Some notable excerpts and my thoughts on Mr. Hsiao’s response:

Mr. Hsiao FAILED to explain why the Provident Bank Mortage interest rate increased from 4.5% to 4.75% while FNMA rates were essentially the same.

Mr. Hsiao wrote:

The quote with Interest Rates and Fee’s are definitely very reasonable.

Note that he does NOT specify or justify the interest rate anywhere in his response.

The loan has been locked with another lender at 4.375% with NO points and NO impounds.

1) Regarding his refusal to answer my questions:

The Power of Attorney cannot be used unless the original is shown to us in the office by you.  Also, the Power of Attorney IS NOT notarized and has no validity.

Apparently, Mr. Hsiao doesn’t have the slightest clue how authorization to release information can LEGALLY be provided.

He claimed that the power of attorney was not valid because he did not want to answer my questions.

Why did he tell me that my client would have to call him to authorize communications with me?

Why did he ignore her calls?

Why did he LIE?

And why did he NOT require that my clients provide a notarized power of attorney to release information to the LENDER and for PROVIDENT BANK?

Did Provident Bank obtain my clients’ credit report illegally?

According to Mr. Hsiao, that must be so as they did NOT provide any notarized authorization.

2) Why did they increase the 1/4% interest rate without any LEGITIMATE reason:

Your interest rate is NOT Locked and was explained to you that it may fluctuate during the process until you have locked in.

Mr. Hsiao FAILED to answer the question.

Nothing changed with my clients’ qualification. The loan is now locked at 4.375% with another lender.

Clearly, Mr. Hsiao increased the interest rate to unduly enrich himself.

But there’s MORE:

I did have a very detailed conversation with another Branch Manager who gave Christine a quote and the information that was provided to obtain the quote was not correct to your specific loan file.  The quote was not given for a Cashout Refinance at 80% LTV with a 720 FICO.

I am ready to testify under oath that Provident Bank Mortgage Glendora branch manager Anthony Olague quoted 4.375% for a cash-out refi with an 80% LTV and middle FICO scores of 720.

It’s beginning to look like Jeffrey Hsiao is not the only CROOK at Provident Bank Mortgage and I’d like to question Anthony Olague under oath — somebody is LYING.

Would Anthony Olague ALSO have increased the interest when it came time to lock?

3) The failure to inquire whether the borrowers would like to adjust the loan amount after the appraisal came in higher:

You applied for a 80% Loan to Value base off of the original estimated value of your house of $450,000.  The appraisal value did come back as $460,000, but the loan amount has not been changed as the original application was for $360,000.  If you would like the amount to be increased, that would be something we can submit for you to insure that you can be approved with the higher monthly payment.

Is it really Provident Bank Mortgage procedure to wait for the BORROWERS to “submit” a request to adjust the loan amount to 80% after they applied for an 80% loan and the appraisal comes in higher than expected?

Incredible incompetence.

The appraisal for my client’s NEW lender came in at $465k ($5,000 higher) and it only took a few minutes until the loan coordinator contacted my client to inquire whether they would like to increase the loan amount by $4,000.

Not only does it make sense to adjust an 80% loan to 80%, but mortgage brokers get paid MORE for HIGHER loan amounts with this REBATE pricing (no point loan).  The higher the loan amount, the more they get paid.

Apparently that’s not an issue for Mr. Hsiao because he just raises the interest rate 1/4% any time he wants to make a few thousand dollars more.

4) Failure to explain cost and terms for impound accounts.

If you choose not to impound, the cost is 0.25% points for conventional loans.

Yup, that’s what I found out when Glendora branch manager Anthony Olague gave me the 4.375% quote.

The question remains:

Why weren’t my clients properly informed of the cost when loan agent Sophia Wong made them decide whether to go with impounds?

5) The utterly ridiculous recommendations to increase the FICO scores (the scores went DOWN):

Sophia offered the suggestions that were given to her from KROLL Credit.  From my review, it shows that not all of the suggestions were completed correctly and therefore the credit score did not move in the correct direction.  Again, we are NOT in the business of credit repair or credit counseling, we only give suggestions that were offered to us from the Credit Companies directly that MAY be possible changes to your profile to enhance your credit.

In fact, my clients DID follow the idiotic recommendations and the scores went down.

This goes to show what all too often happens when you take free advice.

6) The switch to a different branch after application without my clients’ consent:

Your application again is with PROVIDENT SAVINGS BANK and that is all that is agreed upon with your application and consent was given.  There is no consent necessary for our company to change locations internally.

That’s nice to know!  Although the paperwork didn’t mention Provident Savings Bank, but Provident Bank Mortgage.  Does it make a difference? I don’t know.  I DO know that borrowers also have the option NOT to apply with Provident Bank Mortgage.

7) Mr. Hsiao’s refusal to communicate in writing:

If you have any concerns or additional questions, you will need to make an appointment with me to meet in our office so we can address them for you.  Constant faxes and emails are NOT the best course of communication to help you resolve your concerns.

Of course Mr. Hsiao doesn’t want to put anything in writing.

Fortunately, we DO have the faxes and emails and we can PROVE their lies, deception and utter incompetence.

Never ever do business on the phone unless you can legally record and you’re ready to spend many hours transcribing.

It’s SO much easier to prevail against these crooks when you have everything in writing.

Not to mention that I really don’t want to be in the same room with creeps like Jeffrey Hsiao.   It’s bad enough to have to READ his lies.

Mr. Hsiao is a LIAR and I highly recommend staying away from him and anyone else who hires him after Provident Bank (hopefully) fires him.



3 Responses to “10/6/10: Branch Manager Jeffrey Hsiao email to borrower”

  1. This borrower call my office and based on the information she gave me I quoted the current rate, I was not aware she was dealing with another branch and another loan officer, each branch and loan officer is independant of each other. To question or accuse me of lying when I had no other dealing with this person other than one phone conversation is totally unfair and not justified. I have a good reputation and if this borrower had a problem with one else at our bank they should of taken it up with our corporte office.

  2. Anthony Olague

  3. Anthony, I was the one who called you and as you know, I was very impressed not only with your quote, but you gave me the add-ons for cashout, no impounds, etc.

    I do NOT know whether you ALSO intended to increase the rate by the time the loan was ready to lock.

    However, I DO know that Jeff Hsiao increased the rate for NO reason and apparently big boss Steve Atwood did nothing to correct the Provident Mortgage unfair and deceptive business practices.

    In fact, Mr. Atwood hasn’t even had the courtesy to RESPOND to us!

    And that’s why my clients sent their complaint to the FDIC and OTS last week.

    After all, my clients had to PAY me to get them the rate they deserved and while it was certainly money well spent as they’ll save almost $30,000 in interest over the life of the loan, NOBODY should ever have to pay me or anyone else because liars like Jeff Hsiao jack up mortgage rates when it’s time to lock to increase their PROFITS.

    I’ve been meaning to post the complaint and all the exhibits, but I’ve been very busy. Please check back here or subscribe to get a notification when I get to it.

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