Loan officers and brokers can rant and rave about frustrating experiences with mortgage wholesalers on a blog created just for that purpose. But don't look for much gossip yet -- as the blog's only entry so far is from the site's owner.
Located at BrokerOutpost.com, the site -- which the company claims is the only mortgage broker blog -- promises to be a clearing house for bad wholesaler experiences.
Among the possible postings are comments about account executives that miscommunicate information about programs, procedures or closings.
"Many times wholesale reps will say anything to a loan officer to get them to submit the loan to their lender." Broker Outpost owner Darin Ferraro said in a written statement. "After the loan has been submitted and underwritten, lenders have been known to ask for more information on funding day, information that was not available from the start of the loan process."
False promises at the beginning of the loan submission process are a loss for everyone, including the borrower who is left cold after weeks of loan underwriting, processing, and money spent on appraisals and loan application fees, Broker Outpost said.
Wholesale lenders whose account reps promise undeliverable loan situations only to deny the loan at the end need to be held accountable, it added.
One message posted on BrokerOutpost.com's Lender Lookout forum, which is "where loan officers can flame their lenders who have done them over," advises to stay away from one specific wholesaler.
The message, written by Ferraro, accuses the wholesaler of denying a loan on the day of funding, despite that it knew the borrower had unique proof of income problems before the loan package was even submitted. The borrower was allegedly using a stated income loan because his business partners had issues with him disclosing the business income for his personal property loan.
The wholesaler "claimed they could do it, no problem with the unique income situation, conditions fulfilled, loan approved, documents signed at title," but on funding day, the lender "calls and says they need bank statements from the business he is part owner in," the message read.
While the blog could potentially shine a negative spotlight on specific wholesale reps or lenders, it also allows them to respond to the complaints, so others can make informed decisions on future mortgage transactions with those companies, Broker Outpost said.
"If anyone from (wholesaler's name omitted) would like to give a good explanation for this loan, I'd love for them to post it here. At least I'll get an explanation and not a 'sorry, can't fund this loan' while the customer is sitting in title," the message concluded.