Financial Business Review: Discover Wants Some Home Loans, JPMorgan REDEEMS

Jun 12, 2012 Full story: Wall St. Cheat Sheet 30

New to the mortgage origination business on Tuesday is Discover , as it introduces Discover Home Loans, perhaps filling a void as Wells Fargo writes one out of three domestic mortgages and banking coin, due to a dearth of competition.

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ark

Princeton, NJ

#1 Jul 3, 2012
There is something wrong with Discover Home Loans. We were shopping around to refinance, and of the 3 banks I was talking to, Discover offered the worst rate (3.75% with a quarter point, whereas I got 3.75% with .46 discount points from my current bank). So, long story short, we did not move forward with them, but we decided this at the point between giving my credit card info to pre-authorize an appraisal and before actually signing anything. The "pending" charge for $6.80 was supposed to come off of my credit card if I didn't sign the papers. But instead it turned into a $400 charge for an appraisal that is never happening. Thankfully Chase Visa's dispute process will protect me from having to pay. But I can't get Discover to reverse the charges, or even acknowledge that I'm not refinancing with them. I just found another charge for $20 on my mortgage statement for a payoff statement that they requested! Why am I having to pay for them being dumb and violating RESPA?
ark

Princeton, NJ

#2 Jul 5, 2012
Here is an interesting story. Chase will be happy they don't have to eat the $400, at least.

To:'Brown, Patricia'
I indicated verbal approval for a pre-authorization to my credit card. I also stated that I understood that I would need to sign the documents online to begin the actual application process, and it was stated to me that my credit card would not be charged for an appraisal until I signed those documents. It is quite a stretch to say that I authorized an appraisal, isnít it, since I never authorized an appraisal. If you are stating that you are refunding the appraisal charge because it was not conducted, are you then saying you lied on the phone regarding how I would not be charged in the first place? You know, you still violated RESPA.

Thanks for refunding the money you never should have charged. It only took me asking 3 times and submitting a complaint to the feds. How many times did Chase Visaís dispute department contact you? Iím assuming you didnít bother to respond to them either. This is ridiculous, and your whole company should be ashamed at your lack of professionalism.

Iím still going to tell everyone how horrible Discover is, especially since you cost me $20 that you should not have cost me.

From: Brown, Patricia
This is in response to your email below regarding your recent loan experience with Discover Home Loans. It is always our intention to provide every customer with an exceptional loan experience and sorry to learn this was not the case for you.

Recorded phone records for June 19, 2012 indicate you contacted our mortgage banker to proceed with a 20 year conventional loan. During the recorded telephone conversation, you provided your verbal authorization to charge the appraisal deposit to your credit card. The deposit was collected for the purposes of having an appraisal inspection of your home. Our records indicate an appraisal inspection was not conducted, therefore, you would be eligible for a refund. Per your request, Discover Home Loans has cancelled your loan application and submitted a refund of the $400.00 appraisal deposit. Kindly allow approximately 7-10 business days for your credit card company to post the credit back to your account.

We hope this information has been of assistance to you. Please feel free to contact the undersigned should you require any further information or assistance.

Respectfully,

To: Brown, Patricia
Patricia,
Discover Home Loans had control over what they should and shouldnít do at certain periods of time. You severely overstepped your bounds in ordering a payoff statement before I indicated my intent to move forward with you. Did I sign a loan application? The answer is no. I was simply in the process of comparing offers. It would have been stupid of me to proceed with Discover when you were offering the worst rate.

I do understand why you wonít reimburse my expense that you caused. However, you also charged me for an appraisal. For these reasons, I have submitted complaint number 120703-000452 to the Consumer Financial Protection Bureau, as a violation of RESPA.

I was talking to 3 mortgage companies, and none of the others acted irresponsibly as Discover Home Loans did. You can bet Iím going to telling everyone I know and everyone on the internet not to do business with Discover Home Loans. Your customer service is the worst.
Gabe

North Hollywood, CA

#6 Aug 18, 2012
In response to ARK:
I worked at discover home loans formerly Lending Tree Loan/Home Loan Center.. They don't operate unethically and follow all respa laws by the book.. In response to the appraisal deposit, they collect the appraisal deposit for appraisal purposes.. The initial 6.80 is a authorization on the card.. The $400 for the appraisal is refundable up until the appraisal is completed.. Prior to collecting the deposit, the licensed mortgage banker reads a script stating the terms of the loan and the acknowledgement of the loan terms including rate, term and costs of the loan.. They also explain in full detail in reference to the appraisal deposit..Nowhere in that script is this loan is based on you signing loan disclosures...this script disclosure is read to every borrower whenever a credit card is collected for the appraisal deposit.. If you were shopping for a loan, why would you give your credit card information for th appraisal deposit? That just doesn't make sense for you to blame Discover when you were in full disclosure at the beginning of the process that the card would be charged for the appraisal and you had to verbally agree to everything as far as terms of the loan and the appraisal deposit on a recorded line..They take customer service very seriously there..
Also,they don't even order payoff demands from your lender until the appraisal is in to make sure the value of your home is sufficient to make sure your loan qualifies...
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Common Sense

Lexington, KY

#15 Sep 20, 2012
Ark, isn't 3.75 with .46 points worse than 3.75 and a quarter (.25) point? You realize that means Discover actually offered you a better deal than your bank.....
Robin

Bhubaneswar, India

#16 Oct 9, 2012
This is yet another example of how financing companies fleece money from unsuspecting customers that would eventually erode their credibility, forcing people to search for other options in the very competitive financing market.

“Reverse mortgage loan Texas”

Since: Sep 12

Kingwood, TX

#17 Oct 9, 2012
New to the mortgage origination business on Tuesday is Discover (NYSE:DFS), as it introduces Discover Home Loans, perhaps filling a void as Wells Fargo (NYSE:WFC) writes one out of three domestic mortgages and banking coin, due to a dearth of competition.

Donít Miss: Wall Street Brief: Apple AWARDS TomTom, JPMorgan IGNORED Risks.

JPMorgan (NYSE:JPM) is redeeming some $9 billion on high-cost trust preferred capital securities, since new rules from the Federal Reserve disallow the use of such paper at Tier 1 capital. However, Brennan Hawken at UBS says the move should allow JPM to see a small increase to earnings.
Rachel

Lansing, MI

#20 Oct 22, 2012
We are working with them right now to buy a home. They seem fantastic. The banker is soooo much better than the other three banks that gave preapprovals. That is why we decided to go with them. He even returns calls at 7 pm on a Sunday night. So far I love Discover Home Loans.

“Reverse mortgage loan Texas”

Since: Sep 12

Kingwood, TX

#23 Nov 4, 2012
JPMorgan is redeeming some $9 billion on high-cost trust preferred capital securities, since new rules from the Federal Reserve disallow the use of such paper at Tier 1 capital. However, Brennan Hawken at UBS says the move should allow JPM to see a small increase to earnings.
Rachel

South Lyon, MI

#26 Nov 15, 2012
Rachel wrote:
We are working with them right now to buy a home. They seem fantastic. The banker is soooo much better than the other three banks that gave preapprovals. That is why we decided to go with them. He even returns calls at 7 pm on a Sunday night. So far I love Discover Home Loans.
I could choke reading my comment from a month ago. These people are clowns! I have been providing them document after document. They set up the closing, then the week of want septic measured. I get that done. Now its the night before closing and they are saying they sent our FHA appraisal in for a second review ands haven't gotten it back yet. Wth....why'd you set up the closing if you weren't done with the appraisal? Oh.....and they will not honor close on time guarantee with fha because hey require a 3rd party appraiser and if the appraiser makes them fall off their closing date, its not their fault. So again, beginning of process was perfect. Now this is a nightmare. The night before closing and we are waiting to see if they are going to approve the loan!
Robert

Chicago, IL

#27 Nov 20, 2012
Discover home loans is a joke.
Robert

Chicago, IL

#28 Nov 20, 2012
Discover home loans, BEWARE!!!!! I was pr-approved for fha loan two months ago. I signed the contract that I had to put $1000.00 Ernest money down. So we got the contract approved by hud with a deadline of November 30. Then we went on to pay discover 400.00 for the appraisal. Now I am up to 1400.00. I have a credit score of 671. I work for a company that makes 80% of the stainless steel in the WORLD!!!!! I make 55,000-60,000 a year! I was told last night that the underwriter will not approve the loan! I have children and its the holidays our dream just went down the drain. I had to call Irvine California at discovers main office just to get someone to answer me! Also their website discover home loans my status is generic and hardly ever updates! Its really useless!!! I just wish I would have had tried a mortgage company with more experience! I made a BIG MISTAKE! I don't want anyone else to make the same mistake as I did!
they are pretty

Menifee, CA

#29 Nov 24, 2012
smart finaglers,I will never use them, but will sue them!
A Justday

Hamburg, NY

#30 Nov 25, 2012
Never heard of IT....Go by your local banks!!!
Mike j

Chicago, IL

#31 Nov 25, 2012
I agree discover home loans will make your nightmares come true!!!!!!! Something needs to be done about these incompetent people!!!!!!!!! DO NOT USE THEM!!!!!!!!! I am out my house and 400.00 !!!!!!!!!!
Rachel

Marshall, MI

#36 Dec 9, 2012
Rachel wrote:
<quoted text>
I could choke reading my comment from a month ago. These people are clowns! I have been providing them document after document. They set up the closing, then the week of want septic measured. I get that done. Now its the night before closing and they are saying they sent our FHA appraisal in for a second review ands haven't gotten it back yet. Wth....why'd you set up the closing if you weren't done with the appraisal? Oh.....and they will not honor close on time guarantee with fha because hey require a 3rd party appraiser and if the appraiser makes them fall off their closing date, its not their fault. So again, beginning of process was perfect. Now this is a nightmare. The night before closing and we are waiting to see if they are going to approve the loan!
We did close. But the left us in suspense until 12:30 on Thanksgiving eve wondering if we would be closing at 3. They did it but the process was horrible, the took us through a million ups and downs. Horrible, horrible, horrible experience. On the plus side -- great rate, low payment, and closing costs were about $1000 than our local bank....ugh, you get what you pay for I guess. We signed out purchase agreement 10/11/12 and closed 11/21/2012. They refused to honor the "1000 Close on Time Guarantee," said that the appraiser was the one that cause the delay -- that was only because they felt he appraised the home too high so they ordered a second appraisal that came in at the same amount.... then they tried to require a third... that's when I called FHA on them, and amazingly enough closed a day later. DO NOT USE THIS COMPANY UNLESS YOUR DOCTOR CAN PRESCRIBE YOU SOME REALLY STRONG CHILL PILLS.

Since: Nov 12

Iligan City, Philippines

#37 Dec 9, 2012
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1stcomment

Milford, MA

#41 Dec 20, 2012
I have never left a comment or review about anything before. I don't complain about much but to anyone considering using discover home loans...BEWARE!!! So incompetent it made me throw up a little in my mouth. They have LIED and changed rates and fees numerous times throughout my loan process. I actually began to think it was some kind of practical joke. They dragged a very simple refinance out for several months before trying to charge me over $8100 in settlement charges and bumping my rate up .50%. I flushed $400 down the drain. Be smart and learn from my mistake...don't trust these snakes with anything.and just FYI I have excellent credit...same job for over 15yrs..never missed a loan payment on anything in my life...and plenty of equity...YOU'VE BEEN WARNED!...I wish someone had warned me.

Since: Nov 12

Davao City, Philippines

#43 Dec 24, 2012
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Oregon Resident

Corvallis, OR

#44 Dec 26, 2012
Working with Discover Home Loans to get my refinance for one of the houses has been a very frustrating experience for me. I have gone through several loan and refinance applications with several different companies. Discover Home Loans is the worst lender. From the mortgage broker to the account managers, none of them have been very responsive to my requests. I have sent them the required documents a month ago and have done the appraisal. However, they are very slow in processing all documents and did not respond to my inquiries. They agreed to remove some of the cost a while ago (e.g., points) but I have not seen the updated settlement cost form or any loan document. I emailed them couple times and left voice mails. No responses. With the closing date 3 days away from today, I just don't know if I can close it in time. It is very frustrating. I wouldn't recommend Discover Home Loans to anyone.

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