National City might block refinancing

"An internal document that shouldn't have been made public"...that says it all right there. Any way the banks can screw their customers, they will. Every banking law for the past 75 years has favored the banks, not the consumer. And now the banks got even more greedy and it has backfired big time. Hope all those bank executives choke on their pensions. There are currently at least 6 class-action lawsuits against National City for deceiving their stockholders.

In my experience, NCB has made a practice of screwing the customer with their policies.

I had a client's subordination declined by NatCity on 2/18, a full 21 days after the request. The client would have saved over $500 a month on his first mortgage. The rate is no longer available now that rates have risen. Not only is my client stuck with a higher payment, I have no compensation to show for a month's work.

Hmm...

I've never had any problem with my National City mortgage.

I wonder if it has to do with the fact I put more than 20% down so I don't have to pay PMI, didn't get a home equity loan after the fact, have always been on time with my house payments, and have a 4.25% fixed, 20 year mortgage?

Tularecito wrote:

In my experience, NCB has made a practice of screwing the customer with their policies.

I will agree with my wife's statement that NCB never met a fee or or service charge they didn't like. A knowledgeable bank customer will avoid those bottom-line building, unpleasant surprises.

IT is true! Beware!!! If you have a National City 2nd Mortgage, you will not get subordianation for your 1st Mortgage refinance! I was denied 3/2008 subordination and lost my refinance opprotunity. The only way to get out of it is to pay out their loan and get other 2nd mortgage financing elsewhere or be forced to refinance your 1st with them on THEIR terms. That's a bunch of bull!! Damn that company....screwing the customers. SO IF there is a class action lawsuit for this, let me know and count me in.

Virginia Broker wrote:

I had a client's subordination declined by NatCity on 2/18, a full 21 days after the request. The client would have saved over $500 a month on his first mortgage. The rate is no longer available now that rates have risen. Not only is my client stuck with a higher payment, I have no compensation to show for a month's work.

you can have your second mortgage subordinated with national city as long as you use national city mortgage for the first mortgage. there are zero issues with a second mortgage subordination as long as you use national city mortgage! they are a great mortgage companyto work with, i have 6 mortgages with them currently

Tularecito wrote:

In my experience, NCB has made a practice of screwing the customer with their policies.

Let me guess, you spent more money than you had in your account and they charged you an overdraft fee. Hmmmm.... I did not realize that banks were supposed to lend money for free.

Virginia Broker wrote:

I had a client's subordination declined by NatCity on 2/18, a full 21 days after the request. The client would have saved over $500 a month on his first mortgage. The rate is no longer available now that rates have risen. Not only is my client stuck with a higher payment, I have no compensation to show for a month's work.

Hmmm... Why would a bank want to subordinate a 2nd mortgage with declining home values? Maybe you should have refinanced both.... Wait, there probably was not enough equity, so NCB should take the losing position... makes sense to me.

I am an employee at National City mortgage. I came from another bank and heard nothing but complaints. All I hear from NC customers is how they have never had any problems. The majority of customers are very satisfied. It is a great company to work for.

As far as the VA broker comment: Most subordinations that I wait for are taking 4-6 weeks. Be happy w/ a response in 21 days. All the other big 2nd mortgage companies are much longer.

It's too bad people who don't understand the mortgage industry try to say you can't get your 2nd mtg refinanced w/ NC. There is always a reason- whether home values decreased, your credit has changed negatively, or the investor has changed the guidelines. There is nothing NCM can do to change the guidelines that investors set. Those you will find accross the board. The changes that are happening are b/c of the market and the recent mtg crisis. It's not our choice.

No equity wrote:

<quoted text>
Hmmm... Why would a bank want to subordinate a 2nd mortgage with declining home values? Maybe you should have refinanced both.... Wait, there probably was not enough equity, so NCB should take the losing position... makes sense to me.

You must be a little "slow" so I will spell it out for you! It has nothing to do wth declining home values (unless it is a cash-out refi on the first and CLTV is raised.) I wouldn't subordinate to that either. But we are talking about no-cash out refi's. Many of whom are in adjustables. So why wouldn't you give your blessing to someone who qualifies for a a lower monthly payment, even if it is with a competitor? If anything, it would make the already risky 2nd mortgage loan with the declining home values, less risky because their is more cash to service the 2nd mortgage payment. The reason they will not is simply a tale of greed. By not resubordinating they can dictate with whom (themselves) and at what cost that 2nd mortgage clients can change terms of their 1st mortgages. I can't wait for National City to disappear!

I have a 2nd with National City and just to speak with someone in the subordination department is nearly impossible. The 1st time customer service transferred me to the lending department, I connected to an adult phone sex line! The 2nd time around I kept getting transferred to another person until I ended up talking with someone in collections. He was absolutely no help =(

Living in CA, they will not even offer to refinance our 1st loan. So it will be interesting to find out if they will subordinate our 2nd or not.

I read this the other day and started to panic because of a subordination I had oredered with National City. I am a broker in Missouri. I ordered the subordination late Friday Sept 26, and I kid you not, it was delivered Fed Ex the following Tuesday. I was, and still am floored. They didn't ask for title or appraisal...nothing. Just sent it. My CLTV is 87% also. It might be that I ordered it after I had everything done and told them I had an appraisal from 2 days ago. Not sure why everyone, but this is a bright spot. Hope this helps. I was paying off a 5 year arm that was interest only. Since the original was a purchase money, they would have known this to be true.

Here is thought... If you needed and 80/20 loan to get your house, you bought too much house! Sure the banks are taking advantage of you, but you allowed them to do it by not saving and putting more money down! Who is the fool? You are!

okay, so I recieved a letter today from NC that said efective 3 days from the letter, my equity line was frozen. The letter was Dated 7 days ago.
Last week sent a check from this acct to County Tax office. I'm told on the phone by NC they will not honor the check...
How am I supposed to know last week my line is frozend, if I just got the letter today!!!
The customer rep said too bad so sad....
I offerend to make a payments to my EquityLine for the amount of the taxes check. They said NO, they'll still refuse to honor the check that I sent to my tax office.
Ugh!!! what's with these folks.
How can I see the future!?? If they'd given me a couple of weeks notice, I could have dealt with this better.
This is a shady business practice.
My guess is the real issue is they are cash poor, with the lending market in general, and this is one way to recoup funds. Again, I'm okay with this, if they'd just honor my last check that I used to pay a bill in good faith!!
I'm very frustrated with National City right now.
@%$#@#$^#@

fyi.. I've always made my payments on time, and have great Credit. They only froze my equity line because they said my house was 'devalued'...due to the market.

I was just hit with a escrow shortage notice for 10K from NCB. My mortgage note is now doubled to pay this shortage for a year or they said I can pay the 10K upfront. Really? Can someone offer suggestion?

EAT wrote:

I was just hit with a escrow shortage notice for 10K from NCB. My mortgage note is now doubled to pay this shortage for a year or they said I can pay the 10K upfront. Really? Can someone offer suggestion?

Most lenders' standard terms for paying back escrow shortages are either 1) pay it all at once ($10k in your case) or 2) pay it back over the next 12 months. However, most lenders that I've worked with will allow you 24 months (I've even seen 36 months)if you ask for it. Based on my other experiences with NCM, though - and particularly with their recent financial troubles - I'm not at all certain that NCM will agree with the 24-36 month term, though. They don't need another foreclosure on their books either. Good luck.

With a $10k escrow shortage I'm assuming that you have a newly constructed home and taxes were unassessed at the time of closing? If they were any good, your loan officer should have prepared you for this inevitable surprise. I see it happen all the time, unfortunately.

NCHE is miserable. Their subordination department is unresponsive and unprofessional and won't return calls or e-mails. NCHE just refused a subordination at a 58% loan to value (because when the line was originally made it was at only a 54% loan to value). The subject property had several hundred thousand dollars of equity protecting their position. That's not sound business - it's not working with a customer - it's just "I hold the cards so screw you" mentality. I'm paying it down by $100,000 and can't wait to be done with them forever! Good riddance!

Screwed by NCM wrote:

IT is true! Beware!!! If you have a National City 2nd Mortgage, you will not get subordianation for your 1st Mortgage refinance! I was denied 3/2008 subordination and lost my refinance opprotunity. The only way to get out of it is to pay out their loan and get other 2nd mortgage financing elsewhere or be forced to refinance your 1st with them on THEIR terms. That's a bunch of bull!! Damn that company....screwing the customers. SO IF there is a class action lawsuit for this, let me know and count me in.
<quoted text>

Tularecito wrote:

In my experience, NCB has made a practice of screwing the customer with their policies.

Unfortunately, I must agree.