Loan approval query brokers help

Discussion in 'Loans & Mortgage Brokers' started by Joey2020, 25th Jan, 2022.

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  1. Joey2020

    Joey2020 Well-Known Member

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    Hi all,

    Have you ever had an Instance where a loan is approved formally with conditions at settlement , where the client has met those conditions but the bank asks for a reassessment ?

    Or Have you seen a scenario where someone has been approved formally for a loan, and couple weeks before settlement the bank asks for a reassessment?


    Thanks
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
     
  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Banks can ask for anything up to settlement date. But highly unlikely.

    You've asked a few questions about these certain scenarios, is your banker/broker not directing properly?
     
  4. Morgs

    Morgs Well-Known Member Business Member

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    Yes on both
     
  5. Joey2020

    Joey2020 Well-Known Member

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    So essentially the client can lose 10% deposit should they fail the new assessment ?
     
  6. Joey2020

    Joey2020 Well-Known Member

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    So essentially the client can lose 10% deposit should they fail the new assessment ?
     
  7. Joey2020

    Joey2020 Well-Known Member

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    My broker and my bank provide me with great advice, I like to ensure that I get advice and my scenarios checked with other brokers like yourself. Thank you so much for your help I really appreciate it.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It's a possibility. They could losr much more if they cannot settle
     
  9. Joey2020

    Joey2020 Well-Known Member

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    How is that fair for the client as they got formal approval?
     
  10. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    If the deal is dodgy or fraudulent then it's the clients problem

    Generally they won't ask for more info unless audit picks it up
     
  11. Joey2020

    Joey2020 Well-Known Member

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    Thanks Tony
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    it’s not fair
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Here is an example of last week

    Formal issued, docs returned, trying to get lender to book settlement

    No we cant, the file is with Sales Quality review - ie making sure that credit and senior credit have done their job properly.

    So, asked bdm, what happens where a bank employee has made a boo boo and you have issued formal, and the borrower has acted in reliance of that info.

    Answer stunned me, well the loan off would be withdrawn and it wont settle, we had that before...............its in the fine print

    News to me, I always thought an accepted loan contract by both sides was valid and enforceable unless of borrower fraud etc

    ta
    rolf
     
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Similar to what happened to my client. 2 hours before settlement they found a mistake they made and wanted to reassess the loan. They had to reassess the loan and reduce hte loan amount reducing the loan amount and delaying settlement. Client was able to claim compensation from them.
     
  15. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I've seen loans not be funded when information on the application proved to not be accurate. Never had it happen to me, but I've had people come to me asking to get it fixed a week before settlement.

    I've also had pre-approvals not be honored for some very dumb reasons. Hasn't been a significant problem, but I have learnt that the deal isn't done until the loan has settled.
     

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