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Wednesday, December 17, 2008

Wells Fargo Reverse Mortgage Closing Delay Reverse Mortgage Loan (RML)

Verne Thompson said...
Wells Fargo Reverse Mortgage Closing Delay




This is an admonition to anyone shopping for a Reverse Mortgage Loan (RML) lender to think twice before using Wells Fargo bank. My current experience with them is bringing back unpleasant memories of an earlier experience with Financial Freedom, which was the arm of Indy Mac bank that specialized in RMLs.


On November 4, 2008 I sat down with the Wells Fargo’s Reverse Mortgage Loan (RML) agent at my home in eastern North Carolina and initiated a new RML. This new RML was to refinance a RML that I had gotten over one year earler through Financial Freedom. Since closing delays had made the experience with Financial Freedom very frustrating (12 weeks and one day), I specifically asked the Wells Fargo agent what I could expect the elapsed time to be for their closing date, and was proudly told that Wells Fargo had a policy of closing in 30 days or less.


Six weeks have elapsed as of today (12/16/2008), and I have not been able to get Wells Fargo to even set a closing date. I call their regional representative, she says she will check on the status of my closing and call me back, but she usually does not call back.


Since Christmas is only nine days away I am growing increasingly frustrated, and I am expecting Wells Fargo to use the holidays as an excuse to set the closing for the last week of this year or the first week of 2009. If so, my experience with Wells Fargo’s closing will far exceed their assurance of “30 days or less”, and may end up being very much like my experience with Indy-Mac/Financial-Freedom.


My RML with Indy-Mac/Financial-Freedom finally closed on May 31, 2007, and the FDIC took over Indy Mac less than two months later in July. The agent that took my recent RML application said several times that Wells Fargo was financially sound, but the guy with Indy-Mac/Financial-Freedom said much the same thing. Now I am wondering if an inordinate delay in setting a closing date is a sign that a bank is about to fail.


Does anyone have any inside information on this? Should I cut my losses with Wells Fargo and go with another lender? If anyone knows anything, my name is Thompson and my e-mail address is ssplowboy at aol dot com.



December 16, 2008 3:54 PM

1 comment:

  1. Well, the FDIC actually took over IndyMac in July of 2008, not 2007. So if you closed your loan in May of 2007, it was over a year later that the FDIC came in.

    If your loan isn't closing in a timely manner, there's usually a reason for it. One other thing that I would be concerned about is whether you actually are receiving enough benefit from the new loan to justify the closing costs. Usually it doesn't make sense, financially, to refinance a reverse mortgage that soon. Unless of course you will be receiving a substantial benefit due to the lending limit increase. Good luck.

    ReplyDelete

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