Why did I get refinance offers from Primelending on my AHL mortgage?
Author: Rob K. Blake | Date: October 14, 2008 | Filed In: Refinancing Answers
Here’s the question…
“I live in FL and currently have a fixed rate mortgage with Accredited Home Lenders. I have been contacted by PrimeLending (a PlainsCapital company), saying that they have a “partnership” with AHL and would like to see about moving me into a lower interest rate loan. AHL would pay my closing costs, waive prepayment penalty, pay for the appraisal. In summary, no out of pocket for me. PL advised me to contact AHL first with any questions I had. When I asked why I was being approached, PL advised it was because of the FL housing market and AHL was protecting their interests - better to lose a % and switch me over than have me default and they get stuck with a house to foreclose on whose value may have diminished (I am and always have been current on my payments. This loan is 16 months old). Why would I be approached with this program? What’s in it for both parties and should I pursue this opportunity?”
Refinance Offers - False Claims?
It looks fishy to me. As we know a Dallas company, Lone Star Funds, bought the loans of the now closed Accredited Home Loans(AHL). Upon a little investigation, Primelending is also a Dallas based mortgage banker, but that’s where the trail goes cold.
It’s my guess that anyone with access to public records knows your mortgage was originated with AHL. That’s no mystery.
The claims Primelending is making of having a “partnership” with AHL is dubious at best. It’s probably some energetic loan officers who know all the AHL loans are high interest rated mortgages, and hope to entice borrowers to refinance.
If this is the case, they are “making up” the partnership idea just to sound more ‘in the know’ in the hopes it will persuade you to originate a new refinance application with them.
However, the idea of a defunct company, Accredited Home Loans, picking up the tab for your refinance closing costs on loans they sold to Loan Star is an out and out lie.
How would your closing costs get paid then, you ask?
Read this post to understand how companies that offer no cost refinancing “cover” your costs..No Cost Refinance Fantasy and Home Mortgage Advertisers Lie…Especially About Closing Costs.
Lastly, you are right in assuming no lender would want you to refinance if the loan was not in default…another tell-tale sign these folks are lying.
They also know you’ll have a tough time checking out their story since AHL is no longer in operation…just their servicing division and they are extremely hard to get on the phone.
If it were me…I’d never talk to these folks again.
If you are contemplating a refinance and you have the equity to do it…find an ethical local mortgage provider on your own. Never use a company who markets to you. To learn how to find such a provider, check out our Mortgage Advantage shopping method.
Thanks for the question.
Good Luck!
Author: Rob K. Blake
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Prime is so busy telling people how ethical that they are, they don’t know what their loan officers are doing.
I have witnessed some shady stuff there.
Please exbound…you could really help a lot of folks from making a big mistake!
Do tell!
RKB
PS: I want to write a full on Review…but I need more info!
You’ll remain Anon…thanks.
Thanks for the reply, Rob. Just FYI, here is the latest email I have from these folks:
———————————————-
I haven’t heard back from you in a couple of days.
Have you had a chance to verify with Accredited Mortgage Solution Program Department (877)***-XXXX about your offer?
You probably did receive the email from Accredited offering you this once of a lifetime opportunity to lower your interest rate, payment, pay for your closing cost & appraisal fee, waive your prepayment penalty, and possibly a reduction on your loan balance.
Do call me back so I can assist you in this great offer.
Thank you,
Lauren Nguyen
Sr Loan Consultant
_____________________________________
Tommy,
I called the number in the email…it’s just the main Customer Service number for AHL.
I hit 0 and got a rep…asked about PrimeLending. She said they do have a relationship with them…couldn’t elaborate much.
I asked if in fact, she could comment if the statements made by PrimeLending about AHL covering all the costs…she said she could not. She said I should talk to them.
When asked why AHL would refer a mortgage client who was current on their mortgage to PrimeLending for a refinance…an activity that is not in AHL’s best interest…
She said PrimeLending is one of there vendor’s who will return the loan to AHL…so AHL is not hurt by the refinance.
I mentioned that the new loan could be at a lower rate…and AHL is hurt by that…her response was…it “beats the loan going to some other company”.
When asked why if they were concerned about retention, didn’t AHL’s own refinance department contact folks rather than through PrimeLending…she said AHL may not be licensed in all States.
I find all these answers lacking in some form. It was clear Customer Service was given limited information…and told to refer folks back to PrimeLending to get answers on any specifics.
I stand by my original suspicion, closing costs will not be paid by anything other than YSP….
And it’s clear PrimeLending is in some way obligated to bring these refinance clients back to AHL(that would explain the waiver of the prepayment penalty - AHL-to-AHL refinance)…and that’s not shopping the market for the best deal.
There are much better programs and pricing in the market place than Accredited Home Loans….especially for someone who is current on their existing mortgage.
RKB