I am now in month two of trying to refinance my house. It should be a fairly simple proposition. Ok, maybe not as simple as during the bubble. Mortgages are not for everyone. I do think it is appropriate for banks to conduct fair risk assessments before they lend money. However, our bank has had our mortgage for 9 years and we have not missed any payments nor made any late payments in that time. I think that should simplify things for them. But they don’t seem to agree.
You see they are asking for a specific piece of documentation. It is a piece of documentation that I shared with them when I faxed a ream of paper over to them shortly after initiating the refinance process. The problem is that they are not accepting my document. They have their own template for this particular document and they will accept no other, Unfortunately, this is a document that can not be easily altered. I have checked with a lawyer and underwriters at another bank and they both say that my version of the document is both legal and acceptable. They also have both told me that I am not alone in this problem. They both know and have heard of many other folks facing the exact same situation with this particular bank.
Why not just switch banks? That is a question I keep asking myself. The simplest answer is that I am stubborn. I worked at this same bank as a mortgage loan processor and supervisor when I first graduated from college. Having been in the exact same position as the people at the bank that are I am working with, I understand the rules they are working within. I have been very careful not to vent my anger at the people I am talking to. These are not their rules and not enforcing them really does put their jobs on the line. My only hope is to keep working my way to someone who has some actual authority.
I am an incredibly fortunate, articulate and educated woman who has the flexibility to make lots of personal calls during business hours. I am also not afraid of rattling some cages. I have taken on this particular windmill to battle and I will see it through to the end, regardless of outcome. I see no reason why my bank should get away with denying mortgages to people who provide legal and valid documentation. .
But, I am also hedging my bets. I have no desire to cut off my nose to spite my face. I want to take advantage of low interest rates just like everyone else. That is why I have a plan to go elsewhere for my refinance should I lose this battle. I’m just not quite ready to give up yet.