TD Bank Renegs on Commitment Letter and Tries to Hide Behind Unreasonable Document Requests

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Like many families, we've applied for a refi on our New York City apartment.  The refi is for an amount equal to approximately 28% of the appraised value.  This seems like a pretty safe transaction since so many people we know have financed up to 100% of appraised value in the last six months.  Rates are low and it's a good time to move cash out of real estate in a bad market.

Here's the latest message I received from the mortgage banker I've been working with for 50 days. (I submitted all or most of these documents six weeks ago, got a Commitment Letter, and then that letter was shockingly cancelled this week.  The Bank has now offered me an alternative solution with significant points, closing costs, a higher interest rate, and significantly worse terms.  I think the banking term for this behavior is "larceny."

Plus, lots of fun photocopying so that I can pay extra points, interest, and principal compared to TD Bank's signed Commitment Letter they failed to honor.  Here's an example of the fun spirit of working with these idiots:


Hi Dave, I'm glad we were able to restructure the loan and receive approval.  These are the conditions requested by underwriting. Please review and let's schedule a call to go over it together.

 

  • Appraisal.  Pending.  
  • Most recent 2 months bank statements to evidence business deposits for Business Valuation Resources LLC.
  • Most recent 2 months bank statements to evidence business deposits for other Schedule C business: Management, Scientific & Technical Consulting .  If fees are not paid regularly, provide alternative documentation to verify current receipt..
  • Terms and Conditions for Fidelity 401K. The account must be vested and allow withdrawals. 
  • Email explanation for the use of proceeds from this transaction. (call me to discuss)
  • Provide note for $1MM loan payable to Business  LLC.  Additional conditions may apply.
  • Expenses for property Pinnacle Loop: Recent tax bill, evidence of homeowners insurance.  If there are any association dues, kindly provide a bill or statement to confirm amount.
  • Signed and dated updated Balance Sheet for Business  through September 30, 2020.  Copy we have will expire prior to closing.  
  • Email explanation addressing significant increase in W2 earnings from 2018 to 2019 for Business  LLC.
  • Provide note for loan payable to borrower in the amount of $10,000 per month along with current receipt.  Additional conditions may apply.
  • Signed 2020 year to date profit and loss statement AND balance sheet for Schedule C business for Management, Scientific & Technical Consulting though 9/30 .  
  • Signed 2020 year to date profit and loss statement for Schedule C business: Business Valuation Resources LLC through 9/30.
  • Evidence of homeowners insurance with TD Bank mortgage clause, loan number, replacement cost coverage, and either paid receipt OR invoice to be paid at closing. 

TD Mortgage clause and loan number:

TD Bank NA

ISAOA/ATIMA

PO Box 39158

Solon OH 44139-0158

Loan#6020207284

 

Thank you

Peter 


With friends like this, who needs enemies?  Or can afford them.

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