All Topics / Finance / Borrowing Question/LMI/ Rant

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Got a question for the more experienced brokers/bankers out there.
    I've had a loan with Adelaide Bank for nearly 6 years + now. Last year I took a 3 month mortgage holiday while I found a new job after being made redundant, which I did. It was extended one month to allow for the first pay period, at which time repayments began again.
    I was provided verbal advice via Adelaide Bank that during that mortgage holiday I had enough headroom in my loans to absorb any arrears/repayments/ as it was primarily an interest based product. I was advised at that time that once I began making repayments again i should be 'fine'.

    Fast foward to now. I am trying to sell my current home, use the funds raised to use as a deposit on a new one so I can take custody of my daughter. Went via my broker, who advised the funder (Resimax) were fine, waiting on Genworth LMI. Genworth come back and tel me my account is an arrears, and because I had a mortgage holiday, they wouldn't approve the loan, blaming their Underwriters or some thing like that. I would have a 15% deposit plus expenses covered totally. I go back to Adelaide Bank who are now saying 'oh we never said that' etc etc. I also asked them to speak to Genworth to find out what my options are. Again, verbally I was told that someone at Genworth had said 'tell him he can try and sell his place first then reapply'. I go back and say well I want someone to tell me definitely that I will get funding (and isn't that what I was trying to do anyway with the conditional contracts in the first place??!!), because I dont' want to sell, then find out after the fact genworth would make me wait 6-12 months before they'd consider lending again and be without somewhere to live. I go back to Adelaide Bank to ask them to clarify this, they come back again and say "oh thats not what we said". I go through my broker to Genworth who say "oh 12 months and we might consider it".

    I was given incorrect information by Adelaide Bank verbally on more than one occassion, and have subsequently asked for copies and transcripts of all phone coversations because I know what I was told. They're taking their sweet time letting me know if and or when this will occur. My following their verbal advice and doing what was asked, has clearly had a negative impact on my ability to obtain finance for a home, despite earning over $100K a year, and will have 15% deposit plus costs clear for a new property of about $550K, if I sell my property, and despite people in their office telling me the opposite.

    In addition, now the fact that Genworth declined finance is on the CRAA report and will be questioned by every lender for the next 7 years.

    My question is this – what the hell can I do now?? Adelaide Bank gave me the wrong information, I followed their advice, and am now unable to get finance for what I need, and no I can't get the full 20% deposit and negate LMI in time. I have to take custody of my daughter within 4 months max as my ex is terminally ill. I need to get into a larger home to facilitate that.

    Any advice anyone could provide at this stage will be very much appreciated..

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You should always try to get that sort of thing in writing.

    Was it you that asked in another post about getting access to the phone recordings? Maybe you should lodge a complaint with the bank ombudsman or the credit ombudsman.

    The CRAA issue is not that bad as you will not have a declined listed, but just an enquiry. It will be there for 5 years, but it is so bad.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Hi Terry
    Yes it was me, and I"ve put in that request. If they don't have an answer to me by COB tomorrow I'll go to the Ombudsman. I did try and get it in writing but they deferred me to some clause in a letter they'd sent me, which didn't answer my query at all, and when I re-requested it they refused to put anything in writing.

    My broker has informed me that if we do go via another LMI they'll see the enquiry by Genworth and apparently we still have to explain the entire situation, which, puts me back to square one…..

    Matt.

    Profile photo of DWolfeDWolfe
    Participant
    @dwolfe
    Join Date: 2009
    Post Count: 1,253

    Hi Matt,

    Man that is bad huh? Have you got a solicitor who can write a nice (nasty) letter to get the phone recordings? They may move a bit quicker if there is some legal threat. If you can get your hands on those you can try and get it removed. I would go with Terry’s suggestion and go to an ombudsman. ACA or TT are always looking for evil bank stories……..

    Keep your chin up, we are all on your side here on the Forums.

    D

    DWolfe | www.homestagers.com.au
    http://www.homestagers.com.au
    Email Me

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Thanks D – i'm considering all options at this moment, but my priority is getting to a point where I can borrow, and purchase. That's the immediate priority for me. I do have solicitors, one of whom is also a finance broker. Might give that a go..

    If any brokers or bankers have advice on that aspect, I'd love to hear it.

    Profile photo of v8ghiav8ghia
    Member
    @v8ghia
    Join Date: 2005
    Post Count: 871

    HI MAtt007,

    Bummer eh? Agree with Terry though – the cra is not that bigger deal. If you apply with a lender that does not use genworth (there are plenty of them – St.G, ANZ, NAB (not homeside) plenty of credit unions etc – although I am a tad out of date but others may set the matter straight) All it will show is that an 'enquiry' was done for X amount. Nothing more. Make sure the loan amount is different, and with a different lender and tell them you applied for a loan approval that fell through, but now you have found another property and you  A. prefer their rate  B. someone recommended them C. You've always loved bank X or D. Another plausible explanation (such as the truth) and you may find it is no issue at all. Just be upfront in disclosing the 'previous preapproval that 'may' show up on y our credit file' and I'm sure you'll be ok. All the best regardless.

    Cheers

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371

    Have you tried going to a major. As I’ve said in a few posts CBA use gemworth however get automatic approval up to 1M. E.g. If they approve the insuerer automatically approves. Cba in my opinion is far more flexible than the other major 3: – saying that I think Westpac insure there own loans ( standard deals).

    Go to a major and the deal won’t have to be seen by a mortgage insurer.

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Thanks Banker, I'll look into that further.. appreciate your response.

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