A quick search did not come up with very many results for this: does anyone have any experience (whether it be positive or negative) with Penfed?
I ask because I have been trying to get a pre-approval letter from them for the past 1.5 weeks. As a former mortgage processor, and now a mortgage underwriter, I'd like to say I at least have a decent idea of what is involved. It appears that the "mortgage loan consultant" that has been assigned my file is incredibly incompetent with even the simplest of demands.
Long story short: my "mortgage loan consultant" is alleging I have insufficient funds to close. I have no contact yet for either the processor or the underwriter, however, this doesn't seem like anything that should require said individuals.
I have provided $140,000 in assets, and have requested a $200,000 loan on a purchase price of $300,000. Firstly, they are indicating closing "costs" (not including prepaids or escrows) are $10,000. Secondly, they are alleging I have insufficient funds to close. I emailed them listing out my assets for a second time, asking if they were discounting any of my assets (e.g. 60% for retirement, 70% for investments) and they said they were not. That being said, they emailed me back saying that I have only $113,000, that I need $103,000, and that I am short $10,000 cash to close (yes, that's exactly what they wrote...sounds like they got it mixed up...regardless, the numbers don't add up...$100,000 down payment, now I only need $3,000...so then what happened to the $10,000 closing "costs"?...how did my $140k get reduced to $113k???). Sounds like they're just pulling numbers out of thin air.
As a mortgage processor, I've been on the receiving end of some rather unpleasant calls, and so I have bit my tongue and have been pleasant thus far, but this is getting rather ridiculous. Penfed does not seem to have their act together at all. They're telling me 1) there are actual fees and costs totaling $10,000, 2) they have calculated my assets incorrectly even after I listed out my assets twice, and 3) they said themselves I have $113,000, require only $103,000, yet am short cash to close. Are they even reading what they're typing? These are mistakes I never even made on my first day as a processor.
I'm hoping someone has some happy stories about Penfed to restore my faith in them.
Starting Score: EQ 773, TU 766Whoops! If one of the mods could move this to the Mortgages forum, would be much appreciated, thanks!
Thought I'd bump this one up since the wife and I are currently considering PenFed for our first mortgage. So far the process has been OK, but I can't rave or vent about anything in particular since we are just now finalizing the contract. The PenFed loan consultant explained that he needs a signed contract in order to even advise what additional information they will need, which is somewhat discouraging since I'm certain they will need even basic information like W2 statements, bank statements, 401(k) and other asset statements, paystubs, etc.
My contact at PenFed is in Alexandria, VA, not sure if that matters. He has been very quick to respond to email and phone requests (within an hour usually). Although I remain skeptical of the process, and am planing accordingly, he has assured us we can get a loan with them. We've been pre-approved through their automated process.
I think PenFed probably plays things close to the chest, and conservatively, but their loan consultants may not be the cream-of-the-crop. Their rates are incredible, and they have really awesome, flexible programs (5/5 ARM!) but you (we) may pay for it in terms of response and service.
Starting Score: 707 (Experian); 702 (Equifax); 740 (TransUnion)
Bumping this one up since the wife and I are now moving forward with PenFed.
I've been diligent about being a squeaky wheel with the loan consultant, but in his well-deserved credit he has responded within 1-2 hours. He is located in Alexandria, VA. I've seen reviews that make note that customer service may vary widely between PenFed offices. Our loan consultant has been diligent about responding in writing to answer our questions, and has called me a few times to elaborate.
We executed our final contract mid-afternoon on Thursday, March 13, 2014. We locked our rate the following day because the loan consultant was out of the office Thursday. Neither his voicemail or email advised this, so we were concerned we'd miss out on a nice rate. He called the following day (Friday) to confirm he'd honor the Thursday rate. We spoke on the phone briefly Friday to talk about next steps, and that afternoon we received the "requirements" package from the underwriter.
The underwriter's documents included a GFE, conditions we need to address, interest rate agreement, notice of intent to proceed, etc. The underwriter wouldn't move forward without a signed Notice of Intent to Proceed emailed to her, which we did that night. We sent most of the remaining documents required Monday and today, including W2's, paystubs, account statements (checking, savings, 401k), and Letter of Explanation for a 60-day delinquency on a student loan from more than two (2) years ago.
Our seller is trying to move things very quickly, so we are now trying to get the appraisal done this week, but that may be a tight deadline. Inspection was done before contract was signed, within 4 days of the signed binder.
Happy to answer any other questions from anyone considering PenFed. Has been mostly a positive experience so far.
Left out the obvious -- 5/5 ARM program. PenFed is no longer paying closing costs, whether you use their RE agent, title company, etc. or not. I'm sur they'll restart the offer (right after we close!) but it's not currently available according to the loan consultant.
My only mortgage experience with them was about 9 years ago and can't remember that I had any difficulties with them. May use them again for my next house or NFCU or USAA. If I don't use them it will be because the rates are better at one of the other locations.
Quick update to share in case anyone else is dealing with PenFed, or intends to. Our contact at PenFed sent us a list of about 12 items they needed in order to assemble the application for underwriting. This was on Firday, March 7.
We provided most of the necessary paperwork via email the evening of Monday, March 10. The remainder on Tuesday, March 11. We communicated by email and phone every other day or so since then to make sure our questions were answered and to see how the process was going.
On Wednesday, March 26 the PenFed consultant calls to say she cannot open our documents, some 8 days later! Our deadline for a letter of mortgage commitment is Friday, March 28, so obviously we weren't going to make that. I set her straight on the phone, re-sent the documents the afternoon of the 26th and spoke to her multiple times that afternoon to get her on track.
Today, our application package is in underwriting. Fingers crossed for a quick review.
My suggestion if dealing with PenFed is to be VERY diligent about pushing them hard to move things forward. Every day, calls and emails. Document your work!