PenFed Mortgage?

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Hello,
Did anyone recently fill out a home mortgage application with PenFed. Or recently purchased a house using them as your lender? 

If so, can you tell me what you're experience has been liked dealing with a long distance lender?

Why did you choose them over ones locally or others nationally?

Thanks.

Member Summary
Most Recent Posts
I went through the process of purchasing a new construction home still under construction.

I was locked in for a 5/5 @ 2.... (more)

Dayne411 (Aug. 28, 2016 @ 6:58a) |

I often wonder if anyone within the upper management of PENFED read or get feedback off of FW or customers satisfaction ... (more)

fattywallace (Aug. 28, 2016 @ 2:07p) |

During my last closing with Penfed two years ago they were late with their paperwork which they only told me about the d... (more)

Lurker1999 (Sep. 22, 2016 @ 5:24p) |

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Be PATIENT you would need to be with them, theyr're SLOWWWWWWWW!

Very slow ... very VERY slow, and unresponsive.

But, everything went through on time, and no issues at all since the closing.

ok...thanks. good to know...

In addition to them being slow I had to resend several documents.

I can't speak to what they're like now but I've had 3 mortgages with Penfed and the experience has been great.  Got my current mortgage with them 2 years ago.

Overall happy with them

Slow and required more paperwork but happy with rate

Great product.....assuming you are talking the 5/5 ARM.

Service is slow, but they eventually get it done. I'd rather be doing a refi than a purchase, since time isn't an issue.

Agreed with rascott. We did a refi, everything was smooth until the week before our rep stopped talking (she went on medical leave), once someone took over we closed a week late. It was no problem for us.

2.8% for five years, then 2.6% for the next five years. $0 in closing costs on a .5MM purchase. There were a couple minor hiccups, but honestly, with these numbers I would be happy with Penfed if they mailed me a bag of poop with each request for documentation.

I closed about this time last year. Was able to close in 45 days I believe. Communication is not great but they will get there.

i did a 30yr fixed refi at 3.125. it was the smoothest experience i had with any lender. Before that dealt w/ chase, bofa and a local CU i think their comm is pretty solid, and they have called me when there were problems with a payment going through and they removed fees w/o hesitation. If i need another loan i will definitely start my process there, as they are very competitive though maybe not the best on any given day.

If you are self-employed be prepared for torture (at least 5 years ago).  They had crazy underwriting requirements that weren't even possible.  It was January and they wanted a filed tax return for the previous year that wasn't due till April.. crap like that.  And when I explained I couldn't file because I was still waiting for 1099's they couldn't understand.  Also, they wanted proof of closing funds in an account for at least 3 months with no transactions over $10k in any of the 3 months.  Problem was my business income would come in once every two months and be over $10k.  Even though the $10k had no impact on the down payment balance I would be using.  Had to get a waiver for that too.

But I still have them and would probably use them again.  Couldn't beat their rates or fees at the time.

Good luck.

They said they lost/damaged  some of closing documents after 3 days after closing and wanted me to resign it. I did it, again came back after 7 days, I whined but did it , they again came back with the same request after 15 days, i stopped responding them. They tried to chase me for another month by phone/email etc but then stopped..

I hope you get the idea

their 5/5 product I think is the best. Had 2.75 for the last 5 and just adjusted to 2.6 for the next 5. Works for me.

rismoney said:   i did a 30yr fixed refi at 3.125.
When did you get that? Been waiting for it to go there before I refi, haven't seen it go below 3.25% recently.

OP - I remember this subject coming up and responding to it. See - LINK 

They are the most incompetent licensed financial institution I have ever dealt with, by a large margin. Be prepared for closing delays.

quaters said:   If you are self-employed be prepared for torture (at least 5 years ago).  They had crazy underwriting requirements that weren't even possible.  It was January and they wanted a filed tax return for the previous year that wasn't due till April.. crap like that.  And when I explained I couldn't file because I was still waiting for 1099's they couldn't understand.  Also, they wanted proof of closing funds in an account for at least 3 months with no transactions over $10k in any of the 3 months.  Problem was my business income would come in once every two months and be over $10k.  Even though the $10k had no impact on the down payment balance I would be using.  Had to get a waiver for that too.

But I still have them and would probably use them again.  Couldn't beat their rates or fees at the time.

Good luck.

  I had to recalculate all their GFE numbers for them and explain to the processor how "points" worked.  Literally.  They were also using an expired HUD-1 form... and a VP got back to me and told me thanks for catching it, they will now use the new HUD-1 nationwide.  Then they failed to close on time so I had to go with a "normal" lender because the escrow was about to fall apart.

Echoing others here: Great rate, but slow as hell. They'll come through in the 11th hour.

As is obvious from the tone here its hit or miss with them and who you get as a processor. I missed, twice, and found another bank.

If you are a "simple" case then they may work out for you. If you are a contractor (b2b or 1099) with any sort of unusual income then find someone else. In my case they would not count my allowance for housing (part of a contract) but DID count the rent against my DTI. (my "base" pay was lower because of the housing allowance - that was there to offset time-and-a-half because I was hourly on a fixed rate contract)

I found a local bank that had no issues with how I was paid.

ok...thanks all

I had to fire them because despite multiple promises over w-e-e-k-s , they never would have closed on time on our purchase. They were horrible. It took them two weeks just to get our (pre approved) application into their processing system.

Turned out okay, because we got professional, speedy service and a better deal from another originator.

Never again.

I had a pre-approval but I dumped them when their costs weren't near the lowest for me when I was really ready to buy and when I really really didn't like the Penfed Realtor at the first houses I went to look at in person. (I don't think the same as a "network one", they have an office in town with "Penfed Realty" on the building).  They also switched between my initial approval to that time to where you really got no benefits and they over-charge origination fees if you don't use the Penfed Realtor and title co for a measly 1% origination discount.  And their exclusions on things covered with the closing credit with 5/5 dropped things to probably around 1% only in that case too.

I was 100% ready to buy either of a couple of those houses immediately and may have if I had my end Broker/owner/realtor at the time instead.  The penfed realtor I was assigned was pretty useless but aside from that she was too big to be able to go up stairs or the back yard or leave the entry room of the house, where I guess she stayed either to avoid being covered in sweat or because she had a medical issue.  Either maybe not her fault, but pretty useless to a "client" deciding on purchasing a house.  I didn't rely on any notes from final broker about "feelings" in any rooms, but he did have a few minor observations that were helpful.

Bend3r said:   She was pretty useless but aside from that she was too big to be able to go up stairs or the back yard or leave the entry room of the house, where I guess she stayed either to avoid being covered in sweat or because she had a medical issue.  Either maybe not her fault, but pretty useless to a "client" deciding on purchasing a house.  
  
Of course being a land whale is her fault.  Or let me guess...hormone imbalance?

I went through the process of purchasing a new construction home still under construction.

I was locked in for a 5/5 @ 2.75 and ended up dropping them for two reasons.

1. Their UW guidelines made it very difficult for them to write the mortgage. The biggest issue was that the builder had control over the HOA until all units were complete. The HOA docs clearly state that it will be passed onto the condo owners upon the closing of the final unit (one month after ours closes), however we had to escalate the issue significantly for them to write it. 

2. The bigger issue was complete lack of communication, our mortgage specialist Patricia Colvard was completely MIA for weeks at a time ignoring multiple emails and voicemails from us. That doesn't fly with me. We pulled out from Penfed and demanded that they eat the costs for anything incurred so far.

We are now set to close with Leader Bank in 2 weeks on a 7/1 ARM at 2.625% with similar closing costs. Our mortgage specialist has been 100% better in terms of communication and doing his job in general. They are also an approved lender of the condo development so it makes things much easier from an UW standpoint.

Full disclosure, I have used Penfed for many car loans over the year and still recommend them for that.

I often wonder if anyone within the upper management of PENFED read or get feedback off of FW or customers satisfaction in general, exclusively pertaining to mortgages and the horrid stories and lack of services, and if they do, why in heck this organization being so good at other things is still so bad at servicing mortgages?

If I was CEO, many of the underwriters and mortgage loan officer will be fired on the spot!

During my last closing with Penfed two years ago they were late with their paperwork which they only told me about the day before the closing and the skittish sellers almost walked away. As a result Penfed wasn't even in consideration for the loan I closed on this month.

I might refinance with them though as their rate is still better but I'd never use them again for a purchase transaction until there's consistent reports they've cleaned up their act.



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