ASSIGNMENT:

A past client contacted us to refinance out of his existing loan. Back when we had financed his property that lender a few years afterwards was acquired by another bank and then that bank sold his loan to another lender who then was servicing this loan. Our client was very upset with the servicer because they had changed the originally required building insurance requirements and it was becoming extremely expensive to the point that he wanted to get out of the loan.  We were familiar with the new lender that was now servicing his loan, and they were mostly an Agency lender and it appears they were applying agency type requirements to his NON-Agency loan. Bad move on the servicers side.

CHALLENGE:

For us the transaction was very straight forward. The only real challenge became the California Senate Bill 721 (SB 721) which imposes new safety standards for apartment decks & balconies and can have far reaching implications for property owners, managers, and landlords.  Fortunately, our borrower previously had just completed some deck work on his building so when a licensed contractor was called out to conduct the SB721 inspection all work was deemed satisfactory and passed.

SOLUTION:

We placed the borrower into a low doc program that had less hassles with paperwork and the lenders insurance requirements were much easier to work with and saved our borrower thousands of dollars each year on his new insurance premium. During the refinance we even cashed out some funds for the client, so he had some additional funds to play with.  At ALB we like getting the job done and it's too bad the lender that was paid off didn't see outside the box. Otherwise, they could have kept a client instead of losing one.