Today's top ten list concerns the banks most likely to get denied by their mortgage applicants. By this, I mean the instances where a bank goes ahead and grants an approval to an applicant, but subsequently the borrower decides take a loan from somewhere else. I believe it is fair to say that this is a list that no one wants to be on. Banks spend a
lot of time these days vetting things. When a customer gives them the "bait and switch," the bank experiences a real loss.
1) PHH: PHH is a huge player in mortgages, but they stay off of the radar because they don't have a retail channel. Most of their lending is channeled through the internet or via their partnerships. They also do a lot of servicing. Nevertheless, PHH originated almost 60,000 home loans last year. Unfortunately, they hoped to do a lot more business. One in six approved borrowers said "no" to PHH.
2) Wells Fargo: A bit more than 136,000 people walked away from Wells last year. But that's hardly a surprise, since Wells processed more mortgages than the 2nd, 3rd, and 4th highest volume lenders all by itself. But ignoring that, only one other lender experienced as high a rate of borrower rejection as Wells. More than one in ten approved borrowers at Wells (10.7 percent) said "no thanks" to the stagecoach.
3) SunTrust: 7.4 percent, 8,257 "is that all you've got?"
4) US Bank: 4.1 percent, 7,133 "try agains.".
5) BB&T: 3.8 percent, 4,043 walk-aways.
6) PNC Bank: 3.2 percent, 3,661.
7) Bank of America: 3 percent, 16,767.
8) GMAC/Ally: 3.2 percent, 2,193 "no, sirs."
9) Chase: 1.7 percent, 9,694 "we'll leave it."
10) Citibank/CitiMortgage: 1.5 percent, 3,343 "say no to that."