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The Bank Says Yes, The Borrower Says No

Adam R.'s picture

Posted September 26, 2013

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."