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Fremont Bank Disloyal to Loyal Clients

We built a new home in 2001-**** and purchased quite a bit of the materials ourselves at disounted contractor rates in order to keep the costs down. We used Washington Mutual for the construction loan and transferred to Fremont Bank when completed. Our total cost to build the house was $371K and the property was $235 for 2.5 acres for a total of $606K. Other homes in the area were selling for $675-$750K at the time, so we knew we did well. In 2004 we were offered $1.3M for the home but declined. We refinanced in 2010 with Fremont Bank - never missing a payment and excellent credit and they were happy to have us. Our home fell in value as did the entire region to $540K appraised value. Not over the past 16 months homes have been going up and not down in our area. We applied for a refi at the latest low rates and FB sent out an appraiser who quickly review our property, comped it with some local trash in bad neighborhoods and discounted that our home was in some cases 25 years newer than the comps and valued the home at only $395. That is a drop of 27%. This means that our LTV was too high (they want 25% down otherwise) since we owe $325K. What perplexes me is that they already own our loan, that we never miss a payment, that we know our home is worth more and even offered comps. Being in a very small rural community, we offered a dispute using other homes within 6 miles of ours and they stated they were too far away to count. Mind you, the comps their contracted appraiser used were for cheap, rundown, previously foreclosed ranch style homes built using cheap materials and finishes. They responded to the dispute with the term "superadequacy" as there reason for declining the loan. Ironically, this means the home is too good or that we overpaid for things beyond reason and that they would never be able of realizing the real value. Funny how the home was not "superadequate" when they refinanced in 2010. Here is the B.S. they stated as to why they couldn't overturn the appraisal: The borrower has submitted sales data for four properties. Unfortunately all of the properties submitted are located too distant from the subject property to be considered acceptable by our investors. The borrower also provided some other arguments as to the alleged quality differences between the subject property and the comparable sales used in our report. Unfortunately, the determination of the merit, or lack thereof of the borrower's arguments falls outside the scope of a desk review. It would appear, considering the comments that the subject property suffers from marked super-adequacy which would affect any current or future value analysis. Considering the data supplied by the borrower; data contained in our appraisal; and additional data collected as part of the review process; there DOES NOT appear to be a preponderance of evidence to suggest that our value conclusion is not reasonable. We would recommend that anyone considering a refinance avoid Fremont Bank at all costs. There is a lack of loyalty to its customers. Their commets about being loyal to its investors is ***. They are a privately held company and not publicly traded. They could effect this loan if they wanted and they know it. It is not a bad loan. And did I mention. We have been dealing with this *** while my wife has been fighting cancer. This bank is the worst. We will find another and they will forever loose our money, the profit off the loan $150+K and as many customers as we can sway and steer away. YOU have been warned.
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1 comment
#1392765

I had the exact same experience! I'm looking for a new bank for every function a bank provides!

ID
#357823 Review #357823 is a subjective opinion of poster.
Location
Santa Clara, California