Complaint Review: Pac West Funding - Lake Forest California

Wendy, As any consumer should know and be aware, it is always good to know if you are dealing with a reputable company. Sometimes it is difficult to know when dealing over the phone or the internet. Even if you have companies to your home, you should still "check them out" before you waste any time or money. PacWest Funding is in California. I would check these sites in this order: 1. dre.ca.gov 2. bbb.org 3. ripoffreport.com For anyone doing business in California, you can check: dre.ca.gov to see if your agent is licensed with the Department of Real Estate. California allows companies to run their business under Dept of Corporations, California Financial Licensing, etc. So when dealing with these types of companies, you would want to check to see if your agent holds a license. Just because the company is licensed doesnt mean you are dealing with an expert. Also check the Better Business Bureau rating. It will tell you a little about the company. Ethically and otherwise, its important, so you can at least query your agent. If you were going to have brain surgery, you wouldnt have the nurse or the intake desk clerk do your surgery would you? If you knew a company had a bad rating, you wouldnt hire them would you? These are a few safeguards for us as consumers. Deal with an expert. Somebody who is licensed and has someone to answer to. The owner of the company should be able to respond to your questions. They dont want to be sued...Im sure they cant afford it. FYI on the Broker vs Banker comment by Trevor. If PacWest was truly a Banker, they would draw their own loan documents and they would fund the loan in their own name. They would hold what we call "warehouse lines of credit" with various banks. I am pretty confident they do not. They are in slang terms a "branker". They can act in capacity of a direct lender without all of the benefits of it. You can typically tell by reviewing your Final Settlement Statement/Final Hud 1. If there are more names on it than PacWest in the lending charges, there is your answer. There is no benefit however by using a broker or banker or branker for that matter. You have to choose a good, reputable company, a loan officer with integrity who cares about you! The mortgage industry is in troubled times and Im sure this site will be getting many more hits over the next several months.

There are a couple of people that I know who have worked there in the past. They Bank or fund there own loans as a direct lender when it is a loan that meets there peramiters, if it doea not they will broker the loan to a seperate entity similar to how any other broker would. ALso a Mortgage banker or direct lender does not have to disclose by law how much money they make in selling you a higher intrest rate, this would be called there "rebate" or "yeild spread" which a broker and banker can both make. But when your signing your loan documents with a broker it will show exaclty how much the broker is making in offsetting the closing costs with a higher rate. Direct lenders are funding there own money so they are not required to disclose exactly what they will make by selling that loan off That would be the only advantage financially to Pac west, Fund the smaller loan amounts inhouse as a direct lender, because there are limits depending on what state your in most people are capped at 5.99% of the loan amount. Where as a direct lender could probably get away with an extra 2 or 3 points without anyone knowing about it.

There are a couple of people that I know who have worked there in the past. They Bank or fund there own loans as a direct lender when it is a loan that meets there peramiters, if it doea not they will broker the loan to a seperate entity similar to how any other broker would. ALso a Mortgage banker or direct lender does not have to disclose by law how much money they make in selling you a higher intrest rate, this would be called there "rebate" or "yeild spread" which a broker and banker can both make. But when your signing your loan documents with a broker it will show exaclty how much the broker is making in offsetting the closing costs with a higher rate. Direct lenders are funding there own money so they are not required to disclose exactly what they will make by selling that loan off That would be the only advantage financially to Pac west, Fund the smaller loan amounts inhouse as a direct lender, because there are limits depending on what state your in most people are capped at 5.99% of the loan amount. Where as a direct lender could probably get away with an extra 2 or 3 points without anyone knowing about it.

There are a couple of people that I know who have worked there in the past. They Bank or fund there own loans as a direct lender when it is a loan that meets there peramiters, if it doea not they will broker the loan to a seperate entity similar to how any other broker would. ALso a Mortgage banker or direct lender does not have to disclose by law how much money they make in selling you a higher intrest rate, this would be called there "rebate" or "yeild spread" which a broker and banker can both make. But when your signing your loan documents with a broker it will show exaclty how much the broker is making in offsetting the closing costs with a higher rate. Direct lenders are funding there own money so they are not required to disclose exactly what they will make by selling that loan off That would be the only advantage financially to Pac west, Fund the smaller loan amounts inhouse as a direct lender, because there are limits depending on what state your in most people are capped at 5.99% of the loan amount. Where as a direct lender could probably get away with an extra 2 or 3 points without anyone knowing about it.

There are a couple of people that I know who have worked there in the past. They Bank or fund there own loans as a direct lender when it is a loan that meets there peramiters, if it doea not they will broker the loan to a seperate entity similar to how any other broker would. ALso a Mortgage banker or direct lender does not have to disclose by law how much money they make in selling you a higher intrest rate, this would be called there "rebate" or "yeild spread" which a broker and banker can both make. But when your signing your loan documents with a broker it will show exaclty how much the broker is making in offsetting the closing costs with a higher rate. Direct lenders are funding there own money so they are not required to disclose exactly what they will make by selling that loan off That would be the only advantage financially to Pac west, Fund the smaller loan amounts inhouse as a direct lender, because there are limits depending on what state your in most people are capped at 5.99% of the loan amount. Where as a direct lender could probably get away with an extra 2 or 3 points without anyone knowing about it.

If they are a direct lender, why do they outsource the people to draw documents? Does not make sense.

and i know people who work there and, your right there not very bright, they are a direct lender though