AME Financial Corporation recently received notification from one of their main mortgage investors that they have been suspended from selling VA streamline loans or VA IRRRLS.
The recent suspension has affected one of LowVARates' approved and authorized VA Lenders, Flagship Financial Group. LowVARates and Flagship Financial are dedicated to helping all veteran homeowners as best they can.
AME is a correspondent lender and takes loans from third party originators (TPO). AME closes, funds, and sells these brokered loans to mortgage investors. The recent suspension has come from one of AME’s main mortgage investors.
Many VA streamline loans have been denied because of the recent suspension and for the time AME has completely stopped processing IRRRLS and VA refinances. The AME suspension has affected many veteran homeowners involved in a streamline or refinance process.
Because AME is a correspondent lender, they never have a direct relationship with the veteran home owners or other borrowers. The broker/TPO deals directly with the customer throughout the loan process. The broker, Flagship Financial, consequently has to handle and manage the brunt of the difficult situation. Many angry and disappointed veterans are currently unable to finish the streamline loan process.
In the course of the past year, well over 150 correspondent lenders have been forced out of business by tightening credit guidelines, increasingly strict investor relationships, and slowdowns in the mortgage industry.
Flagship Financial has built their business around catering to the home loan needs of Veterans. Flagship, like all of LowVARates approved lenders, has worked hard to bring the lowest rates, best service, and widest array of loan products to veteran homeowners.
Flagship Financial loan officer, Jason Skinrood, is frustrated with the current situation.
“Interest rates have gone up a lot higher than the current interest rates at which we have locked in and promised our veterans.” Skinrood said. “AME and its inability to honor these locks are now causing borrowers to have to take higher rates and in some cases perhaps lose the entire refinance."
Unfortunately, Flagship Financial and other brokers are currently caught in the middle of a sticky situation between veteran homeowners and AME. Many veteran homeowners have been promised certain interest rates and closing dates, but are now being told AME cannot honor these commitments and promises.
The Chief Operating Officer of Flagship Financial, Annette Lowder, is disappointed with sudden suspension of AME.
"We have veteran home owners that have closed on their loans, signed the dotted line and have acted in good faith, whose loan rescission period is up and AME refuses to fund these loans,” Lowder said. “It’s putting America's finest in financial jeopardy and hardship."
AME has not commented on the current situation and has not responded to inquires.
