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Conference 7.286::dcu

Title:DCU
Notice:1996 BoD Election results in 1004
Moderator:CPEEDY::BRADLEY
Created:Sat Feb 07 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1041
Total number of notes:18759

181.0. "DCU lowers amount avaialble for Equity Loans" by GIAMEM::MUMFORD (Mistakes made while u wait!) Mon Jun 26 1989 14:36

    For those who may fall (unwittingly) into the trap I just did, be
    advised that DCU has secretly reduced the loan-to-value ratio on
    their Home Equity Line-of-Credit product from 80% to 70%.  This
    means that, to calculate your potential credit line, you now take
    the estimated market value of your home, multiply by .7 (NOT .8),
    and subtract any outstanding first (second, etc.) mortgage balances.
    
    I submitted my application, along with a $100 application fee and
    the appraisal fee, and was only informed of the change from 80 to
    70% L-T-V as an "Oh, by the way..." AFTER the application had
    progressed through initial committee review.  I suppose if the DCU
    representative handling the process had forgotten to mention the
    "Oh, by the way...", and had actually ordered the property appraisial,
    that I would now be arguing with DCU to try to get my application and 
    appraisal fees back!
    
    All's well that ends well, I suppose, but I am growing weary of
    all the traps and pitfalls along the roadway of dealing with the
    DCU.  I am not usually given to public complaint, but this issue
    came hot on the heals of a snafu with my VISA application, which
    Mary Madden (no stranger to readers of these notes) did resolve
    very expeditiously.  However, as I told Mary, while I'm happy about
    being able to call her department and have issues resolved, there
    is something inherently wrong with an organization that practically
    REQUIRES that I make calls to "Customer Satisfaction" to get things
    resolved!
    
    Dick.
T.RTitleUserPersonal
Name		DateLines
181.1Official DCU ResponseTSE::LEEBERNobody Asked, Just My Opinion!Fri Jul 21 1989 16:0331
    This is an official response by Mary Madden of the DCU. The portion of
    that response, dated 13-July-1989, that applies to this note topic is
    included below. See note 2.22 for more information. 
    
    Your comments on this response should be posted here or directed to
    to DCU directly at Mary Madden's number (dtn) 223-6735 x207.
    (Note: New extension for Mary Madden)
        
    Carl Leeber
******************************************************************************
    RE: 181.0
    
    In many states, the housing industry has softened. Recently, we've seen
    the value of homes decline significantly. This is espcially true in
    Massachusetts. With this in mind, DCU chose to decrease its Home Equity
    loan-to-value ratio from 80% to 70% on April 21, 1989. 
    
    At that time, we updated our home equity applications and instructed
    our staff that if any applications received quoted 80%, they were to
    call the member and inform them of our new loan_to_value ratio. Though
    the majority of our members were informed immediately, a few
    experienced a delay in notification. Our apologies. 
    
    We were in no way trying to "hide" the change in the ratios. Since the
    majority of our members' funds are invested in DCU loans, including
    Home Equity, the 80% to 70% change was instituted to better protect
    these investments. If you have comments or concerns, we encourage you
    to contact MARY MADDEN AT DTN/223-6735 OR 508/493-6735, Ext. 207. 
    
******************************************************************************
181.2.2 is a non-answerGIAMEM::MUMFORDYou did what, to who?Wed Aug 02 1989 12:1412
    I find this reply (.2) unacceptable.  DCU will not approve an equity
    loan application without a property appraisal.  The appraisal process
    would highlight any "decrease" in property values.  Decreasing the
    L-T-V ratio does not address the issue at all, in my opinion.  What
    it does do is put the DCU further into the "non-competitive" column.
    
    Now we can have it all - minimal services, minimal access, ultra-
    conservative loan approval processes, uncompetitive loan products,
    AND lower-than-market savings rates!  Who could ask for anything more?
    
    I apologize if my frustration shows.  I guess that's why I'm in
    the process of joining a "real" financial institution!
181.3DCU lowers amount available for equity loanUSEM::MARTINTue Aug 08 1989 10:118
    I agree with your concern over dealing with the DCU.  I am very
    upset about the fact that I paid almost $600.00 for legal fees,
    appraisal fees etc. in December, 1986 to obtain a home equity loan
    and they now pay people $300.00 to open one.
    
    I have requested that they give rebates to the original home equity
    customers as a "goodwill" gesture.  This request has been denied.
    Does anyone else feel this way?
181.4re .-1: I wouldn't expect a rebateTOOLS::TALCOTTTue Aug 08 1989 15:048
If I bought a thingamajig at Sears in December 1986, and while shopping there
2 1/2 years later find they give a $300 rebate when you purchase a thingamajig,
it doesn't seem reasonable to expect them to give me $$ back. Same with auto
rebates - if Ford gives $X back on an '89 Model ABC, how can I justify asking
for $X on the model I bought years earlier?

						Trace