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Old 12-31-2008, 04:46 PM   #21
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The PenFed mortgage rates do tend to jump around quite a bit. When I asked the person helping me do our new mortgage earlier this year he said a lot of it will simply depend on their recent volumes and if they can handle the extra demand.

Between yesterday and today the 15yr rate dropped 0.25 back down to 4.625 (DW and I are refinancing from a 30yr).

Anyways, can't complain too much. I finally pulled the trigger and locked in the new rate with the quick online app.
And the 10 year was down to 4.5 today, which is the first time in recent months I can remember seeing it at less than the 15.

Bear in mind that on the fixed rate loans this is all driven by the yields investors demand to hold Fannie and Freddie paper. Pen Fed doesn't keep many (maybe not any) of the fixed rate loans, they simply make the loan and immediately ship it off to Fannie or Freddie. Where they have some leeway is in their adjustable rate loans, although I suspect these are somewhat market-driven as well. So when you see mortgage rates change every day, it is simply the flopping around of the agency MBS market being reflected in the rates.
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Old 01-01-2009, 04:30 PM   #22
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I don't know for sure, but I would imagine that they would let you change your email preferences to stop the non-account info from coming.
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There's either a website button or it could be handled by a phone call. I only get a notification when a statement's been posted.
Yup; you're both right; just took care of it.
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Old 01-07-2009, 07:50 PM   #23
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Well, I guess pen fed has become swamped. Noticed today that they are now charging a 1% origination fee on all fixed rate loans, which I believe is new.
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Old 01-07-2009, 08:00 PM   #24
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Hm- I also just opened my account to get my auto loan...

When I got the paperwork in the mail - the papers seemed to say there is a fee for the account unless I have $500 in there OR direct deposit - if not there are fees? Perhaps that's just the checking and not the savings? I only looked at it briefly, will take a closer look.

I also joined the military org to get the account, used a credit card for the membership fee and it automatically asks you to set up $ for your account, without thinking i added $ to the application from the credit card and it's considered a cash advance from my credit card company! I looked back and there is a warning that some cc's will do that, but of course I didn't see that until it was too late...
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Old 01-07-2009, 09:30 PM   #25
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Well, I guess pen fed has become swamped. Noticed today that they are now charging a 1% origination fee on all fixed rate loans, which I believe is new.
The orgination fee is new and they are swamped, or so they say. Here's the email I got a few days after I completed the online app a week ago.

Quote:
Thank you for choosing Pentagon Federal Credit Union for your home refinancing needs! As you can imagine, our volume is very high right now due to the recent drop in mortgage rates. With all of the excitement the new rates have caused, and our membership’s desire to do business with Pentagon Federal Credit Union, our refinances are now averaging from 45 to 60 days to close.

Don’t let this concern you, though, as you have already taken a big step towards completing your refinance by locking in your interest rate. You are now locked at 4.625% on a Fixed rate 15 year mortgage, which will be valid for a 90-day period. Because your rate is locked, you no longer have to worry about rate fluctuations. We want to apologize in advance for this delay, and we really appreciate your patience during this busy time.

The processor assigned to your application will be in contact with you as soon as possible, but this contact could take one to two weeks. Until you have been contacted, please keep this note as your verification that your rate has been locked. All members will be contacted as quickly as possible, in the order we received their application, in order to provide the highest level of member service that we can. To help our staff get through these calls as efficiently as possible, we ask that you limit your incoming calls to the mortgage department, until you have been contacted by your processor.

Thank you again for your understanding during this unprecedented level of volume, and we really look forward to working with you soon.
Pentagon Federal Credit Union
Mortgage Department
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Old 01-07-2009, 10:15 PM   #26
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NFCU has taken the same "screw you, we have too much business to care about you right now" attitude with us. They wouldn't work with us at all on our current 5.375% mortgage with them, despite our 30 years of business. We'd have a hard time getting that rate today from them without paying points.

Now we're refinancing with a small local bank (Territorial Savings) and I really really hope their 30-year fixed 4.5% with 2.375 points gets finished within the 45-day lock period. (Last week they briefly offered a 4.25% rate but it was gone three days later when we met to do the paperwork.) Territorial says it'll take them a couple weeks just to schedule an appraisal-- which they feel is essential even though we're only going to mortgage about 40% of the home's assessed value. But it seems as if the refinancing business is getting busy again, or else there's a much smaller crew to handle the workload.

We asked NFCU to subordinate their HELOC to our new mortgage and were told that we'd have to reapply. NFCU wanted a new appraisal, new application fees, and a subordination fee. This for a HELOC representing less than 10% of the home's equity. This is the same HELOC that they gave us three years ago along with our no-doc fast-track refinancing that even included a notary driving out to our house to do the closing on our back lanai. I guess those days are over.

Looks like interest rates have hit everyone's sweet spot, and customer loyalty means nothing right now. We also shopped PenFed and USAA and were getting close to applying with USAA when Territorial popped up on a BankRate.com search.

So a smaller local bank in your area might also have a similar refinancing surprise amid the crowds rushing to the big credit unions & banks...
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Old 01-08-2009, 08:04 PM   #27
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We paid a $20 membership fee to the NMFA to qualify for membership in PenFed (didn't fit any of their other qualification criteria). Once we were in, however, we let the NMFA membership lapse. They only required a $5 initial deposit. We've had CDs there since 2004 -- coming due in January. Time to decide what to do.
So I can ignore this

__________________________________________________ ___________
Your Membership to the National Military Family Association is About to Expire!

By renewing your $20 membership today, you’ll continue to have access to benefits like:
  • Eligibility for Pentagon Federal Credit Union
__________________________________________________ ___________


I got this today in my email, it implies that my PFCU eligibility expires with my NMFA account.

Thanks,
2fer
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Old 01-08-2009, 08:07 PM   #28
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Yes you can ignore it. A basic rule in CU land is "Once a member, always a member." No need to continue your membership in the NMFA unless you wish to do so.
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Old 01-08-2009, 08:28 PM   #29
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Yes you can ignore it. A basic rule in CU land is "Once a member, always a member."
Sounds kinda like the Marines, actually....
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Old 01-09-2009, 12:04 AM   #30
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Sounds kinda like the Marines, actually....
"You can check out any time you like..."
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Old 01-09-2009, 04:48 PM   #31
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Well, I guess pen fed has become swamped. Noticed today that they are now charging a 1% origination fee on all fixed rate loans, which I believe is new.
I just missed this fee by a few weeks; I pinged my loan officer about the new fee - asking if she knew if the fee was temporary (due to the refi rush) or a permanent addition. I received a 1-sentence boiler plate response:

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The 1% origination applies only to applications submitted 1/7/09 and after.
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Old 01-09-2009, 09:31 PM   #32
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The orgination fee is new and they are swamped, or so they say. Here's the email I got a few days after I completed the online app a week ago.
Good luck having your loan processor contact you. I settle in about 10 days and have NEVER spoken to mine, even though I made it clear I wanted to discuss things with her. I have gotten 3 emails - that's it.

I talked more to the settlement company, they were very nice.

I told them don't bother coming out unless I have the actual settlement documents 3 days prior for review.

This have been a quick turn around, but the communication has been horrible.
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Old 01-10-2009, 08:12 PM   #33
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We asked NFCU to subordinate their HELOC to our new mortgage and were told that we'd have to reapply. NFCU wanted a new appraisal, new application fees, and a subordination fee. This for a HELOC representing less than 10% of the home's equity. ...
So will you pay off the HELOC instead of subordinating? This is an issue I have run into. I recall loan subordination from the good ol' days and it was practically automatic. NFCU warned me that they were having trouble getting applicants loans subordinated (due to sinking RE values) by other institutions and a broker from another mortgage company said nobody's subordinating these days.

I'll be calling PenFed to see what thier subordination policy is for our HE Loan with them. The policy is supposed to be stated in the deed of trust, but I can't find it.
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Old 01-10-2009, 08:15 PM   #34
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I think subordination requests are the way that HELOC lenders are getting out of loans they really, really wish they hadn't made back in the day.
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Old 01-10-2009, 11:57 PM   #35
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So will you pay off the HELOC instead of subordinating? This is an issue I have run into. I recall loan subordination from the good ol' days and it was practically automatic. NFCU warned me that they were having trouble getting applicants loans subordinated (due to sinking RE values) by other institutions and a broker from another mortgage company said nobody's subordinating these days.
I'll be calling PenFed to see what thier subordination policy is for our HE Loan with them. The policy is supposed to be stated in the deed of trust, but I can't find it.
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I think subordination requests are the way that HELOC lenders are getting out of loans they really, really wish they hadn't made back in the day.
The HELOC doesn't even have a balance on it. I use it for a short-term slush fund when I need to write a big check right now and "can't wait" a few days to transfer funds from a brokerage account.

RE values aren't the issue either. Our refi is only 40% of the house's assessed value (still waiting on the appraisal, which will be above the assessment) and the HELOC's limit is only 7% of the value.

Brewer has the answer-- NFCU is probably cutting way back on HELOCs or getting their suckers customers to pay for them a second time.

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I'll be calling PenFed to see what thier subordination policy is for our HE Loan with them. The policy is supposed to be stated in the deed of trust, but I can't find it.
You may not even want to bother with the subordination if PenFed keeps up their zero-fees HELOC offer that's on their website this week... we may go hog-wild and apply for a HELOC that'd be all the way up to 10% or even 15% of our home's value!
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Old 01-11-2009, 06:49 AM   #36
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PENFED HELOC is great right now. 2.75% on our current balance. We used some of it last year to await some CD's maturing this year. But at the current rate (which is adjustable) we may just forget that plan as long as NFCU has 5.1% long term CD's available.
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Old 01-20-2009, 08:48 PM   #37
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Good luck having your loan processor contact you. I settle in about 10 days and have NEVER spoken to mine, even though I made it clear I wanted to discuss things with her. I have gotten 3 emails - that's it.

I talked more to the settlement company, they were very nice.

I told them don't bother coming out unless I have the actual settlement documents 3 days prior for review.

This have been a quick turn around, but the communication has been horrible.
I'm sorry for your negative experience. As a second data point, I received excellent service from PenFed and my refi took 5 weeks from initial application to closing. I never tried calling the loan processor, but I did exchange ~20 emails with her with prompt replies during work hours.

I'm very happy with the overall experience.
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Old 01-25-2009, 08:30 PM   #38
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Update on PenFed's new and "improved" website...

PenFed has launched a new website - a huge disappointment. The appearance of the site is virtually unchanged. Improvements are marginal and the site is even more cluttered than before with a jumble of ads and information overload.

When logging out there is a link to a survey asking you what you think of the new website. They will be getting any warm fuzzies from my feedback.
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Old 01-25-2009, 08:47 PM   #39
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On PenFed's new website. I think it is much better than it was. On the account page it has all my accounts,including credit cards, MM checking, CD's and IRA CD's.

I guess it is different strokes for different folks.
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Old 01-25-2009, 08:57 PM   #40
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I'm a tough customer.

I had expectations of not only improvements in functionality (OK, it is easier to find account info) but scrapping the long outdated appearance. Instead they put a new engine in their 92 Ford Taurus....
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