How do you Actually get a Loan from these People?

Home Forums Purchase Program How do you Actually get a Loan from these People?

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  • #75992
    trt2100
    Participant

    I’ve been dealing with this organization for more than a year. I have yet to have a single session with an MC due to the disorganization and incompetence of NACA employees.

    Here’s my horror story. I uploaded my documents in February 2021 and was given a date for my initial counseling session. It was a random Saturday in April. I didn’t receive a name or a time, just a date. The day of the session I get an email saying I was number 162 in line and I would receive a link prior to my call. Hours later I receive the email. Hours after I receive the link, my phone rings once. I assumed it was NACA so I called back, followed the prompts, and was directed to the line of my assigned counselor. The counselor didn’t pick up and her mailbox was full. I had to wait until Monday to call and find out what was going on. As it turns out, the Saturday appointment was during an event, which is essentially a marathon in which counselors try to get through as many files as possible. This counselor wasn’t even from my local office. I was assigned a counselor from my local office and scheduled for an appointment in July. I was told that this particular counselor would see me sooner if my file was updated. I reach out to the new counselor with no response.

    I received an email last night, a week before my appointment, stating that my counselor is no longer with the organization and that I cannot be auto scheduled as there are documents missing from my file. There are no documents missing from my file. I respond to this email explaining such, with screenshots to confirm, and nothing. Today I called to see what the issue was and was told that I won’t be able to have my first counseling session until January 2022. I was shocked that it was pushed back so far when I’ve been ready since the beginning of the year. The person I spoke with told me to contact the escalation department for assistance in getting the issue addressed.

    I called member services and spoke to an individual in the escalation department. I explained the entire situation and was met with “what do you want me to do?” The response caught me off guard so I began explaining the hiccups again and she interrupted me to say “i heard all that. Did you ASK for a sooner appointment??” The member service representative continued to be rude and asked who I spoke with because everyone was there with her and she didn’t know why someone would tell me to call her. I continued to calmly explain that I just need some assistance and the rep repeatedly asked “well what do you want me to say? I told you I can’t give you an appointment”. It’s one thing that this isn’t the right department to contact, but the lack of customer service skills was astounding. I honestly can’t believe that this person’s job is to speak with customers. It’s even more unfortunate that NACA claims to target low income individuals only to have someone talk down to them simply because many of these individuals have no other recourse in attempting to purchase a home.

    So at this point, I have to look into obtaining an FHA loan simply because NACA refuses to meet with me, despite starting the process a year and a half ago, and being ready for the next steps since February. It makes no sense that I’m shoved to the back of the line because NACA failed to plan for an employee departure. I wasn’t even upset about the initial appointment not happening but this is just inexcusable. Some friends of mine suggested NACA and I was excited to see that it was legit. Going through the process, seems like I’ll have better luck hitting the Powerball than obtaining a loan here.

    What’s the issue here? How exactly is NACA funded? There’s no way membership dues can cover the expenses of this organization. Do they hire anyone looking for a job, no matter the qualifications, and pay them pennies? In my experience, there’s significant correlation between employee quality and (total) compensation. I also totally get that the current housing market is putting a strain on everyone in this industry. Just can’t accept being forced to start over time and time again. Any advice would be greatly appreciated

    #75993
    nybuyer84
    Participant

    Join the club.

    I started over a year ago and I’m done after they mucked up the latest property I was trying to buy for reasons that are still not explained to me.

    I’m going with FHA or conventional with down payment assistance.

    You can read my very long thread if you’ve got time to waste- “My terrible NACA experience”.

    In my experience the folks working there are in fact underpaid and overworked. They keep hooking more people into becoming memebers when they know they don’t even have 1/50th of the capacity to handle all these people.

    So they just brazenly and negligently let files go to shit.

    Not sure what the end goal is for them.

    #75994
    trt2100
    Participant

    My friends who have gone through NACA vouch for them. I just have no idea how they actually got it done. Your experience is just awful. I can’t imagine being so close to having a new home only to have this organization get in the way. Good luck in your journey

    #76021
    s20
    Member

    I am sorry to hear about your experience. I would look at it glass half full as they are numerous positive experiences from other people. I would suggest stopping by your local office and ask for an appointment. The reason I am telling you this is that I had to do it myself a few times since I didn’t get an appointment over the phone or email. Here is my journey from two years ago: http://forums.naca.com/?topic=naca-graduates-come-share-your-success-story#post-58825

    #76047
    Peapod0609
    Member

    @trt2100 well I can tell you how NACA is funded, and that is through Bank of America. Honestly, I am not sure how someone in the program wouldn’t know that as they go over that in detail at the workshop with the video they have you watch. Maybe things are different now with the pandemic and they don’t spend as much time with that in the workshops? I don’t know. BOA just renewed their contract with NACA and are spending a ton of money (billions of dollars) with them, it’s on the NACA homepage still, I believe.

    I imagine the pandemic has complicated things, but have you tried just going into your local office? If there is not one near you, this may not be worth it. But if there is a local office near you, call them up, explain your situation, and see if you can talk to the office manager. I would also try just visiting the office and asking if someone can help you out. Other members have successfully done this in the past.

    I closed with NACA in late 2019, and I certainly had delays and trials and tribulations along the way as well. But once I got my offer accepted on the house we bought, things went relatively smoothly and quickly. It was just an issue getting to that point in the first place.

    As one other above pointed out, despite all that money from BOA, they are certainly overworked and understaffed at NACA. It’s by far the most glaring negative of the program, in my opinion.

    • This reply was modified 4 months, 3 weeks ago by Peapod0609.
    #76049
    trt2100
    Participant

    I didn’t ask how loans were funded. I asked how the organization was funded. BOA doesn’t pay the salaries of NACA employees. Or do they? Seems like that would be a conflict of interest since they send almost all loans to BOA.

    I’ll take a trip to my local office as you suggested. Hopefully I can get somewhere that way. Thank you

    How long was the process before you closed in 2019?

    #76056
    nybuyer84
    Participant

    NACA’s revenue comes from:
    Mortgage Performance Fees- $16.6mil
    Brokerage Revenue- $12.7mil
    Member Fees- $6.5mil
    Home Save Solutions- $1.2mil
    Rehab Income- $.7mil

    #76057
    trt2100
    Participant

    That’s interesting. Seems that they should be able to pay people enough. I wonder why the turnover is so high

    #76058
    nybuyer84
    Participant

    in 2018 NACA’s revenue came from:
    Mortgage Performance Fees- $16.6mil
    Brokerage Revenue- $12.7mil
    Member Fees- $6.5mil
    Home Save Solutions- $1.2mil
    Rehab Income- $.7mil

    They also invest in publicly traded securities. They have a total of about $100,000,000 in net assets.

    #76059
    Nelsont
    Member

    @trt2100 not sure if I’ve posted this before but the turnover is high because prospective employees don’t know what they are getting into.

    In short a mortgage counsellor is a 9 to 5 job with bankers holidays. Except the naca job is 60 to 80 hour weeks and weekend volunteering.

    To be a MC you need to take a state board licensing exam (just like doctors, lawyers and real estate agents). You can only counsel in the state in which you are certified (passed the exam). So this would be the first hurdle. Naca can’t hire just anyone, they need people who chose finance/mortgage regulation as a career.

    The next hurdle is the workload. As mentioned people who want to get into this industry are generally not the people who want to work long hours for an $80k salary when industry standard is 80K for 9 to 5. So you need someone who is passionate about volunteering and helping out. An also happens to be educated in finance.

    The last hurdle is bank of america. The easy fix would be to add employees. So let’s say for arguments’ sake naca increases compensation to attract more talent and reduce turnover. Bank of america would likely have to agree to higher compensation to naca on yearly basis (which we know they can afford) but they would also have to increase their employment. Right now bank of america is the #1 bottleneck from what I’ve seen in approving and closing home loans. So even if naca does everything to make qualification more efficient all you would do is increase the length of time bank of america takes to process loans.

    #76072
    trt2100
    Participant

    @Nelsont

    That makes sense. Sounds like a horrible situation to be in for a lot of the counselors. I imagine those that stay long term truly believe in NACA’s mission but I understand that folks need to do what’s best for their families.

    #76073
    trt2100
    Participant

    Thank you all for the suggestions. I took my friend’s suggestion and called my local office to see if there had been any cancellations. Luckily, my MC had an opening yesterday and fit us in. Finally made it through the intake session and looking to be qualified after a few months of payment shock. My advice for anyone struggling through this process is to be persistent. Reach out directly to your assigned counselor or the office admin. Don’t waste your time with member services

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