Until not too long ago eWarehouseOne had a policy: if a firm didn’t pass the application review stage, the company would return the mortgage banker’s money. At least that’s what company vice president Anthony Simich told National Mortgage News last month.
But as of last week Simich was no longer with the company and NMN found at least two nonbank mortgage lenders that not only wanted their application fee back but also their good-faith deposit money.
Casey LeBlanc, president of Alliance Direct Home Mortgage, San Diego, said eWarehouseOne has yet to return his $1,000 application fee and $15,000 of deposit money.
LeBlanc said ADHM was approved for credit by the privately held nonbank firm, and was assigned a warehouse account executive named Dave. “No last name was ever given to me,” LeBlanc said.
Now, LeBlanc is out his money, and has been trying in vain to reach Tom Reynolds, executive vice president in charge of warehouse lending at EW1. “All of my dealings were with him (until he was assigned the man named Dave),” said LeBlanc, “but now no one answers the phone there.”
Simich, who resigned about 10 days ago, told this columnist that although Reynolds was his direct supervisor at EW1, he never met him face-to-face. Reynolds has never returned telephone calls and emails sent to him by NMN.
He added, “I’ve been misled on a lot of things by this company,” adding that EW1 “keeps coming up with excuses on why they can’t fund loans.”
Another lender waiting on the return of deposit money is CityLights Financial of Agoura Hills, Calif., and its executive John Miller. According to Michele Perrin, a warehouse consultant who runs her own firm, Perrin & Associates, CityLights is owed about $18,000.
Meanwhile, over the past month, a handful of account executives who have gathered applications for EW1 have resigned from the company. The latest departure is David Barnes, who confirmed his resignation with NMN.
Barnes left a phone message saying he is “informing” his (now former) clients of the “severity of the situation” at EW1 but provided no other information. He could not be reached for a follow up.
Perrin, who represents small- to medium-sized nonbanks said she has been telling her clients to steer clear of EW1. She has been researching the firm’s background and doesn’t like the idea that it has no permanent headquarters.
Perrin also dug up a “dba” form on the company filed by David Eggleston.
The dba lists EW1’s address as Whittier, Calif., though there’s no mention of that address on the firm’s website. Perrin provided NMN with a copy of Eggleston’s letter of resignation, which is dated March 27. His official date of departure is listed as April 5.
An email sent to Eggleston was not returned.
Meanwhile, more lenders who filed applications with EW1 say they are having second thoughts about the company and are pursuing new lines of credit with banks. “I just obtained another line of credit,” LeBlanc said. “I need more certainty. I have loans I need to get funded.”
