2 thumbs down---MCR Funding Florida - Posted by SCook85

Posted by Rob FL on March 20, 1999 at 18:31:11:

What grounds would they have to sue you for cashing their checks based on a loan commitment and loan documents? It would kind of be the same as if the seller tried to sue you to set aside the closing after you had purchased the property as a buyer. Unless there was a fraud or forgery the bank would most likely be SOL.

2 thumbs down—MCR Funding Florida - Posted by SCook85

Posted by SCook85 on March 19, 1999 at 23:57:46:

I had a settlement to go to yesterday in which I should have picked up a check and a second mortgage. Instead I sat there for 2 hours waiting for the lender to decide if they were going to do the loan which they had provided us a comittment letter for, and made us jump through many hoops to get. I, the Buyers, the title company and the mortgage broker all sat around the settlement table while MCR Funding renigged on there comittment letter. The title company and all its employees said it was the first time they had ever seen a lender pull such a stunt. The mortgage broker who was using this lender for the first time said they never heard of such a thing happening.

This was very unprofessional. I called and spoke with there vice president and let them know that I would let as many people as I could know what they did. They said “Go Ahead”; so I am. By the way, an hour after everyone left the title company, MCR Funding decided to do the loan at 5% less LTV, Guess where we told them to go???


Re: 2 thumbs down—MCR Funding Florida - Posted by Sandy FL

Posted by Sandy FL on March 20, 1999 at 10:34:11:

One of my real estate attorney buddies saw this
happening at the closing table (for a closing he was
handling for the buyer). The first time, they played
ball. They went back and obtained the piece of paper
the lender suddenly needed, on the day of closing,
after the lender had already committed to doing the loan.
The closing was rescheduled.

The second closing day, again the same stall tactic.
The lender needed some piece of documentation that they
could have asked for 30 DAYS AGO. So my friend the atty called the lender’s BS and stated that if they did not close the deal today, they would be getting a bill from the buyers attorney and the sellers attorney for time spent sitting at now (2) closings where no closing took place.

I guess they did not want to pay for 4+ hours of attorneys time so they suddenly decided they had all the documentation they needed and wired the funds.

(I do not know who this lender was.)

Sandy FL

Don’t Forget the Broker… - Posted by JPiper

Posted by JPiper on March 20, 1999 at 09:50:33:

You gotta hate it when this happens.

I wouldn’t forget to give your mortgage broker his “share” of the credit. He’s “never heard of such a thing happening”?? When did he start in business…yesterday?

I would expect my mortgage broker to be dealing with people he has relationships with. If not, he should be telling me he is “pioneering” a relationship with a new investor. A relationship established through a certain level of business is going to be much more difficult for the investor to renege on.

The mental picture here is everyone sitting at a table in surprise. The mortgage broker should have been battling for this deal.

Don’t get me wrong…the basic problem is MCR Funding. But the way I see it is your mortgage broker had some responsibility here as well.


Re: 2 thumbs down—MCR Funding Florida - Posted by karp

Posted by karp on March 20, 1999 at 09:26:10:

This is one of those little known things that really help round out our education. You know how a deal isn’t a deal till it CLOSES? Same thing for these guys…

I have had approvals on loans where we were AT THE CLOSING TABLE SIGNING DOCUMENTS and I get a call asking for more information before they will fund it.

The worst thing I have ever had is a deal close and fund, where the lender decided not to do it after all.
It turns out it was a mistake on their part but I didn’t even want to ask how they UNDO a deal…
I think they would have to find a reason to call the note due.

Only way out of this that I know of is to make sure your Mortageg Broker/Banker has a GREAT relationship with their Underwriter. Now I know this is asking the improbable but trust me, it helps, ALOT!



Re: 2 thumbs down—MCR Funding Florida - Posted by Carol

Posted by Carol on March 20, 1999 at 06:37:26:

Do these clowns go by any other name? part of any other entity? I want to be sure that the brokers I deal with (here in FL no less) don’t ever farm a deal of mine to them, so any additional info would be helpful.
Thanks for sharing both the info and your frustration.
I had Headlands almost go that far once! But ALMOST is a big word.

If They Only Knew… - Posted by David Alexander

Posted by David Alexander on March 20, 1999 at 02:16:20:

the size of this board and the influence it has…

David Alexander

Re: 2 thumbs down—MCR Funding Florida - Posted by Laure

Posted by Laure on March 20, 1999 at 01:30:57:

Could they be sued? I am sure there are damages from not closing and sitting there for 2 hours. I would think the letter of committment should hold some responsibility legally. Things like this make me want to go for the jugular, even if it would cost me to do it. RIGHT IS RIGHT, AND WRONG IS WRONG.

Laure :slight_smile:

Left you waiting at the alter… - Posted by ScottE

Posted by ScottE on March 20, 1999 at 24:16:01:

but, the good news is that perhaps at some point those boneheads will be coming to you and asking for your business (all on your terms) and you can still tell them where to go, in case they forgot.
These guys sound like regular bankers for crying out loud!

Re: 2 thumbs down—MCR Funding Florida - Posted by SCook85

Posted by SCook85 on March 20, 1999 at 13:20:13:

Sending a bill was something that I proposed to all parties, they were somewhat open to it. So I do like the idea. I just might do it.

Also, in regards to your email about where MCR Funding is located they are in Boca Raton, FL.


Re: Don’t Forget the Broker… - Posted by SCook85

Posted by SCook85 on March 20, 1999 at 13:17:08:


Actually I was really impressed with the broker and her office. They all went to bat for the deal. The broker was on the phone the entire time, talking to everyone she could. The office manager came to the title company and started calling, while the two of them were making calls they got the others back at there office to start shopping the loan to other investors. In the 2 hours that we were there they came up with 3 lenders who agreed to do the loan in the event MCR would not fund the deal. The processor back at there office already made new copies of the package, sent all the pertinent information via fax to the new lenders in order for them to make a decision and the owner of the company got involved by calling MCR, and getting a new appraisal ordered (which they agreed to pay for) because the new lender wanted a different appraisal.
I was very impressed with the support that everyone associated with this company gave when many of the people involved didn’t need to care less if the loan closed or not. They did gain a long term customer in me.

I was aware of the fact that this was a new lender for the brokerage firm and never imagined that something like this could have happened, I will be much more skeptical in the future.


By the way is the proper spelling of renigged, reneged, or whatever. I was wondering as I was typing it. :slight_smile:

Re: 2 thumbs down—MCR Funding Florida - Posted by SCook85

Posted by SCook85 on March 20, 1999 at 13:23:42:

I asked the title company what would have happened if we would have signed the docs and funds would have been distributed (we were minutes away). They said it would have been a big mess, they would have been stopping payments on checks. I then asked what would they have done if I would have went across the street and cashed my check immediately. They replied that they would have had to sue me for the money.
I asked who would be responsible for the stop check fees, they didn’t know.
But they said that it never happened before and they couldn’t imagine the fall out of what would take place if it were to happen.


And here they are… - Posted by SteveM(MA)

Posted by SteveM(MA) on March 22, 1999 at 15:05:22:

MCR - Mortgage Capital Resource based in California:

Corporate and Executive Offices

2038 Iowa Ave. Suite 100
Riverside, CA 92507
909-275-5743 FAX

Executive Offices
#3 Hutton Centre Dr. Suite 150
Santa Ana, CA 92705
714-513-1233 FAX

The office in question:

Boca Raton, Fl.
DBA: MCR Funding
1900 Corporate Blvd, West Tower Suite #410
Boca Raton FL 33431
(877) 627-4562
(561) 998-3863
(561) 998-3086 - Fax