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Broker didn't lock when I told her to. Any recourse?

I told my broker to lock my rate at 4.875% on May 6, and she said she would get working on it that day. I found out last Friday (May 29th), that she hadn't locked the rate, now it is at 5.5%. Do I have any recourse?
  • June 03 2009 - Andover
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Answers (17)

If your lender did not give you a lock confirmation when you requested a lock then you have no recourse.  I t was your job to verify that the lock was confirmed in writing.  It must be a factor of the market deteriorating so quickly,  You can ask for a free refiance in writng as a future commitment
  • June 10 2009
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Profile picture for FirstTimeChump
Hi Marius - glad it worked out for you.  But I'm wondering how your lender could honor the original rate.  I thought lenders had no control over the interest rate as it's determined by feds/set by Fannie Mae, etc. Can anyone comment on that?  I am trying to accept my lender's mess-up as something beyond my control (only control I have is to take the loan somewhere else but closing in a week so can't risk it).  You are saying your lender made good on it.  Just wondering how that worked.  Can any of you lenders comment on this?
  • June 10 2009
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Profile picture for marius_35
Thanks to everyone for the advice. After making it clear I was looking elsewhere for my loan they did make good on the lock. Got the 60 day lock confirmation yesterday at 4.875.
  • June 10 2009
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Profile picture for Lindsey M. Bishop
marius_35

If I were in your shoes and this company could not offer you the same rate or some type of compensation for their employees mistake I would walk and go else - I mean how can you trust her to lock in when you tell her to now? She didn't listen to you before! She feels at this point you will just take the loan - remember you have options I would get a second opinion at least and have patience to see if rates get better.
  • June 03 2009
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You don't have any financial recourse. ... Your word against theirs.

Next time, insist you receive a copy of the Lender's Lock Confirmation. You should receive that the same day as the lock. .... Best wishes, Rudi
  • June 03 2009
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68Marilyn...Why reward this person for their incompetence.  If this is a refi, I would take the next day or two to line up a second option, go to the closing sign the papers and two minutes later rescind on the loan.  I know going through the process all over again is probably the last thing you want to do but until more people do this, idiots like this broker are going to saty in business.
  • June 03 2009
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Profile picture for marius_35
Just curious, did you find the broker on Zillow?

No I didn't. My agent (who is a friend of the family) referred me to her when I bought the house and I was very happy. For that reason I was taking my business back to her without shopping around. I figured I would bring her repeat business and since the rates were so low I was going to save money any way you sliced it so I didn't bother shopping.

It is still true that even if I were to lock at 5.5 I would save money, but I am very unhappy that she didn't lock when she said she would. I have now given her the opportunity to make it right, meanwhile I am shopping around (1st step was requesting a qoute on here). Thanks to everyone for your input.
  • June 03 2009
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Wait until rates get better and lock then.  Your rate should be closer to 5.125% to 5.250% today
  • June 03 2009
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Lenders convince people to lock because it is in the Lending institutions best interest. About 30%, of the time, it turns out to be in the Borrowers best interest also.

Dustin is right about one thing. You probably have no recourse. You could make a call to the Licensing regulator in your state. If you have recourse, a Broker should have recourse against people who walk away from locks, because rates improve. You and your mortgage Broker had no contracts between you. Legally, only proposals from both sides.
  • June 03 2009
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Wow Dustin, you just opened up a whole can of worms.

This is the risk people run when dealing with brokers versus banks. Banks typically lock you up front whereas brokers can't lock you in until they have approval from the company underwriting the loan or they can only lock 15 days from closing.

You obviously know NOTHING about brokers, you are pulling your information out of the clear blue sky.

Marius, please disregard the incorrect and inaccurate information provided by Dustin.  He has no clue what he is talking about, and is making bankers look stupid.

Brokers lock when the borrower is happy with their rate, it could be the day the loan application is taken or it can be after the appraisal is received, or it could be 3 weeks after the loan application is taken.  It's when they are happy with the rate.  Most of my clients lock the day I get the approval, which is the day I get the loan application in.  We lock for 30 days. 

If your broker screwed up and didn't lock you, it had absolutely nothing to do with anything Dustin said.  She dropped the ball is what happened, now it is on her to correct it.  Get in touch with the Managing Broker, if you have a paper trail of your agreement as to when to lock the rate, use it as leverage. Unfortunately, until a lock confirmation is provided, there is nothing to guarantee you anything.  If the company is on the up and up and is reputable, then they will make it right.

Just curious, did you find the broker on Zillow?
  • June 03 2009
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Unfortunately you don't really have any recourse if you don't have a lock confirmation in writing. This is the risk people run when dealing with brokers versus banks. Banks typically lock you up front whereas brokers can't lock you in until they have approval from the company underwriting the loan or they can only lock 15 days from closing.
  • June 03 2009
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Ask your broker one question.  Head or gut?








  • June 03 2009
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Unless they are going to make good on the original rate I would seriously consider looknig at someone else to handle your mortgage (providing you are not under a deadline of some sort).  Why reward that person for their incompetence.  My suggestion in Minnesota is to contact Sherri Sherpy.  She is on the ball and well respected on the site.


Sherri's link
  • June 03 2009
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She messed up and now she is trying to make money off of you?  With that rate, she is still trying to make commission.  That takes the cake.

There is no excuse for not locking a rate.  I would escalate to her boss and the owner of the company. 
  • June 03 2009
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Very unfortunate for you.  I'd certainly take this up the ladder to her management.

They can offset their own commisions to lower your rate.

Provide what you have available to them as eveidence.

Good Luck
  • June 03 2009
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Unfortunately the only written request I have is an e-mail string. Would this be sufficient?

Thanks
  • June 03 2009
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big problem.  attempt to access a manager, if she won't do this, present any written request to lock, if you have one, and demand a concession on their part for their failure to comply with your lock request.
  • June 03 2009
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