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Credit union initially never issued GFE

Hello,
I am about to close on a refinance with my credit union. I had an offer with a different bank on 11/26/2010 for a 3.5% mortgage and 45 day rate lock, no fee for lock, reasonable closing costs. I called my credit union to talk to a loan officer and I was encouraged instead to apply online, which I did and low and behold I filled out the info. and got "approved" for 3.5% loan. Printed out disclosures, but at the time I didn't know i should be looking for the GFE. and none was generated. On 11/03, in the mail came the loan papers and no GFE, but there was loan info about a $500 lock fee and it said my rate was floating. No where on the website was the fee disclosed or the fact that the rate was floating. I have credit score of 810 and my paycheck is deposited, so I called and was told they never lock the loan until they get paystubs. I told them that because of the delay in the disclosure of the fees, I missed out on the 3.5% rate at another bank where they would have locked my rate for free.
So,  I locked the higher 3.75% rate,  (they waived the fee). Two weeks later I get a GFE with 3.5% as the rate. I was so excited because (stupidly) I thought they were doing the right thing. On it, it said rate redisclosed.
10 days later (this week) I get a new GFE with the 3.75% in the loan rate part with a letter attached saying the GFE is being redisclosed because of rate error.
How should I proceed? The credit union, never sent me a GFE in a timely manner, and because of this I gave up a good rate. I have never been asked to give a rate lock fee, ever.  I made a mistake in not knowing that they were not following RESPA and trusting my credit union because of previous good experiences with them any advice?  I will probably close, but I want them to know that they have created some bad will, and that I know they haven't been following new RESPA rules.
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December 16 2010 - Shrewsbury
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Replies (5)

You better go through with it. You probably will never have the opportunity for that rate again if its a 15 or 30 year fixed rate. .... After it's funded you can raise all the hell you want.

Happy funding, Rudi
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December 16 2010
I agree that you should go thorugh with the loan. Rates have skyrocketed in the past two-three weeks and anything in the "3's" is something you need to grab onto.

However, much of what you are experiencing (and hopefully remembering) could have been explained and documented to you to insure you got what you expected, had you worked with a state licensed loan originator who by regulation HAS to provide you with what you were missing, and in a timely manner, with the very real threat of losing his license AND paying for any mistakes made. Unfortunately, not all bank and credit union loan officers to date have had to meet the same strict criteria.
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December 16 2010
just a theory, but the new GFE rules only apply to federally related mortgages. 

credit unions are often non-profiit entities and often portfolio their loans. Is it possible they're exempt? 
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December 17 2010
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Thanks for the replies! I decided to go through with it, am waiting to hear back about closing dates. I learned a lesson, I should have been more persistent the day I actually applied and demanded to speak to a live person.  And, I will probably put my concerns in a letter to the credit union after the loan closes.

And that is an interesting q about the credit unions being exempt, but it makes me wonder, why did they eventually "re disclose" on the GFE if they are exempt? I am going to check that out.
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December 18 2010
What is the name of the CU?
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December 18 2010
 
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