Profile picture for nothappyinNC

Local mortgage broker forgot to lock in rate and informed me the day of closing. Now rates are 5.5%

I was told I was locked in at 5% and cleared to close. It took 7 weeks and the day of closing they told me they forgot to lock it in. They brokered it out to Wells Fargo. Wells Fargo said "too bad". Will there be a chance rates will drop down again within a week or so? They want to float the loan until rates drop. Will the clear to close still be good then? Also, they told me not to pay June's mortgage payment. I guess I should pay it now or wait a week or so and get locked in?
  • May 28 2009 - Southport
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Answers (10)

Profile picture for SheriMoritz
Wells Fargo is correct.  It is the broker that should have locked you in.  I would ask if the broker is willing to contribute some of their commission to buy-down the rate to what they should have locked you in at.  Do you have anything in writing reflecting the date you requested to be locked in?
  • May 28 2009
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Profile picture for Chris Corica
Either they are trying to pull a bait and switch on you or they are complete idiots. Sheri is correct, have the broker credit their fee's to buy the rate down to were it was supposed to be. Their mistake and they should make it right. If they don't, I would walk away from the deal and start fresh with someone else. If you have a full loan package, the delay shouldnt be too bad. Also, it is bad advice telling you not to pay your mortgage. Make the payment, the last thing you need is for something else to go wrong and you end up with a mortgage late to boot.
  • May 28 2009
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You should go wait with another broker/bank. Rewarding bad business practices and incompetence is just as bad as missing the rate lock. Securing the rate is mortgage 101. Please don't think that brokers are bad because of this experience. Its the individual loan officer that didn't lock the rate. Your clear to close should be good for at least another month. Make your June payment.
  • May 28 2009
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Profile picture for nothappyinNC
I don't have anything in writing. The broker told me that they would take care of everything and that it was definitely locked in at 5%. They act like it's no big deal to float the loan for a few days for the mortgage rates to go down. I kept asking for a settlement statement, but never got anything  in writing. I'm really not sure what to do at this point.
  • May 28 2009
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Profile picture for Chris Corica
And what if rates go higher over the next couple days/weeks? Still no big deal? Find someone new to work with.
  • May 28 2009
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You can either go somewhere else and wait all over again or ride the market out.  It is unfortunate what happened but the clear to close will be good for awhile.  The broker knows exactly when the loan must fund by so just ask them how much time you have. 
  • May 28 2009
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Rates just etched up again. Nothing like a mid day price change for the worse. So much for floating down when rates are floating up.  To try and gain the best of solution for your efforts I would make this suggestion. Have your loan turned into to two places. Lock one in at current market for 60 days. The other lender floats you for the 60 days. Whoever has the best rate at the end of 60 days is where you close. You can go to one broker and achieve this or two banks. I would still encourage you to severe your current relationship.
  • May 28 2009
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Profile picture for natewolf
Call and ask for the broker's boss-- or the owner/president of the company. Explain the situation completely and let them know that you intend to contact the NC Commissioner of Banks.


Ask the broker's boss how much they are earning on the loan both "front end and back end", and ask that they use that commission to buy your rate down. They should not earn a commission for a loan they did not earn a commission.
  • May 28 2009
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Profile picture for CORONA NICK
Take the rate of 5.5.... my crystal ball says rates will go up and up... no going down from 5%.... the 4.5% was all a dream.
  • May 28 2009
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Profile picture for user0602081
What did you end up doing? I'm going through the same situation so I was hoping to get suggestions on how to proceed
  • June 29 2013
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