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Something fishy-can my mortgage broker relock me without a signature?

This was the only GFE and rate that was ever disclosed to me and that I agreed to, showed a 9,835 origination charge and a credit of $7790.19. Before the rate lock expired I inquired as to how changing closing date (not my fault) would affect the interest rate and the fees, no response was ever given. I inquired again, the day after the rate lock ended.  My email was returned on Dec 2 and was told mortgage broker would be available to talk that weekend. My call was returned and I was told that I had been relocked at the same rate. No new GFE was provided to me, nor was it disclosed that any of the closing credits had changed. However, at closing, a reduced credit of $7,321.13 was indicated, instead of the original $7790.19 ($7790.19 credit versus a $7321.13 credit difference of $469.06). I had my mortgage broker on the phone, who blamed the lender for this change and called the lender and they blamed the mortgage broker. I asked the mortgage broker to refund me the difference of $469 and she agreed, however it has been a month and I have not been refunded. I got an email today stating that a check was in the mail, but we will see if it actually comes.
My question is, why didn't I get an updated GFE? Can I be re-locked or committed to a rate and charges with just being told over the phone that nothing changed?
Who is responsible for getting me the HUD-1 before settlement? I only got it 1 hour before from my real estate agent, not the closing agent or the mortgage broker.
Why are charges like surveys not disclosed? Is there anything else that sounds fishy about this transaction. I am filing a complaint for poor service with this mortgage broker, but other than that is there anything unethical with not providing me a GFE or relocking me before I agreed to it?
  • January 19 2012 - Washington
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Answers (14)

Also it is my understanding that after a rate change there is a 3 day waiting period before closing can occur. 
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applies only to an increase in APR by 0.125 (fixed) or 0.250 (ARMs).

A change in the credit will rarely impact the APR.
  • January 21 2012
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It's already closed Cindy.
  • January 21 2012
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While I am not a lender I believe that before your loan will be cleared to close buy underwriting your signature will be required.  Also it is my understanding that after a rate change there is a 3 day waiting period before closing can occur.  This has been my recent experience with this issue.

Cindy Schlee
  • January 21 2012
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The whole idea that the yield spread is the borrower's money is still, and always will be, retarded. Pre-Dodd-Frank, a decent Broker was highly likely to just eat the cost of extending the lock, as long as the delay was for a day or two, and wasn't due to obvious negligence of the Borrower. Now, it's a damn federal crime for him to "just eat it". The flexibility to react to the common changes in RE transaction timelines, that are in-freakin-evitable, has been not only been eliminated, but criminalized. It's ridiculous.
  • January 21 2012
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poll, not like pole dance... what Mark Twain said... http://www.twainquotes.com/Spelling.html
  • January 21 2012
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It would be interesting to see the results of a pole asking people if they would formally complain about getting money back in any situation:]
One has to wonder why a Loan Originator can not refund money back to a borrower...it's a free country, what's so outrageous about doing a free loan? If my doctor wants to take my tonsils out for free, no one is stopping him. If my attorney wants to represent me...and so on ?  I have never heard one negative media story about a broker etc. 'giving back money'.   Does giving the borrower back a few hundred dollars fall in the same light as Predatory Lending? If people are getting cheap or free anything, does that not peg the demand down and as a result the cost decreases? Not the opposite...wouldn't that help ease up the cost of RE$?   I'm not so sure.
 

R09 - Fishy seems about right.





  • January 21 2012
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What you describe is a clear violation of RESPA (possibly 2 if the loan officer agreed to pay you back).


From HUD:

"You should send a written complaint describing the practice that you believe violates RESPA. The complaint should include the names, addresses and phone numbers of the alleged violators. It is preferred that you include your name and phone number in case an investigator wishes to ask further questions. You may request confidentiality. Send the complaint to:

U.S. Department of HUD
Office of RESPA and Interstate Land Sales
451 7th Street, SW, Room 9154 
Washington, DC 20410

You may also wish to send a complaint to State and other Federal agencies that have the responsibility for regulating the settlement providers engaged in the referenced practice."

And if you found the lender on Zillow, please review them negatively and post the factual circumstances of their actions as a warning to others.

Actually, even if you didn't find them on Zillow, but they are registered on Zillow, please review them. Search the lender directory for their names and take appropriate action.

  • January 20 2012
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Just wondering, why did the closing date change? How long was it delayed, a day, or two?

The complaint would go to whatever department of your DC Gov't that regulates whatever kind of Lender you used. Was it a Broker? Mortgage Banker? Sometimes it's hard to be sure which kind of entity you're dealing with. Sounds like it could be either of these two.
  • January 20 2012
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Whom should I file a complaint with? My mortgage broker doesn't care and won't even return my phone calls.
  • January 20 2012
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You should certainly file a complaint for not being provided an updated GFE prior to closing.   I would bypass the broker and speak to the bank that originated the loan, find out what date did this "change of circumstance" occur and why were you not disclosed to.

From the numbers you indicate, it appears near certain the broker did a "Lender Paid Transaction".   If this is the case, if they send you any check for any amount outside of the transaction, that is a major violation from them and completely illegal for them to do.

As to who is to blame.   The re-disclosed GFE depends on the lender.  Some lenders will be certain to re-disclose directly to you.  Others allow the broker to re-disclose and the broker must indicate as part of the change that it was indeed disclosed to you.   

As Kelly mentioned, the HUD will typically come from escrow and if not otherwise requested by you, won't be seen until the actual closing.   
  • January 19 2012
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In California the HUD comes from escrow and should be with the loan papers you sign at closing - if you want it sooner -then you can contact escrow/title or your broker/lender  and they should provide it very quickly-  re: the GFE - when you signed your loan papers a revised GFE should have been with that paperwork (the lenders I work with provide it) - If your lock expired - a re-lock fee could take from your credit - unfortunately this is a very common occurrence - due to the lender having too many loans - your loan taking longer than anticipated.  From what I read on your post - I don't see anything unethical.. just back luck and poor communication from the broker -   I hope you get your  check very soon

  • January 19 2012
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Your Lender/Broker should have provided to you.  I have to approve mine before loan documents are sent out.  Once documents have been sent out I send a copy to my client and go over the HUD.
  • January 19 2012
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Who should have provided the HUD-1? All parties are blaming the other, i.e. agent, broker, settlement agent.
  • January 19 2012
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Normally, when there is a change in fees and if it is going to affect the truth in lending a change of circumstance is required and at that point a new Good Faith Estimate/Truth in Lending is required.  Now, I probably would have discussed with my client that there is going to be a difference in lender credit due to worse pricing.  This means that your interest rate was going to expire and to keep the same rate the lender credit must of been different. 

It should have been discussed!  I would go down to their office and ask for that refund if they told you that you were getting a refund. 

The HUD-1 should have been provided and discussed with you.
  • January 19 2012
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