• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

crooked mortgage broker

  • Thread starter Thread starter bmcgar45
  • Start date Start date

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

B

bmcgar45

Guest
State of Iowa.

I have a uniform residential loan application, that states I'm requesting a fixed Rate. My pre-approval letter and final approval letter state the rate at 360 months. And I have a good faith estimate showing my interest rate at 360 months. However, when I arrived at closing i was told my rate was only for 3 years and is a floor rate and jumps astronomically after that.

I told them i would not sign it... but it was presented to me that i would still have to pay closing costs and that its likely the owners would feel damaged and might likely sue me for backing out. So I ended up signing with the hope that i could get out of this mess within the next 3 years.

I'm sure if i ever misrepresent something on one of these forms, I'm going to be held accountable... but after talking to 3 attorneys I'm told that nobody can make these mortgage brokers who lied to me (i writing even) accountable. It seems since i'm not actually damaged yet... its unlikely i can sue for damages.

Is it true i have to grin and bare it? Is there a governing organization for mortgage brokers, that i can complain too. Anything i can do to stop this kind of thing from happening in the future? I find it hard to believe i have no recourse and their is no governing body to punish brokers doing this kind of business.

Any advice?
 


H

HUD-1

Member
Some thoughts: Does your Truth in Lending Disclosure Statement have the box under "Variable Rate Feature" checked? If so, you have an uphill battle. I think that if your sales contract had a contingency of getting a 30 year fixed mortgage at 6.25% and you couldn't qualify for that, you could have backed out using the lender's rejection letter. They got the bright idea of getting you into an ARM, which you perhaps qualify for because you start out at a lower rate. (and may continue with a lower rate than the fixed. Only time will tell) Assuming that was disclosed in the TIL, you went along with the deal and are benefitting by qualifying for a mortgage and paying a lower rate than the 30 year fixed. (If your contingency in your contract was not specific, you put yourself in a difficult position.) In any event, you can complain to the State Department of Banking. http://www.idob.state.ia.us/
 
B

bmcgar45

Guest
disclosure statement

Unfortunately,when i received the disclosure statement from the lending institution I called my broker because nothing on it looked right.. Not the address.. %, loan amount, and infact it was broken down as an ARM. When I called to complain about all those things, my broker told me that it doesn't matter, that they were just getting my name into the computer and that likely nothing on that form is correct and i should just tear it up and throw it away. Frankly, i was glad to hear that, so i tore it up as he suggested.

I didn't find out till a few days after closing how important that document really is.

Thanks for the info. on where to complain.
 
W

wanabath

Junior Member
bmcgar45 said:
State of Iowa.

but it was presented to me that i would still have to pay closing costs and that its likely the owners would feel damaged and might likely sue me for backing out. So I ended up signing with the hope that i could get out of this mess within the next 3 years.

Any advice?
Click to expand...

I can not see you still having to pay closing costs, or the seller suing you, it is not your fault. It sounds like used car salesman tactics to get the close. I hate this because I am a broker and have to compete with sob's like this that lie about rates. Turn the broker in to the state mortgage dept. Here is their number 1-515-281-4014.
 
B

bmcgar45

Guest
thank you

Thanks for your post... an attorney recommend i send them a letter seeing if they would settle with me. At the time of closing, the offered to try to refinance and they would waive their origination fee, but that is only a fraction of the closing costs so i'm not share that is good settlement. I will see how they respond to my letter and if I get nowhere i will follow thru on complaints to the organization(s) you suggest. thank you.
 
H

HomeGuru

Senior Member
bmcgar45 said:
Thanks for your post... an attorney recommend i send them a letter seeing if they would settle with me. At the time of closing, the offered to try to refinance and they would waive their origination fee, but that is only a fraction of the closing costs so i'm not share that is good settlement. I will see how they respond to my letter and if I get nowhere i will follow thru on complaints to the organization(s) you suggest. thank you.
Click to expand...


**A: also file a complaint with the state mortgage broker's association.
 
B

bmcgar45

Guest
??

I'm not sure I understand that last question. If its about refinancing, i can refinance without penalty.
 
S

Souix

Senior Member
bmcgar45 said:
I'm not sure I understand that last question. If its about refinancing, i can refinance without penalty.
Click to expand...

***No you never answered HUD1's question. What was the financing contingency written on your sales agreement?***
 
B

bmcgar45

Guest
agreement

The agreement is based on obtaining a conventional loan without PMI at 7% or lower for 30 years.

The mortgage broker had asked me to call him when i was signing and offer agreement. So the agent and I did call him.

While on the phone with the broker we discussed an ARM... but the agent and I both told him that I wanted to be in the house for at least 7 year. I told him i would be willing to look at an ARM... if he found one at 7 years and it reduced my interest rate.

brian
 
H

HomeGuru

Senior Member
bmcgar45 said:
The agreement is based on obtaining a conventional loan without PMI at 7% or lower for 30 years.

The mortgage broker had asked me to call him when i was signing and offer agreement. So the agent and I did call him.

While on the phone with the broker we discussed an ARM... but the agent and I both told him that I wanted to be in the house for at least 7 year. I told him i would be willing to look at an ARM... if he found one at 7 years and it reduced my interest rate.

brian
Click to expand...

**A: don't you mean if you found one at 7% (not 7 years)
 
B

bmcgar45

Guest
No.... i told him i would consider a 7 year ARM, cause that would be the minimum amount of time i would want to stay in the house.
 
You must log in or register to reply here.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top