Expert: Lori Frankfort - 2/2/2009

Question
The loan I got had approx .5 points buy down, and this was
on the good faith estimate. When they gave us the final
estimate, the point fees weren't there and we didn't really
notice. At the signing they were again not there on the HUD
statement. We signed everything and expected to fund on
Friday. Friday afternoon we called to see how things had
gone and they said they didn't fund because the points were
missing and they were going to send us new documents to
sign, without a notary, that would add in the fees.

This seems sketchy to me. From what I've read, the HUD
should be final. Plus, they didn't notify us of the
addition of fees until after our right to cancel had
expired. This seems a bit unethical at the least.

Can you tell me if they are allowed to make these changes
after the signing?

Answer
If the .5 buy down was on the good faith estimate and you signed it, I believe it was a legitimate error that it didn't end up on the closing documents.  It's a little strange that they don't require a notary, and this could be a RESPA violation, you should ask escrow about it.  

Either way, the fact that you knew about the buy down in advance makes it ethical, and at this point if you don't accept the buy down you could lose the loan, and they wouldn't be responsible.  This is only my opinion, you should seek the advice of a legal expert if you have further concerns.

Best,
Lori Frankfort