Real Estate Home Mortgages/Refinance Closing Costs- extending rate lock
QUESTION: We are in the process of refinancing and now there are problems. The lender promised us a significant bank credit to offset closing costs. Now, the agent is telling us she is "trying" to get the credit and we've had to extend our rate lock due to them which is also costing money.
The appraisal is delaying the loan --it was low but she assured us it wouldn't affect the closing and we should approve it. We did. Our equity in our home is at 36% even with this low appraisal. She then said our appraisal was pulled out by a random computer process and would be reviewed and therefore delay the closing -- I never heard of something like this!
They are charging us money to extend the rate, even though it is their fault -- but she never sent anything in writing -- she said she thought it was $100/day but not to worry, the bank credit would cover it.
We also gave up our equity line so we could close on time, rather than subordinate it which she said would extend closing. It is fully paid off but we wanted to keep the credit line but gave it up under her advice so we could close on time.
We are now 2 weeks after our original closing, have no estimates of closing costs in writing except the original which doesn't include the rate lock extension (which I have asked for). She is saying she is "trying" to get this original bank credit of $3,200 which she promised at the beginning and I think is written in our GFE but not sure if it's the official Housing Dept GFE.
She also has lost papers which I've sent and been hard to reach.
I feel this is a "bait and switch" because their rate was very low and now they want to charge us more upfrong -- rate is 3.2% no points. Can you advise what recourse I have and if this is legitimate.
ANSWER: The loan officer should be able to provide a clear answer about the amount of the credit. That amount was locked in with the rate lock.
As for extending the lock,I usually build in a little padding for issues like this so I can eat it.... I don't know what their policy is.
Appraisal review never happens at a good time. But it is a fact of life with loans now.
The equity line has to be closed per guidelines. I know people don't like to hear that but it does.
Bait & Switch? Probably not.... probably just an incompetent loan officer.
Call their boss and complain. People like this give us lenders a bad name.
There should have been a document in your disclosures that tell who you should complain to.... There is one in my loan packages. In Texas, you can file a formal complaint with the Texas Savings & Loan Dept.
The national registry consumer access is http://www.nmlsconsumeraccess.org/
You look up the loan officer and click on their name and you will find a complaint button.
Let me know how that goes. This is a new system and I don't know much about it.
---------- FOLLOW-UP ----------
QUESTION: Thanks so much for your time.....I'm trying to find her boss and talk to him today.... But, do I have any recourse if they don't honor the bank credit?
If you sign the loan docs.... Really no recourse. Although they might be in violation of some compliance rule. And you should file a complaint if things are different than promised.
No way for me to advise you because I don't know what they are doing on the back end over there.
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