zevo Posted February 7, 2014 Share Posted February 7, 2014 So basically I have been involved with a mortgage refinance with a local bank for roughly 1.5 years.....I should say the process started over 1.5 years ago....about 10 months ago we were all set at the lawyers office to sign the refinance....upon reviewing the loan I noticed the mortgage rate was wrong....I notified the lawyer at this closing and he then contacted my loan officer at the bank and confirmed it was not to correct rate....my loan officer said it was her mistake and that she would fix it....well I continue to wait patiently and I contact in a biweekly basis and she says that she is working on it and that she needs to meet with the right people.. Yadda yadda yadda....I have the original loan agreement at we signed that shows the rate we were supposed to get and I have all emails confirming that the loan officer admitted the mistake....recently the loan officer has become ill and is currently out of work. What are my rights? Do I have a case against the bank to sue for the rate? I have been put through 2 bank appraisals ( one at my cost...one at their cost....3 credit pulls....3 sets of documents showing our financial status and all this time have been paying our current rate....this has been the most ridiculous process I have ever been apart of....should I seek a lawyer? Link to comment Share on other sites More sharing options...
BringBackFergy Posted February 7, 2014 Share Posted February 7, 2014 When you say "loan officer at the bank" is it a direct loan with a bank or a "mortgage broker"?? Link to comment Share on other sites More sharing options...
zevo Posted February 7, 2014 Author Share Posted February 7, 2014 When you say "loan officer at the bank" is it a direct loan with a bank or a "mortgage broker"?? I guess you could say the exact title is senior mortgage consultant that is employed by the bank. Link to comment Share on other sites More sharing options...
BringBackFergy Posted February 7, 2014 Share Posted February 7, 2014 I guess you could say the exact title is senior mortgage consultant that is employed by the bank. Under the latest RESPA regulations borrowers have many more rights than they used to. You really need to go to the bank in person (unless it isn't a local bank) and talk to the manager or supervisor (the head honcho). I say that because a lot of times the mortgage consultants/officers get swamped and your file (if it doesn't get closed) gets pushed to the side while they try and resolve your issue. Unfortunately, during the height of the refinance boom (I saw some rates down to 2.9 %) many of those files got lost in the shuffle. Rather than emailing the officer and waiting for a response, you should talk to a supervisor face to face and explain that you are now losing out on almost 3 percentage points. As far as a lawsuit against the bank goes, I am unsure if RESPA allows you to collect attorney fees so be prepared to shell out money to an attorney to commence an action. Link to comment Share on other sites More sharing options...
Maury Ballstein Posted February 7, 2014 Share Posted February 7, 2014 I was a mortgage broker for 5 or so years. Something shady is goin on it seems. The actual broker could have made an extra thousand or so by baiting and switching you which is highly illegal especially with all the RESPA rules. They probably won't be able to get you the rate anymore as they have risen. Crappy all around situation. Link to comment Share on other sites More sharing options...
Chef Jim Posted February 7, 2014 Share Posted February 7, 2014 What was the rate on the loan docs you signed? If you singed it with the higher rate you're stuck with it. Link to comment Share on other sites More sharing options...
zevo Posted February 7, 2014 Author Share Posted February 7, 2014 The rate is signed and agreed to was 3.25% through the approval process....the rate on the docs at closing were 3.5%... I refused to sign as the rate was incorrect.....I have all my docs showing the agreed rate of 3.25% and all emails stating the mistake and that it will be fixed....right now I'm still with my current mortgage rate of 4.375 which is with the same bank.... Link to comment Share on other sites More sharing options...
Chef Jim Posted February 7, 2014 Share Posted February 7, 2014 How long was the rate lock for? Link to comment Share on other sites More sharing options...
zevo Posted February 7, 2014 Author Share Posted February 7, 2014 That rate lock was a year ago....the mortgage consultant admitted the mistake and guaranteed she would fix it. I haven't been told it would not be fixed...but I'm tired of waiting....hence looking for legal advice..... Link to comment Share on other sites More sharing options...
Maury Ballstein Posted February 7, 2014 Share Posted February 7, 2014 When they said they can fix it what they meant is hopefully the rates will improve and we will be able to honor that rate. When the rate never improved it sounded like they just blew you off. I had a coworker who had this issue before. Why the 2 appraisals ? Sounds like the 30 day (standard term) lock ran out over the length of time to get whatever appraisal issues you had straightened out. The banker/broker should have extended the lock which would have increased your closing costs but kept the 3.25 rate that you expected. Link to comment Share on other sites More sharing options...
zevo Posted February 7, 2014 Author Share Posted February 7, 2014 I don't feel like I'm being blown off as I get responses quickly from the mortgage consultant....if I had signed and agreed to a rate and said rate was different upon closing and I have documentation that admitted their error...I don't see why I couldn't legally be able to sue for the rate or at least have a lawyer draw up a written letter to make the bank honor the rate that I had agreed to. Link to comment Share on other sites More sharing options...
Maury Ballstein Posted February 7, 2014 Share Posted February 7, 2014 Sounds like a case to me. GL. Link to comment Share on other sites More sharing options...
KD in CA Posted February 7, 2014 Share Posted February 7, 2014 I would have long since moved on to another lawyer and another mortgage company. How long are you going to let them string you along? Link to comment Share on other sites More sharing options...
zevo Posted February 7, 2014 Author Share Posted February 7, 2014 It is a good rate....that I locked a year ago and I want what I signed for...I'm not desperate for a refinance as I currently have a 4.375 rate...but I want what I agreed to...I'm not giving up... Link to comment Share on other sites More sharing options...
Chef Jim Posted February 8, 2014 Share Posted February 8, 2014 It is a good rate....that I locked a year ago and I want what I signed for...I'm not desperate for a refinance as I currently have a 4.375 rate...but I want what I agreed to...I'm not giving up... Once again how long was that lock for? They don't lock them infinitely. Link to comment Share on other sites More sharing options...
zevo Posted February 8, 2014 Author Share Posted February 8, 2014 Once again how long was that lock for? They don't lock them infinitely. I stated in the previous post that obviously the lock has expired...you are missing the point...error occurred by no fault of mine...it's on them...and this is where I'm looking for any legal input. Link to comment Share on other sites More sharing options...
Chef Jim Posted February 8, 2014 Share Posted February 8, 2014 I stated in the previous post that obviously the lock has expired...you are missing the point...error occurred by no fault of mine...it's on them...and this is where I'm looking for any legal input. How is it on them? The lock expired. Link to comment Share on other sites More sharing options...
zevo Posted February 8, 2014 Author Share Posted February 8, 2014 How is it on them? The lock expired. Maybe through the admittance by the mortgage consultant employed by the bank that she screwed up the rate and it was on her and that she would fix it Link to comment Share on other sites More sharing options...
Chef Jim Posted February 8, 2014 Share Posted February 8, 2014 Maybe through the admittance by the mortgage consultant employed by the bank that she screwed up the rate and it was on her and that she would fix it They can admit it all they want but if the contract you signed said the lock was good for x number of days and that time had lapsed when you signed the final loan docs I'm not sure you have a case. Their ignorance of the contract does not necessarily make them in the wrong. Another question is they admitted they screwed up. In what way did they screw up? Link to comment Share on other sites More sharing options...
zevo Posted February 8, 2014 Author Share Posted February 8, 2014 They can admit it all they want but if the contract you signed said the lock was good for x number of days and that time had lapsed when you signed the final loan docs I'm not sure you have a case. Their ignorance of the contract does not necessarily make them in the wrong. Another question is they admitted they screwed up. In what way did they screw up? I didn't sign the final loan documents because of the incorrect rate....I'm not sure if I can be anymore clear....I sat down at closing....saw the rate was 3.5 not 3.25 which it was supposed to be....alerted the closing lawyer of the error...he contacted my mortgage consultant....she confirmed the error....said she will fix it.....11 months later still waiting for the fix but am repeatedly told she is working on it and it will happen Link to comment Share on other sites More sharing options...
Recommended Posts