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We closed on our re-finance loan and signed the HUD form and agreed to all fees and payments to be made on various creditors. A week and a half later, we finally get the final HUD and checks for the creditors they are paying off. One of the creditors was not on the final HUD. We called our broker and he told us they had to adjust some things to get the funding and the creditor that was dropped had to be done to get the loan funded. We did not sign a HUD dropping the other creditor. Can they legally change the HUD without our signatures and drop the creditor to adjust other figures?
Since a payoff doesn't affect the APR, a lender can make that change without you having to re-sign documentation. Changing the HUD after it's signed happens quite often in the western US on purchases - more/less days of interest, a change in the amount of homeowners insurance premium due, a seller credit that needs to be increased/decreased, etc. Happens on refinances all over the US too. Dropping a creditor seems pretty major, however the last time that happened in a situation I was in the lender was fine requiring the borrower to re-sign. They just re-approved them in underwriting, provided the escrow agent new settlement instructions, and removed a payoff and converted it to cash back to the client.
What happened to the moeny that was supposed to pay off that creditor though? Did you end up getting cash back? Did they underestimate how much the payoffs or closing costs were going to total up to? I wonder why they had to change.
We called the manager and he told us they had to adjust the figures to get the loan funded. He mentioned that our actual broker even ended up taking a 500 cut in pay on the deal. BUT, if you look at the figures, the amount that was supposed to be paid to the creditor, went back to the broker. The original credit was 1340 and is now 333.83. There are some other minor adjustments and even a additional interest because they took a week and a half to fund the loan after closing.
We closed on our re-finance loan and signed the HUD form and agreed to all fees and payments to be made on various creditors. A week and a half later, we finally get the final HUD and checks for the creditors they are paying off. One of the creditors was not on the final HUD. We called our broker and he told us they had to adjust some things to get the funding and the creditor that was dropped had to be done to get the loan funded. We did not sign a HUD dropping the other creditor. Can they legally change the HUD without our signatures and drop the creditor to adjust other figures?
if you look through your disclosures, one of them gives the title/closing company authorization to make changes/fixes for events like that.
So are you telling me that my broker lied to me about the credit and then took it back after closing and there is nothing I can do about it?
if he lost commission, then there is no credit to receive. it would have came out of the commission. i have a hard time believe that both the broker, the bank and the title company missed the 2nd lien till last minute. i would ask for the updated HUD and compare.
They sent us the final HUD and it shows that the broker credit to borrower was reduced because they subtracted one of the creditors they were suppose to have paid. I am trying to find out if this is legal. Can they remove a agreed creditor from the HUD that we signed to reimburse themselves of the broker credit to borrower?
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They kept it
