Refinancing question - broker misled us (mortgage broker, credit, loan)

[clomomie09]

I have a question hoping someone can help answer.

We just recently refinanced our 30 year mortgage. When we first spoke with our mortgage broker, he had promised (on phone and via email) that there were no broker fees and "there will be a credit of $xxx guaranteed". This was also listed on our mortgage application fee. During the appraisal process, we were then told we were being charged an additional $xxx amount due to high value of our property which we were told he would also credit us back.

When we were finally ready to close and he sent us the HUD-1 settlement statement, I noticed that 1) the broker credit was less than what he originally promised 2) the adjusted origination charges were higher than what was quoted on the GFE 3) no credit for the high value appraisal cost.

I spoke with him and although he adjusted the broker credit amount back to what was originally discussed, he could not give us the other credits because he "lost a substantial amount of money on the loan because of the bank and since they are unable to pick up any of this money, I cannot pass anything more along to you.".

What I find horribly dishonest is that he not only did not disclose to us that he tried to jip us of the promised credits - assumed that we would just sign on the dot and not notice - but he is going back on his written word that we would be getting back the credit. Furthermore, whether or not he lost money on the loan should not be our problem. He's the mortgage expert, he chose to make the loan, just because rates are now against him, that should not be passed on to us. We locked in with him because of the promised no broker fees and now he is going back on his word.

So my question is - is there anything I can do? Is there any law that he broke? If not, should we file a BBB complaint and does that accomplish anything?

[joeymarine]

Originally Posted by clomomie09

I have a question hoping someone can help answer.

We just recently refinanced our 30 year mortgage. When we first spoke with our mortgage broker, he had promised (on phone and via email) that there were no broker fees and "there will be a credit of $xxx guaranteed". This was also listed on our mortgage application fee. During the appraisal process, we were then told we were being charged an additional $xxx amount due to high value of our property which we were told he would also credit us back.

When we were finally ready to close and he sent us the HUD-1 settlement statement, I noticed that 1) the broker credit was less than what he originally promised 2) the adjusted origination charges were higher than what was quoted on the GFE 3) no credit for the high value appraisal cost.

I spoke with him and although he adjusted the broker credit amount back to what was originally discussed, he could not give us the other credits because he "lost a substantial amount of money on the loan because of the bank and since they are unable to pick up any of this money, I cannot pass anything more along to you.".

What I find horribly dishonest is that he not only did not disclose to us that he tried to jip us of the promised credits - assumed that we would just sign on the dot and not notice - but he is going back on his written word that we would be getting back the credit. Furthermore, whether or not he lost money on the loan should not be our problem. He's the mortgage expert, he chose to make the loan, just because rates are now against him, that should not be passed on to us. We locked in with him because of the promised no broker fees and now he is going back on his word.

So my question is - is there anything I can do? Is there any law that he broke? If not, should we file a BBB complaint and does that accomplish anything?

The rules changed the beginning of the year for GFE's. I do know that if any number change on a GFE after you have received your initial one, there is supposed to be a "waiting period" before you can close so the borrower has the opportunity to review it and make a clear headed decision.

Your answer 'should be' in the Good Faith Estimate Instructions. If not, you can always contact HUD and they should be able to give you a better idea.

The reason they have to provide you with this ahead of time is so you can decide not to close on the loan if you feel you are being given the "bait and switch" and switch to a different loan professional (or unprofessional).

Best of luck to you!

~Joey

[KMRa]

Originally Posted by clomomie09

I have a question hoping someone can help answer.

We just recently refinanced our 30 year mortgage. When we first spoke with our mortgage broker, he had promised (on phone and via email) that there were no broker fees and "there will be a credit of $xxx guaranteed". This was also listed on our mortgage application fee. During the appraisal process, we were then told we were being charged an additional $xxx amount due to high value of our property which we were told he would also credit us back.

When we were finally ready to close and he sent us the HUD-1 settlement statement, I noticed that 1) the broker credit was less than what he originally promised 2) the adjusted origination charges were higher than what was quoted on the GFE 3) no credit for the high value appraisal cost.

I spoke with him and although he adjusted the broker credit amount back to what was originally discussed, he could not give us the other credits because he "lost a substantial amount of money on the loan because of the bank and since they are unable to pick up any of this money, I cannot pass anything more along to you.".

What I find horribly dishonest is that he not only did not disclose to us that he tried to jip us of the promised credits - assumed that we would just sign on the dot and not notice - but he is going back on his written word that we would be getting back the credit. Furthermore, whether or not he lost money on the loan should not be our problem. He's the mortgage expert, he chose to make the loan, just because rates are now against him, that should not be passed on to us. We locked in with him because of the promised no broker fees and now he is going back on his word.

So my question is - is there anything I can do? Is there any law that he broke? If not, should we file a BBB complaint and does that accomplish anything?

Contact the owner/manager/corporate office and discuss your concerns with them.

A reputable company will protect it's reputation if you point out shortcomings. Sometimes there is a misunderstanding that can be corrected or, at the very least, clarified. Any broker who blames "the bank", without clarifying, is doing you a disservice and is suspect in my experience.

Do not close on this mortgage if you feel uncomfortable with the terms. Once you close, you have absolutely no leverage and very little recourse.

If you have to chalk up any prepaid fees to experience, so be it.