I have an unusual problem. My re-fi began in Jan. 09. Everything required by B of A was submitted. My closing doc’s were received on June 3, 2009. During review I discovered that they reduced my Equity lind down from 765,000 to 250,000. I found errors in their reporting. I tiold them I would accept the lower Equity line if necessary but I did not want to lose my rate and terms as well as I did not want to go through a re-appraisal and explained this.
Now they say I have not choice even though they admit the long time and their incorrect disclosure was their fault.
Any ideas?

Sorry to hear of your troubles.

We loan orignators do not generally like to make excuses for other loan originators.

However, the Obama Refi DU plus, or whatever we agree to call it, has rolled out in a herky-jerky fashion. Lenders have issued conflicting guidelines, reversed course, and have been a little hesitant to jump in with both feet, to say the least. It has been interesting AND frustrating for loan originators. Added to that, the flow thru the system has been severely hampered by high volumes, and the extra attention to details on every file.

Request that your broker provide you with a copy of the lock agreement he made with the lender (the bank), and have him show the denial from the lender. That would show he has made an effort.

Still, it IS possible that your broker did not do what he directly said he would do (lock the loan). If he did do it, he would have written proof, and should be happy to provide that proof.

If he didn’t, you may have a case.

As far as a broker or any lender honoring a lock agreement? We’ll, a lock agreement is not a commitment to lend money, and a file still has to be approved by an underwriter. They cannot guarantee that the loan will be approved.

It’s been a lot of work getting these done in the past few months!

I’m not complaining, happy to be working productively!!

Best of luck to you.

Last week broker notified me that Lender has decided not to close this loan because they do not want to participate in DuRefiPlus program (supposedly my LTV was 85%).
I offered them to put extra payment to bring the LTV < 80% and go with regular refinance process. However broker is saying lender will not close it and I would have to wait
for the rates to come down again. His explanation was as following.

“I have exhausted every avenue regarding the rate lock and have gotten a final answer that they will not close the loan because
they have decided not to fund loans tied to that program. The private investor has many concerns regarding being able to resell
the loan once it is funded and they have decided that they cannot risk having these loans in their pipeline.”

Can anyone tell me what are my rights here? Can lender or broker back-out on Locking Agreement? The rates I locked was 4.75% (30 yr. fixed) with one-time float down.
I cannot go with any other lender now because this month rates have shot up to 5.5% for 30-year fixed. I am thinking that Broker may not have hedged the rates by locking and is trying
to get out of the agreement. My locking agreement expires in first week of July.

I would really appreciate expert advise on this matter. I do not want to incur losses because lender has decided to change the mind.

Borrowers should not “trust” that their loan is locked unless they have a written lock confirmation from their lender.

Loans are on-line every day, not to the public, but to a mortgage person. Correct me if I’m wrong, but everyday a mortgage person can sit down at the computer and pull up loan programs. One day I counted sixty two loan programs that worked for a situation I was in. My lender showed me.

Now there are rates, and terms, if I understand this correctly. I don’t follow it because like the people in your example I tell my lender what I want. He tells me what he can give me.

So, to my mind every loan person gets the same products every day on a sheet. You are very correct that Loan Originators lie to win a bid. It’s happened to me many times. I send my buyers to one mortgage guy, have for over twenty years, and the buyer comes back with a “better” offer.

as i understand it my mortgage person sits down each day and looks at mortgage products. when he shops for me he looks for products that work for me that day, or two.

the only question is; do i trust him? how would i trust some one i just met, or promised me something? how do i trust you?

that’s the question.

http://mortgagefiduciaries.com/

In terms of locking a rate, depending on how the entity is licensed, the borrower has different routes to take in order to seek help with a resolution. Surely starting with the company, it’s managers and owners is always the best path. There is ALWAYS a way to honor that lock, even if it means the money will come out of the loan officer’s pocket, or from the branch office profits. I would suggest working with the company OWNER if the company manager is not responsive. Then, if that company is a member of a trade association, I would file a complaint with the trade association. For example, WAMB is promoting “lending with integrity” on their website. Just exactly how is wambie helping consumers such as this one? I would want to find out, if that particular institution was a member of wambie. http://www.wamb.org

If that company was not a member of a trade organization, then the next step would be to complain to state regulators if it is a state-licensed company.

I have listened to MANY STORIES from loan officers who played the market, didn’t lock the loan, and rates went UP.

LOs who play this game get burned very easily. LOs only get caught in this trap once and they never do it again, IF they are asked to pay the difference.

If no one holds them accountable, they will continue to play with other people’s money.

Should this topic be moved to Jillayne’s recent post re: Mortgage Brokers and Correspondents instead since this one is intended to be on lock confirmations.

Don’t get me wrong, it’s a good conversation however it’s “off topic”.