Legal Folks- could I get some advice?

[Deleted]

Our mortgage guy just sent over some updated documents since aware set to close next Wednesday. Some background- we first met with him back on 5/30 and from the very start, we were clear that the property was a condo. He mentioned that this would mean the rate would be very slightly higher, and that we would need to get an 'ho6' condo insurance policy. He also included a 'condo certification fee' line item on an early fee estimate that he sent us. We then met with him again in the beginning of June and he locked us in at a 4.000% interest rate and provided a Good Faith Estimate (GFE) indicating this.

Now he says that the loan was priced as a single family residence, so he can't offer 4.0 but has to offer 4.625% instead. It's about a $50 difference each month, but I'm pusses about it.

Is there's anything we can do or are we stuck?

Also I should mention that we've been working with a credit union, so despite all the praise credit unions get they still suck.

Many many thanks!

[Deleted]

But can they just change the rate like that and claim they didn't know it was a condo?

[snipsnsnails]

Ooooh, I would be super ticked!!!!

[Kit]

If you have a signed agreement, can he even legally change it at this point? I'd think not, but I don't know.

I'd definitely call and raise all sorts of hell though.

[nsl]

What SueSue said.

[wowhead]

I've been out of the business for 10 years now and my info may be outdated but if I were to venture a guess, this a is a broker and the rate increased so they can get an additional fee. Ask them what their mortgage loan premium (that's how it's listed on the HUD-1 Settlement Statement here.) Unless they have changed the rules, as long as they provide you with a new Truth in Lending 3 days prior to closing, the rate and fees can change.

Edit:  I'd still call and raise hell.  All of the brokers I've known just expect people to go with the flow.  They change shit when they think they can get away with it.

[cleo29]

I'd call and complain, but what timeline did he give you to respond? When we have refinanced (we have done it twice, once in a condo and once in a SFH), we had a time limit to lock in the rate before the offer expires or take the risk of rates going up or sometimes down.

[sunshineluv]

There are a lot of new regulations around GFE and what the lender is accountable for. I am not familiar with all the regs though.

Side note at the credit union my friend works at, she is not commision based, she is salary, and she writes lots of mortages. I would not jump to the conclusion he is trying to screw you for a commision (I mean he could be obviously). But he could be being honest.

Also, can you do a quick rate seach for condo rates, is 4% reasonable?

[Deleted]

Update! I sent a not nice email to our mortgage guy and am waiting to here back.

Luckily I know an attorney (my padre) and he said he'll draft something in the next few days if I don't get a good response from the email.

Please keep fingers crossed that things will go smoothly!

[Deleted]

I haven't posted much, but we just bought a house. I know that rates are absolutely ridiculous right now and skyrocketed over the last month. Our lock was only good for 15 days, so if we didn't close within 15 days we had to relock and redisclose - is that something that could be happening here? I was PISSED because our rate rose about 1% from mid-May to when we closed at end of June.

[Deleted]

We locked in at 4% and it should be good through the closing. Our mortgage guy is claiming he didn't know it was a condo so the 4% rate is no longer valid.