Mortgage Company Actions

What is the name of your state? NY

We placed an offer on a house the 5th of May and our mortgage company said that they stopped offering FHA loans as of May 1st, my loan officer said he was going to see if he can get an extension for us. 20 minutes later he called us back and said we are all set, Max 3% we would have to pay at closing, closing costs can be rolled over...etc. Well 3 weeks later, the last week of May, we get a call from our Realtor. After offer has been approved, appraisal has been done, it has gone to underwriting...etc. Alot of work has already been done. Our Realtor asked if we knew that we are not getting an FHA Mortgage, we are getting a conventional mortgage. 5% due at closing and closing costs can not be rolled over. Our Mortgage company never even called us about this change.

At this point we already have a lot of money invested, we spoke with the supervisor and told him that we told his loan officer that we wanted to put as little down as possible and that the loan officer told the realtor that he got us 100% conventional mortgage. And the loan officer never communicated any of these changes to us, we always found out later by our realtor. The supervisor suggested that we try to get a sellers concession. We could get 6% sellers concession. My realtor worked with the new loan officer because the old one got fired. My realtor sent the sellers concession to be signed by the sellers. 3 days later they again change the what we were told and say they can only do 3% sellers concession. Again not informing us. My realtor again sends out a new sellers concession to get signed.

We have had a lot of situations where the Mortgage company is not communicating changes that arise to us. We are first time home buyers and were looking to benefit from FHA and having to put as little down as possible. My questions is: Is it legal what they are doing. We are not at a point where it is too late to switch mortgage companies, we have too much invested. We are suffering because they did not communicate key changes to our mortgage loan. We could have payed max 3% ($1800) with FHA and now because of their ways we are paying $8500 at closing with Conventional.

Any comments helpful.

Thanks,

Check your federal truth in lending disclosure statement. Which you should have got when the loan was conceived.
Does it have an FHA /VA # on it.
What is the amount financed?
Does that equal the FHA or Conventional loan values down?

The bad news is that if they are no longer offering FHA loans its probably because FHA said they could not. Expelled from the program for some reason.

The good news is that you have recourse if the FTILDS is not the truth. AND if you were approved through FHA loan you will be approved with other mortgage companies.
Go with a differant company! Even if you have to eat the appraisal and survey costs which you may not. Take them to the next guy with you Maybe he'll take em. You paid for it they belong to you! Inspection not required but get one if you have not already. Did you pay for the FHA inspection? They are two different things.Title policy should not have been paid yet but if so see if you can get it.

Check your HUD1 statement for third party vendors that are to be paid by buyer. FHA limits the costs than can be paid by the buyer.

Important! Compare your APR rates which may be 5.625% if your loan rate is 5% The lower APR less costs to you. Not down but actual closing costs. Where the mortgage companies make there points etc. Some of these scam artists will try to charge you $300 for credit report. WRONG dont pay more than $75

Make that realtor help you out most likely he is not a buyers agent and is therefore being paid by the sellers broker and you not contracted to him. They split 6% 3 each. Immediate conflict of interest! Tell him you can take that 3% "COMMISSION" (another word for interest and thus a conflict thereof not in your favor) to another agent! He could even take a 1% hit to help with your down by extending less costs to the owner whala owner contributes 1% to your down payment. Now your at 4% down.

Hope that helps. Im not a lawyer or HomeGuru but i did much the same with my FHA loan. I hate when professionals take advantage of lay people in these complicated matters. Education is your best defense.
+ go to hud web site and learn more.

[Souix]

Originally posted by aghazle
What is the name of your state? NY

We placed an offer on a house the 5th of May and our mortgage company said that they stopped offering FHA loans as of May 1st, my loan officer said he was going to see if he can get an extension for us. 20 minutes later he called us back and said we are all set, Max 3% we would have to pay at closing, closing costs can be rolled over...etc. Well 3 weeks later, the last week of May, we get a call from our Realtor. After offer has been approved, appraisal has been done, it has gone to underwriting...etc. Alot of work has already been done. Our Realtor asked if we knew that we are not getting an FHA Mortgage, we are getting a conventional mortgage. 5% due at closing and closing costs can not be rolled over. Our Mortgage company never even called us about this change.

At this point we already have a lot of money invested, we spoke with the supervisor and told him that we told his loan officer that we wanted to put as little down as possible and that the loan officer told the realtor that he got us 100% conventional mortgage. And the loan officer never communicated any of these changes to us, we always found out later by our realtor. The supervisor suggested that we try to get a sellers concession. We could get 6% sellers concession. My realtor worked with the new loan officer because the old one got fired. My realtor sent the sellers concession to be signed by the sellers. 3 days later they again change the what we were told and say they can only do 3% sellers concession. Again not informing us. My realtor again sends out a new sellers concession to get signed.

We have had a lot of situations where the Mortgage company is not communicating changes that arise to us. We are first time home buyers and were looking to benefit from FHA and having to put as little down as possible. My questions is: Is it legal what they are doing. We are not at a point where it is too late to switch mortgage companies, we have too much invested. We are suffering because they did not communicate key changes to our mortgage loan. We could have payed max 3% ($1800) with FHA and now because of their ways we are paying $8500 at closing with Conventional.

Any comments helpful.

Thanks,

***Has your appraisal been done yet? If not, go to another mortgage company. If the appraisal has been done, get them to send you a Good Faith Estimate right away. In fact, this should have been done before the offer was even written. I never ever write an offer for my clients without them first seeing the Good Faith Estimate. Now....I thought that your agent had negotiated with the sellers that they were paying up to 3% of your closing costs. Did the sellers accept this? Regardless, you need that Good Faith Estimate to see whats what. Are you sure you are having to bring in $8500 on top of the 3% the seller is paying? Seems awfully high.***

[Souix]

[Make that realtor help you out most likely he is not a buyers agent and is therefore being paid by the sellers broker and you not contracted to him. They split 6% 3 each. Immediate conflict of interest! Tell him you can take that 3% "COMMISSION" (another word for interest and thus a conflict thereof not in your favor) to another agent! He could even take a 1% hit to help with your down by extending less costs to the owner whala owner contributes 1% to your down payment. Now your at 4% down.


***Sir, it is very obvious that you do not know how realtors get paid, nor do you know what is deemed a conflict of interest and what is not. Please, if you don't know what you are talking about, refrain from posting things like this. The writer, is not concerned with his realtor at this point, only the loan.***


Hope that helps. Im not a lawyer or HomeGuru but i did much the same with my FHA loan. I hate when professionals take advantage of lay people in these complicated matters. Education is your best defense.
+ go to hud web site and learn more. [/b][/quote]

***Take your own advice***

Then please madam real estate broker, explain the process for us all.

Do you read your own disclaimers you make your buyers sign?

What vested interest do you have in the buyer other than the commission from sellers broker and poorly enforced fiduciary?

Please correct me.

I love to be PROVEN wrong.

Also, please explain why it is that a buyers agent is able to make a living. What would be the buyers agents sales pitch?

[Souix]

Originally posted by csadave
Then please madam real estate broker, explain the process for us all.

Do you read your own disclaimers you make your buyers sign?

What vested interest do you have in the buyer other than the commission from sellers broker and poorly enforced fiduciary?

Please correct me.

I love to be PROVEN wrong.

Also, please explain why it is that a buyers agent is able to make a living. What would be the buyers agents sales pitch?

***Start a new thread. This is not the subject of this one.

We have already received the appraisal and also the good faith estimate, but the good faith estimate arrived after the offer was accepted the first time. We are waiting for the sellers concession to be signed by the sellers. The amount that we would need to bring in according to the mortgage company is around $6700 after the 3% sellers concession. We did not receive a revised good faith estimate after the offer was revised the second time or third. We received the good faith estimate a few days after I found out that we were switched to Conventional, that was the end of May.

Thanks for your help. I will check out the hud site. This is such a pain in the butt. I heard of headaches when buying a house but I never imagined this.

[Souix]

Originally posted by aghazle
We have already received the appraisal and also the good faith estimate, but the good faith estimate arrived after the offer was accepted the first time. We are waiting for the sellers concession to be signed by the sellers. The amount that we would need to bring in according to the mortgage company is around $6700 after the 3% sellers concession. We did not receive a revised good faith estimate after the offer was revised the second time or third. We received the good faith estimate a few days after I found out that we were switched to Conventional, that was the end of May.

Thanks for your help. I will check out the hud site. This is such a pain in the butt. I heard of headaches when buying a house but I never imagined this.

***You'll need to get a copy of the revised Good Faith Estimate. But if I were you I would take the loan somewhere else, even if the appraisal has been done.

There are so many loan programs available for first time home buyers there is no reason why you should be confined to this conventional loan. Check into the AmeriDream and Niahmiah programs (which are FHA loans). The down payment on these two programs is donated funds that never has to be paid back by the borrower and the seller can still help with your closing costs. I have sold homes where the only cash the buyer had to bring to closing was about $16. Of course, check your financing contingency on your contract, your agent will have to write up an Addendum should you decide to switch lenders and get a different type of loan. Let us know what happens and good luck!

[HomeGuru]

Originally posted by csadave
Check your federal truth in lending disclosure statement. Which you should have got when the loan was conceived.
Does it have an FHA /VA # on it.
What is the amount financed?
Does that equal the FHA or Conventional loan values down?

The bad news is that if they are no longer offering FHA loans its probably because FHA said they could not. Expelled from the program for some reason.

The good news is that you have recourse if the FTILDS is not the truth. AND if you were approved through FHA loan you will be approved with other mortgage companies.
Go with a differant company! Even if you have to eat the appraisal and survey costs which you may not. Take them to the next guy with you Maybe he'll take em. You paid for it they belong to you! Inspection not required but get one if you have not already. Did you pay for the FHA inspection? They are two different things.Title policy should not have been paid yet but if so see if you can get it.

Check your HUD1 statement for third party vendors that are to be paid by buyer. FHA limits the costs than can be paid by the buyer.

Important! Compare your APR rates which may be 5.625% if your loan rate is 5% The lower APR less costs to you. Not down but actual closing costs. Where the mortgage companies make there points etc. Some of these scam artists will try to charge you $300 for credit report. WRONG dont pay more than $75

Make that realtor help you out most likely he is not a buyers agent and is therefore being paid by the sellers broker and you not contracted to him. They split 6% 3 each. Immediate conflict of interest! Tell him you can take that 3% "COMMISSION" (another word for interest and thus a conflict thereof not in your favor) to another agent! He could even take a 1% hit to help with your down by extending less costs to the owner whala owner contributes 1% to your down payment. Now your at 4% down.

Hope that helps. Im not a lawyer or HomeGuru but i did much the same with my FHA loan. I hate when professionals take advantage of lay people in these complicated matters. Education is your best defense.
+ go to hud web site and learn more.

aghazle, I have no legal advice for you but I will tell you my story in case you find any encouragement, advice, or just some commiseration in the reading of it. When I bought my condo, the preferred loan officer the developer was using kept trying to push me around. I researched all these first-time buyer programs that I wanted to use, but the loan guy just kept trying to push me into products where he made more money and could do less work. He tried to convince me that my credit was too bad for this program, my ratios were too high for that one, or that his bank no longer does calfha loans. Luckily, I was dealing with a large bank for my loan. I went to a different branch and talked with another loan officer who was nice enough to discuss all the different programs with me. Then, I called the developer that I was buying from and my loan officer's supervisor to complain. The loan guy was still giving me problems so I just told the supervisor that I was not going to work with him and I would only work with the guy from the other branch. Apparently, I was not the only one that was having problems with him. Next thing I know, the guy I picked from the other branch is now the preferred loan officer for that developer. *smile* I guess squeaky wheels can get some grease sometimes. Oddly enough, I did end up going conventional because the FHA approval on the subdivision got held up. However, the mortgage that I got was many points lower than B paper loan the first guy was trying to push me into and I was 100% financed. I hope things work out well for you too. Good luck.

[HomeGuru]

Originally posted by theother
aghazle, I have no legal advice for you but I will tell you my story in case you find any encouragement, advice, or just some commiseration in the reading of it. When I bought my condo, the preferred loan officer the developer was using kept trying to push me around. I researched all these first-time buyer programs that I wanted to use, but the loan guy just kept trying to push me into products where he made more money and could do less work. He tried to convince me that my credit was too bad for this program, my ratios were too high for that one, or that his bank no longer does calfha loans. Luckily, I was dealing with a large bank for my loan. I went to a different branch and talked with another loan officer who was nice enough to discuss all the different programs with me. Then, I called the developer that I was buying from and my loan officer's supervisor to complain. The loan guy was still giving me problems so I just told the supervisor that I was not going to work with him and I would only work with the guy from the other branch. Apparently, I was not the only one that was having problems with him. Next thing I know, the guy I picked from the other branch is now the preferred loan officer for that developer. *smile* I guess squeaky wheels can get some grease sometimes. Oddly enough, I did end up going conventional because the FHA approval on the subdivision got held up. However, the mortgage that I got was many points lower than B paper loan the first guy was trying to push me into and I was 100% financed. I hope things work out well for you too. Good luck.

**A: and this is the other side of the story.