| I screwed up on my client's loan
What is the name of your state? GA
I am a mortgage lender and my client recently closed on a 1st & 2nd mortgage refinance. The 1st mortgage was SUPPOSED to be interest-only, but due to a mix up, docs were printed as a fully-amortized loan. The customer questioned the payment at closing but was reassured that the listed payment was indeed the "total payment". The customer understood "total payment" to include the 2nd mortgage HELOC, but the closing attorney understood it to mean PITI on the 1st mortgage only. There were no docs at closing that showed the payment on the 2nd mortgage, and since the fully-amed 1st mortgage payment was coincidentally consistent with what they were expecting to pay on a 1st & 2nd interest only, they signed. Of course, when the first bill arrived, the proverbial feces hit the fan.
As the originating broker, I have tried everything I can do to get the lender to fix it since they equally share blame with me, but they have already sold the funds in bulk to their investor although they retain the servicing. I am told by the lender that the only way to fix it is to completely reclose the loan, but the rates are now much higher.
I have proof that the file was submitted, underwritten, and approved as an interest-only loan. But because I priced it incorrectly, and didn't catch the error (nor did the lender), the closing docs printed as a fully amortized loan.
Can these people sue? I'm hoping that if they at least hire an attorney to threaten a lawsuit, that maybe they could get some resolve.  | 
Linear Mode
