Lender in breach of RESPA Laws?

[Sazzle]

What is the name of your state? TEXAS

Hello everyone,

Im in a pickle here and hope someone can help.

My mortgage lender has been SLOOOW. Mortgage application was signed on 06/04/05 and the Good Faith Estimate was not signed by the Loan Officer until 07/11/05 despite my complete cooperation and timely mailing of documents.

I have read on the HUD website and on many other websites that RESPA Laws state that Lenders must provide a the GFE no later than 3 business days after the application was signed. If this is true and I am not misinterpreting the law, my lender is in breach of federal law by not having supplied me with the GFE no later than 3 days after the date the mortgage application was signed.

Subsequently this has caused me to be in breach of my agreement of sale as the agreement of sale states that Mortgage approval is due 30 days from the mortgage application date. I have questions about this but I'll post it on the Buying forum.

Can anyone confirm the RESPA Law in respect of GFEs and help me understand what my rights to recourse are for this increadible delay?

Ideally I wish to inform the lender that they are in breach of Federal Law (if that can be confirmed) and request the refund of my application fee. Any help with a letter to this effect would be much appreciated.

Thank you so very much,
Sarah

 

[HomeGuru]

What is the name of your state? TEXAS

Hello everyone,

Im in a pickle here and hope someone can help.

My mortgage lender has been SLOOOW. Mortgage application was signed on 06/04/05 and the Good Faith Estimate was not signed by the Loan Officer until 07/11/05 despite my complete cooperation and timely mailing of documents.

I have read on the HUD website and on many other websites that RESPA Laws state that Lenders must provide a the GFE no later than 3 business days after the application was signed. If this is true and I am not misinterpreting the law, my lender is in breach of federal law by not having supplied me with the GFE no later than 3 days after the date the mortgage application was signed.

Subsequently this has caused me to be in breach of my agreement of sale as the agreement of sale states that Mortgage approval is due 30 days from the mortgage application date. I have questions about this but I'll post it on the Buying forum.

Can anyone confirm the RESPA Law in respect of GFEs and help me understand what my rights to recourse are for this increadible delay?

Ideally I wish to inform the lender that they are in breach of Federal Law (if that can be confirmed) and request the refund of my application fee. Any help with a letter to this effect would be much appreciated.

Thank you so very much,
Sarah

**A: not a biggie. This happens all the time. What were the specific reasons for the delays?

 

[Sazzle]

Regardless if this "happens all the time" or not, I do not wish to do business with this lender because of their inability to comply with federal law, for whatever reason.

There were no reasons surrounding the delay that I can see which is why I consider it an unnecessary delay. Mind you it has caused me to be in breach of my agreement of sale with my builder.

I do not take this lightly. Any confirmation of breach of federal law on the part of the lender, as requested above, would be appreciated.

Thank you.

 

[HomeGuru]

Regardless if this "happens all the time" or not, I do not wish to do business with this lender because of their inability to comply with federal law, for whatever reason.


**A: then provide the lender with written termnation of your loan application.
*********
There were no reasons surrounding the delay that I can see which is why I consider it an unnecessary delay.

**A: answer my question.
*******
Mind you it has caused me to be in breach of my agreement of sale with my builder.

**A: see above.
***********

I do not take this lightly. Any confirmation of breach of federal law on the part of the lender, as requested above, would be appreciated.

Thank you.

**A: see above. Can't you answer my simple question? Why are you being so evasive? What is the real and complete story here?

 

[Sazzle]

You asked what were the specific reasons for the delay.

I told you that there were none that I could see. In otherwords, there were no reasons for any delay on my part because there was no delay on my part. I provided all of the information they requested in a timely manner and provided complete cooperation with the loan officer.

The GFE, despite several periodic follow-up phone calls to find out what the delay was on their end, did not appear until well after 30 days of the date of signing of the agreement of sale.

I have asked the lender the reason for their delay to which they had no reply.

 

[HomeGuru]

You asked what were the specific reasons for the delay.

I told you that there were none that I could see. In otherwords, there were no reasons for any delay on my part because there was no delay on my part. I provided all of the information they requested in a timely manner and provided complete cooperation with the loan officer.

The GFE, despite several periodic follow-up phone calls to find out what the delay was on their end, did not appear until well after 30 days of the date of signing of the agreement of sale.

I have asked the lender the reason for their delay to which they had no reply.

**A: good grief, you accept a no reply from the lender whom you applied for a mortgagge loan with and want us here on this website, complete stangers to reply to you. Where are your priorities? Get on the phone now and demand answers from your mortgage loan officer. Talk to the underwriter. Talk to their boss. There HAS to be a reason for the delay.
You really need to be more proactive.

 

[Sazzle]

good grief yourself. do you understand just how insulting you really are?

I am not asking for explanations of the delay from perfect strangers. I am mearly here asking if anyone can confirm a LAW for me. This is a LEGAL ADVICE forum, is it not?

I think if you are unable to confirm or deny this information regarding the federal law surrounding GFEs, as originally requested, you should hold your response and defer to someone who knows what they're talking about rather than simply attempting to agitate fellow members of this forum while providing no useful information whatsoever.

Thank you.

 

[HomeGuru]

good grief yourself. do you understand just how insulting you really are?

I am not asking for explanations of the delay from perfect strangers. I am mearly here asking if anyone can confirm a LAW for me. This is a LEGAL ADVICE forum, is it not?

I think if you are unable to confirm or deny this information regarding the federal law surrounding GFEs, as originally requested, you should hold your response and defer to someone who knows what they're talking about rather than simply attempting to agitate fellow members of this forum while providing no useful information whatsoever.

Thank you.

**A: since you could not provide the reason(s) for your mortgage loan delays, I am without information to help you further.
Not only am I a real estate attorney but a licensed mortgage broker as well. I deal with RESPA on a daily basis. Good luck to you. You're gonna need it.

 

[Sazzle]

You deal with RESPA on a daily basis yet you could not confirm the law regarding GFEs for me. You must be great at your job.

 

[PghREA]

Better watch out HomeGuru, Sazzle will be spending a few days researching free advice forums to see what she can get you on.


To answer your question Sazzle, the lender should have given you a Good Faith Estimate when he took the loan application, especially with today's technology. Why he didn't, you'll have to ask him. Now, tell us why you want to cancel your loan application and get your application fee back.

 

[LoanOfficerDan]

RESPA Violation

Yes, they violated RESPA, but it doesn't mean much. If you wanted to file suit based on the GFE being late, you probably wouldn't get far. If consumers complained enough about a particular lender, then it could possibly lead to an investigation as to the lender's RESPA compliance. If the investigation finds a few screw ups here and there, then the lender is told to fix it. If the investigation finds "CONSISTENT" violations, or has failed to correct previous warnings, then the lender could be hit with serious penalties.

 

[Sazzle]

Thank you LoanOfficerDan and PghREA for your help.