Mortgage sold after I was told it wouldn't be.

[jrfxdci]

Almost a year ago I refinanced through Champion Mortgage. Part of the deal, and apparently one of Champion's marketing ploys, is that you are offered 'rewards' after the first year. Another thing they promise is that you can do a no-cost refi to a lower fixed rate.

I was told during the loan process that I could refinance at a lower fixed rate as long as my payments were always on time and I didn't do something stupid to mess up my credit. I was also told that throughout the life of the loan I could refinance for no cost if the rates went down. This was all well and good, but I knew all bets were off if Champion sold the loan.

Well, here we are almost at the one year mark and they have sold the loan, leaving me without the no-cost refi. I spent a great deal of time lamenting over the possibility of this happening with the Champion loan officer when I first did the refinance. He assured me the loan would not be sold off and I have two emails from him stating this.

So, I went back to Champion mad as hell and presented them with the emails. They stated that loan officers will sometimes promise the world to make the sale... no kidding. My point was that I was assured this wouldn't happen and have the emails from their representative stating that it would not. They kept referring back to the contract which doesn't say it will be sold off, but it doesn't say it won't. "Of course there's always a chance" they told me.

Well, now they are telling me they will refinance me again, but not at no, or even low cost. They said they will knock a quarter point off, which is what they would do for anyone on their books for two years. I'm wondering if they've ever had anyone on the books for that long.

I'm of the opinion they should do the refi for no cost, just as I was told would happen.

Any thoughts?

[Blacky1]

Champion Mortgage does not service loans. They have whats called a warehouse line (usually somewhere around $15 - 50 million). If they made you that offer, you may still go through them for your loan (refinance) as they deal with a slew of lenders.

If you refer to the "RESPA" docs that were sent to you with the initial package. There is a disclosure in there called the "Servicing Disclosure". This is required by RESPA and reflects the percentage of loans serviced and sold over the past 3 years.

If you go with a no cost refi. all they are doing is jacking your rate up to cover the fees through YSP, which is paid by the lender. It is not in your best interest due to the fact you are in essence financing your closing costs over the life of the loan.

[pojo2]

Really should have educated yourself on the terminology "no cost". To illistrate I will ask you but 1 question, do YOU work for free?

You were even aware enough to know a major portion of home loans are indeed sold and sometimes before the ink is even dried.

Unless it is absolutely guaranteed in a WRITTEN contract you stand the chance of having the Mortgage sold at some point.

[HomeGuru]

I agree**************.....

[jrfxdci]

Ok, I agree that I probably didn't do enough homework on this. Probably what pushed me toward Champion in the first place is that they predicted what kinds of underhanded things everyone else at the time would try to do and it turned out they were right.

owever, I have a standard I hold someone to that wants to do business with me. BS me and you're done. Champion is done, even though they very well may turn out giving me just as good a deal as anyone else. As they say, Fool me once, shame on you. Fool me twice, shame on me.

I'm heading to the credit union tomorrow where I know they don't sell them off.

[nexus6]

Live and learn if it's not in the contract that you signed you get what you get. Good luck with your credit union, which oh by the way may also sell the note. There is no guarantee that if you have a note with let's say chase it's always going to be chase, someday chase could be bought by bank of Dubai and you wont know it until the deal is done and you start getting your statements in arab.

[GiveLove]

Sorry to hear that. I have never known a lender who finances property to actually keep it, it's usually sold immediately. Since they are shysters, they lied and planned to sell it before a year was up.

[pojo2]

Originally Posted by GiveLove

Sorry to hear that. I have never known a lender who finances property to actually keep it, it's usually sold immediately. Since they are shysters, they lied and planned to sell it before a year was up.

Oh brother!

[HomeGuru]

thanks pojo2****************************.....