Need Advice-false Mortgage info

[latarpley]

What is the name of your state? GA

I am having issues with my lender. First of all he revealed my approval amount to the buyer on my condo and the buyer and lender had a discussion about the purchase price. My lender suggested to me that I may want to try for a higer approval amount. I was appalled he became part of the negotiation process. This issue was minor compared to the next phone call.

I had my GFE, went and signed the loan papers for a first and second on a 80/15/5 loan, and received Truth in Lending Disclosures through the mail a week later. All was great until the lender called and advised me he missed some information and found the loan program offered to me for the second mortgage was not available. He missed the changes that took effect a week BEFORE the GFE was given to me. Now instead of a fixed interest rate the only thing he can offer is an ARM that can change every six months. He is trying to shop third party lenders for a fixed rate but he tells me the only thing he can find is around 10%. The orginal offer and disclosure was 7.25. His boss is trying to get approval from the company investors to honor what was offered to me and I was told not to worry that we had 30 days before closing. I am in a panic. Do I change lenders mid stream? Do I get an attorney and negotiate a buy down on the difference in loan terms? My lender has messed up twice and I need help on my options.

Tell him to stop right where hes at, and call another mortgage broker. Tell them the original deal that this guy was going to give you, and what he was going to charge you. Tell the broker that if he can give you the same deal for a lower fee, you'll go with him. We (mortgage brokers) are all sharks. You'll find another one that can get the same deal done, and will do it for less fees. If I was licensed in GA, id be peddling my services to you right now.

Originally Posted by latarpley

What is the name of your state? GA

I am having issues with my lender. First of all he revealed my approval amount to the buyer on my condo and the buyer and lender had a discussion about the purchase price. My lender suggested to me that I may want to try for a higer approval amount. I was appalled he became part of the negotiation process. This issue was minor compared to the next phone call.

I had my GFE, went and signed the loan papers for a first and second on a 80/15/5 loan, and received Truth in Lending Disclosures through the mail a week later. All was great until the lender called and advised me he missed some information and found the loan program offered to me for the second mortgage was not available. He missed the changes that took effect a week BEFORE the GFE was given to me. Now instead of a fixed interest rate the only thing he can offer is an ARM that can change every six months. He is trying to shop third party lenders for a fixed rate but he tells me the only thing he can find is around 10%. The orginal offer and disclosure was 7.25. His boss is trying to get approval from the company investors to honor what was offered to me and I was told not to worry that we had 30 days before closing. I am in a panic. Do I change lenders mid stream? Do I get an attorney and negotiate a buy down on the difference in loan terms? My lender has messed up twice and I need help on my options.

If you've already signed the loan papers, then tell him to bite rocks.

This is a scam.

[latarpley]

Originally Posted by seniorjudge

If you've already signed the loan papers, then tell him to bite rocks.

This is a scam.

Thanks for the advice. I finally received a call from the Corporate office of this major, publicly held, Southeast lending institution. I had spoken with this jokers boss for the second time laying out the situation. He advised me my consultant was not very experienced in working with uninsurable second mortgages (due to the construction phase of the condo conversion) and had made a mistake in the GFE. He talked with their investors and FannieMae to get an exception on my behalf. Everything is back to normal as quoted. He advised me that he would be following the process until closing. The rate on the first and second are good. Should I stay with them or bail? Uninsurable second mortgages were an issue with a couple of brokers I spoke with.