W
wlp67
Guest
What is the name of your state? Massachusetts
Hi,
Here is the situation:
Borrower calls to have a rate locked on 6/11. Rate is locked. Borrower takes 13 days to get application, disclosures and needed documents to loan officer for processing submission. At this time borrower “would rather not pay off second mortgage”.
At the end of initial rate lock expiration, loan officer extends the rate lock and take a .25% hit on the commission. No charge to borrower.
On 7/14 borrower offer to pay off 2nd mortgage in order to speed up the process. Loan officer says not to worry things will be fine.
With 21 days left lender sends conditions back to broker, one condition is the documentation of the 2nd mortgage will be needed, Truth in Lending. Borrower does not have readily available. After 2+ weeks broker receives needed docs for 2nd mortgage required by lender.
Rate lock expires and lender policy will not allow additional extensions.
Borrower is livid, plans to call Attorney General, holds Loan officer responsible for lost money (rate) and plans legal action.
Question is – is there any legal recourse in this? Can the Loan Officer be sued personally? Can the Broker be help responsible? The basis is the LO gave bad advise for rot accepting the payoff of the 2nd mortgage.
Thanks.
Hi,
Here is the situation:
Borrower calls to have a rate locked on 6/11. Rate is locked. Borrower takes 13 days to get application, disclosures and needed documents to loan officer for processing submission. At this time borrower “would rather not pay off second mortgage”.
At the end of initial rate lock expiration, loan officer extends the rate lock and take a .25% hit on the commission. No charge to borrower.
On 7/14 borrower offer to pay off 2nd mortgage in order to speed up the process. Loan officer says not to worry things will be fine.
With 21 days left lender sends conditions back to broker, one condition is the documentation of the 2nd mortgage will be needed, Truth in Lending. Borrower does not have readily available. After 2+ weeks broker receives needed docs for 2nd mortgage required by lender.
Rate lock expires and lender policy will not allow additional extensions.
Borrower is livid, plans to call Attorney General, holds Loan officer responsible for lost money (rate) and plans legal action.
Question is – is there any legal recourse in this? Can the Loan Officer be sued personally? Can the Broker be help responsible? The basis is the LO gave bad advise for rot accepting the payoff of the 2nd mortgage.
Thanks.