WTF! I Locked in at 7.000 and now they say I have go 7.375!!

[41honda]

I locked in at 7.000% apr on a 30 year fix loan with 0% origination fees and 0% points on 8/27 on a 94,900 condo. Now a few days before I close my loaner officer tells me that she screwed up and put "condo" and not "new condo" on the app. And that Fannie May treats them differently. I told her before it was a new condo. I even gave her the listing sheet that said it, which she copied.

 

My loan officer said that if I want the 7.000 apr I would have to pay about 1067 (1.08% I think) dollars at closing. Or I can go with 7.375 and pay about 350 extra at closing. Before she told me 7.000 with nothing extra and I thought I "locked" in at those rates. I read the lock agreement and the only thing it says is that I am locked in till oct. 26, 2003, and that the lock agreement doesn't construe as an approval or a guarantee of close date. I would think they would have to keep to the lock agreement.

 

What can I do? Can I hold them to the pre-approved lock agreement?

 

Thanks

[NeedItNow]

Condos are not big around here, so I'm unsure of the rules as far as Fannie goes.

 

I will say, however, that when something like this happens and it is our fault, we eat it.

 

Best Regards,

 

Matt

[willtygart]

I can't even find 7% on my rate sheet!!!!!!! I say you do a couple of things.....first, call them up and say its bs and that you are gonna contact your states department of financial institutions (unless yer a client of mine...in that case, I have a small "hush" fund to keep angry clients from doing this :shock: ) and then look for another broker that can do this loan really quick for you if they won't budge at all. I didn't know that there was a "new" condo hit on the loans....and I have done a couple....I must just be a moron. :shock: I can believe that it was a mistake...but like need says, sometimes you have to man up and take it on a chin as a broker

[41honda]

I asked her how could you change the interest rate or add an origination fee after I locked in. And she said since the information wasn't put in correctly the lock doesn't apply. Then I went on to say I told you it was a new condo and that data sheet said new too. Her reply was it was my fault and I'm sorry. I told her I felt that I shouldn’t have to pay the $1000 origination fee. She said let me see if I can get the $150 application fee removed. And she called back saying she wouldn't do that.

 

I am scheduled to close on the 10th at 9:00am. I still haven't got the final approval. I expect it on Monday. I really don't have time to shop around, because I have to have loan approval by the 15th to meet the buying agreement.

 

What angle should I go at her with threats?

Do you guys have any contact info for the FTC or Iowa agencies?

 

I would like to have a complaint form completed and ready to mail. Take it to her on Monday and say either one you wave the $1000 or I will pay the $1000, file a complaint, and sue you for the $1000.

 

Can I sue in this situation?

What do you guys recommend?

 

Thanks

[41honda]

Which of the following would apply to Union Planters?

 

Mortgage Companies

Division of Credit Practices

Bureau of Consumer Protection

Federal Trade Commission

601 Pennsylvania Avenue, N.W.

Washington, D.C. 20580

(202) 326-3224

 

Federally Insured Savings and Loan Institutions and Federally

Chartered Savings Banks

 

Office of Thrift Supervision

1700 G Street, N.W.

Washington, D.C. 20552

(202) 906-6000

 

State Member Banks of the Federal Reserve System

 

Division of Consumer and Community Affairs

Board of Governors of the Federal Reserve System

20th and Constitution Avenue, N.W.

Washington, D.C. 20551

(202) 452-3946

 

National Banks

 

Compliance Management Division

Office of the Comptroller of the Currency

250 E Street, S.W. Washington, D.C. 20219

(202) 874-4810

 

Federally Insured Non-Member State-Chartered Banks

and Savings Banks

 

Office of Consumer Programs

Federal Deposit Insurance Corporation

550 Seventeenth Street, N.W.

Washington, D.C. 20429

(800) 424-5488

(202) 898-3536

 

Federal Credit Unions

 

National Credit Union Administration

 

1776 G Street, N.W.

Washington, D.C. 20456

(202) 357-1065