Easy Scenario and dishonest broker

mirfan · Joined: 25 Apr 2008 Posts: 2

I am looking to buy a house in VA, actually I already put a contract on one house. I am looking for 30 years fixed rate with IO option or 10 years IO loan. Loan should be very easy, please email me your best rate.

Sales Price: 350k
Loan Amount: 280k
Doc Type: FULL
Income: 100k
Fico: 760

My second question is I need to file a complaint against a MD broker but dont know where to start. What happened was she confirmed a rate before I put the contract on this house and she told me its lock for 45 days with Chase. After searching on internet it seems like the rate she promised me impossible to get so I asked for lock sheet. I have been asking for lock sheet for 3 days now but now she is not replying my emails. I have all the emails from here stating rate is lock for 45 days and I want to take her to court. I know FBI was at her broker shop but her loan were fine. Only reason I gave her my loan was cause I know her through a friend. I don't want to loose this house and my EMD. What should I do?

m2c · Joined: 03 Aug 2005 Posts: 743

Like to think “your” LO is not dishonest but the lack of communication is a red flag. Assuming licensing applies, Google “maryland mortgage broker license” and you should come up with a host of possibilities to lead you to the state regulatory authority. Couple examples:
http://www.dllr.state.md.us/finance/mortorigfaqs.htm

http://www.dllr.state.md.us/finance/mortlendlicpamphlet.htm

Rather than “dishonesty” the situation may be one of miscommunication with clumsy handling by the LO. You mentioned the rate was quote before you signed the sale contract. There has been a bit of volatility in the market of late and the “old” rate may have “vanished”. Certainly the LO should have made this clear at loan application. In fact we have the loan applicants sign a form at application as to whether their rate is locked or floating and for how long. Such a form eliminates any misunderstanding. Some states, for example Massachusetts, prohibit (or at least used to) brokers from issuing rate locks. Might be the case in MD and this may be why you’re not getting a written “lock” letter. I don’t operate in MD and therefore am not sure.

Complaining to the state regulatory authority might just end up in a he-said/she-said standoff but it’s worth trying AFTER you’ve spoken with the LO’s supervisor.

mirfan · Joined: 25 Apr 2008 Posts: 2

Rate was quoted to me 10 days ago, I liked the rate and I signed the contract. She even sent me an email and GFE with the rate on it. I have every thing I need to proof if I decide to go to court.

Newyorkloanman · Joined: 27 Apr 2008 Posts: 6

Things like this are the reason why this industry is in such a mess. Looks like you should not have a problem getting the going rate for a good credit full income borrower.

You can contact the banking department and file a complaint against the broker you are dealing with.

let me know if you need any futher assitance in getting you loan done.

Best of Luck.

Steve Ching · Posted: Mon Aug 04, 2008 10:56 pm Post subject:

Neither you or your loan originator had the right to obtain a rate lock on a property you have no legal interest in (aka before a purchase and sale is signed).

In doing so you restrict the current owners ability to obtain a rate lock through that lender for that property. You have no authorization to do so. If you sue the broker you will both lose.

Edit:

Oh...and if you are looking for a conforming Fannie Mae type loan just look at Fannie Mae's website to determine rough rates (on 60 day locks...30 day locks are generally 0.125% better). There are no major lenders I know of that will originate conforming loans even with their own money significantly below Fannie Mae. If they were willing to accept lower rate loans they could just buy them by the billion from Fannie Mae and skip the headache of originating them.

https://www.efanniemae.com/sf/refmaterials/hrny/