Home Loan Officer Negligence

[melissav]

My jurisdiction is: Minnesota

In May of 2009, I was preapproved for a home loan. In the beginning of June, I found a home and started the buying process. Currently, July 28th, I am 3 days past closing. However, as a penalty by the seller, I pay $100 per diem after the initial set closing date. Why am I here?

My loan officer had taken work home with her... my personal information sitting in her home and then went in for emergency surgery. I called the mortgage company constantly to find out where my loan is sitting and no one could give me an answer. One week later, I hear from my loan officer. No one could take my file over because she had all my highly sensitive personal documentation sitting in her home! So while she was in recovery and countless efforts on my part to contact someone there to help me, nothing happened to my loan.

Had my file been taken over by someone else, it would have been submitted to the underwriter a week before than it actually did and I would not face penalties. So by the time I actually close next week, I'll be out $700 for penalties. $200 for movers that I have to cancel and lose my deposit and now have to pay for a month's worth of rent that I hadn't anticipated... another $700. All in all, I'll be out $1600 because of one woman's negligence, assuming I actually do get to close next week.

Please offer advice as this process is robbing me of every dime I have.

 

[NY_Shark]

These things can always be argued, but my initial impression is that there is no negligence here, and that you are unfortunately going to be eating that 1500 bucks. I think the practice of bringing work home is probably pretty common among mortgage professionals. But what this whole thing hinges upon is that the officer had emergency surgery. That makes a breach of duty argument difficult, and ergo nullifies a negligence claim. You can talk to the mortgage company and see if they will cover some of the costs or get a lawyer and see what he or she thinks. As far as negligence goes though, I don't think you're there.

 

[jharris352]

I definitely have to disagree with NY Shark on this one.

I owned two mortgage companies in Georgia for a total of 15 years so it happens to be a subject near and dear to my heart. I will grant you I don't know the state rules in GA but can tell you that regulators frown on taking work home. Here in GA the file is never suppose to leave the office and even there it is to be kept under lock and key. I highly doubt it is much different in Mn.

That having been said your problem is more the timing of the closing which is tricky. Personally, I would shoot your Realtor for allowing you to be put under the gun like that. The mortgage market is a mess even now and timing, even if they had no documents at home is anything but reliable. Your Realtor knows that and they put you under the gun.

Still, your mortgage person didn't do their job right. I would press the broker to pay your late fees. The deposit on the mover isn't going to be recoverable and neither is your extra month's rent. You had to live somewhere and either place you would have been paying a payment. There is no loss there. If they won't help you, contact the Banking and Finance Department or whoever regulates mortgages in MN. Later tonight I'll figure out who you should contact and send you another answer.

This doesn't have to be a legal matter. Squeal loudly to the broker or the branch manager. I would also jump on the broker for the agent you used. In this market a $100 a day for a deadline you can't control is silly.

Sorry for your stress. I know it's tough, but congratulations on being able to buy a new house in this economy.