My wife and I both have great credit (each over 750), make combined $115K per year, no foreclosures/etc, verified employment, and are trying to re-fi a $403,000 loan on a $600,000 house. By all accords, an easy loan.
On 10/05, we locked a loan with a lender at 6.35% and paid a $500.00 appraisal fee. I advised them that I wanted no cash out of pocket expense and that I wanted my taxes and insurance rolled into my monthly payment.
On 10/07, in a FedEx pack, among many docs/forms, we received:
"Good Faith Estimate"
A 4 page "Uniform Residential Loan Application"
They told me these weren't the final forms and to not sign/return them, but these forms did indicate 6.35% with taxes factored into the loan.
On 11/08 (more than 30 days later) the lender advised me via phone that they had FINALLY completed the docs and that the only change would be a $700 out-of-pocket expense.
That same night, they sent a notary to my house who presented me:
6.50%
$1250.00 out of pocket expense
No taxes paid into the monthly loan amount
On 11/09, he called me to asked why we hadn't signed. When I clarified for him, he said "oh yeah, I apologize -- I forgot to tell you about the rate change, but I didn't know the underwriter added an extra $550 to the upfront cost".
I have since contacted another lender and already been conditionally approved to be closed by the end of the month.
Question -- Do I have any legal recourse to reclaim my $500.00 appraisal fee or potentially drag this original lender through the mud for bad business/apparent predatory lending?
Any thoughts or insight?
On 10/05, we locked a loan with a lender at 6.35% and paid a $500.00 appraisal fee. I advised them that I wanted no cash out of pocket expense and that I wanted my taxes and insurance rolled into my monthly payment.
On 10/07, in a FedEx pack, among many docs/forms, we received:
"Good Faith Estimate"
A 4 page "Uniform Residential Loan Application"
They told me these weren't the final forms and to not sign/return them, but these forms did indicate 6.35% with taxes factored into the loan.
On 11/08 (more than 30 days later) the lender advised me via phone that they had FINALLY completed the docs and that the only change would be a $700 out-of-pocket expense.
That same night, they sent a notary to my house who presented me:
6.50%
$1250.00 out of pocket expense
No taxes paid into the monthly loan amount
On 11/09, he called me to asked why we hadn't signed. When I clarified for him, he said "oh yeah, I apologize -- I forgot to tell you about the rate change, but I didn't know the underwriter added an extra $550 to the upfront cost".
I have since contacted another lender and already been conditionally approved to be closed by the end of the month.
Question -- Do I have any legal recourse to reclaim my $500.00 appraisal fee or potentially drag this original lender through the mud for bad business/apparent predatory lending?
Any thoughts or insight?
