Good Faith Estimate/Truth In Lending Q: A friend of mine recently told me about a refinance they did with a mortgage broker. They received a good faith estimate of closing costs, and approved it, but when the closing documents were received, all sorts of weird fees were added, and they had to go ahead and close. What can they do?
View Answer Q: I close in only 3 days and just got my good faith estimate from my lender, with some interesting charges. I was told I was not going to pay points, yet I have something called a yield differential. From what I can tell this is a fee based on points. Am I right?
View Answer Q: Why is the Real Estate person who is helping you buy a home asking for a 'good faith' deposit after you make an offer? Where does this money eventually go?
View Answer Q: I have several, but very important questions. I live in California and applied with an Arizona mortgage company to refinance my personal residence. I received a Good Faith Estimate dated 3-3-03 showing 0% origination fee. I furnished all documents including appraisal, but the loan was not processed within the 45-day lock period. On 4-30-03 we received another Good Faith Estimate stating a higher, 0.125% loan origination fee. On 5-13-03 we received documents and a settlement statement showing an origination fee of 0.25%. Though I questioned the higher loan fee, I did not receive any satisfactory explanation, and in fact was told that if I did not sign the loan documents, my loan would be cancelled.
We did not sign the loan as we feel we did not receive an advance proper and true disclosure. I believe this action is covered by the Truth-in-Lending Federal Regulations. Do you agree that we have a right to a true Good Faith Estimate of charges before we agree to a loan?
The lender acted in bad faith in dealing with us. When I made application, I was asked to make a deposit of $350 that was charged to my credit card. To add insult to injury, on 5-23-03, the mortgage company debited my credit card a charge of $3,873 without any explanation to me of the charges. I have lodged a protest with the credit card company and sent a copy to the mortgage company and also lodged a complaint with CA Dept of Corporations. However, this is an Arizona company. I know the mortgage company will plea that we signed a Loan Commitment Contract when we submitted our application, but it did not honor the loan lock terms.
Should I send a copy of my complaint to the Federal Trade Commission also? Is there a form for lodging a truth-in-lending complaint? Do I need an attorney to pursue my claim or can I go to a small claims court in my city? Is it a common practice to dupe consumers?
View AnswerQ: We are refinancing our home and received the GFE (Good Faith Estimate) but the term and interest rate are not what we agreed with the lender…it was for another option that was offered to us. When we contacted the lender we were advised to go ahead and sign the document because it is not binding. Should we sign this document under the assumption that the lender will make the corrections or do we ask for a corrected copy before signing? I don't want to be a pain about it.
View Answer Q: We are refinancing our home and received the GFE but the term and interest rate are not what we agreed with the lender…it was for another option that was offered to us. When we contacted the lender we were advised to go ahead and sign the document because it is not binding. Should we sign this document under the assumption that the lender will make the corrections or do we ask for a corrected copy before signing? I don’t want to be a pain about it.
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