Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

My mortgage lender screwed me a week before closing.?

I qualified for a new program called the HLPR loan back in April. It only required 3% down and an interest rate of 5.50%. My credit score is about a 740. I signed my contract and sent in my 3%. 2 weeks later I receive my GFE which states an estimated pmi of $67.10 per month which I thought was awesome. Now it is June (and on a Friday evening) and my lender calls to tell me that I need to put down another $4000 to get pmi (she says new pmi guidelines) and banks won't loan 97% ltv anymore only 95%. . I am scheduled to close any day now and I have to take money from my closing costs because she says that she just found this out The program only required 3% down and I have a committment letter to prove it. Did I do anything wrong? Should I talk to my real estate attorney?

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  • Lisa L
    Lv 6
    1 decade ago
    Favorite Answer

    All the guidelines are changing almost daily. Sometimes we get a heads up, sometimes we don't. What was offered in April more than likely is not offered today. The PMI companies are the reason the 100% loan is gone so they have a huge impact on what is available. They would not insure them. You are probably working with a Broker. They have no idea who they will be sending your loan to so that could be why this happened. She still should have been keeping you informed of changing conditions. Try a Mortgage Banker, not Broker. Tell them you want an FHA loan. You only have to have a 3% investment, some of that can be in closing costs.

    Good luck & sorry this happened to you..

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  • 1 decade ago

    It's very possible that the lender guidelines have been changed and are much more stringent, I do know that the company I work with has told us we can only do 95% ltv lending due to federal guidelines as a result of the mortgage crisis. However anything that is in the pipeline, so to speak, usually falls under the old proposals. Look at the fine print on the application.

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  • 1 decade ago

    I would definately speak with your attorney to see if you can get out of this. It really isn't anything you did. The lenders are constantly, and I mean constanly changing their underwriting guidelines, and it seems like they are doing this daily. It is very difficult for any borrower and mortgage professional to keep up. Basically, the banks are terrified that any borrower will not be able to make payments, thus the underwriting guidelines keep changing to ensure, in the lenders eyes, that a borrower can make the payments. Definately speak with your attorney, with you as far in the process are you are, I'm suprised in a sense that the lender is making you do this as most lenders usually apply revised guidelines to new applications, but these are not usual times

    Source(s): 7 years mortgage industry experience
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  • 1 decade ago

    I would talk to your lawyer. My brother in law just went through the same thing. After talking to a lawyer, he got out of the deal for the terms changing-and it was in his best interest to do so. Personally, I would try to go through a bank. With your credit score, you should be able to get a decent interest rate on a home loan.

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  • 1 decade ago

    You could threaten to call the FTC about her trade practices. Tell her she needs to follow the commitment letter even if it means she puts some of her commission in to make this deal happen. Don't hesitate to call the local TV station about this companies practices. But make a big enough stink and maybe they will honor their commitment.

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