found out sudden change of lender credit the day before closing

I answered this on another forum earlier today...I reiterate: check out who their regulator is and complain there. Stick to your guns at the closing (hope it's not too late already) and insist that you get the money you negotiated so hard for.

Then, go on the forum here "About Mortgage Companies" and disparage the company as much as you'd like. We've seen diatribes about all sorts of lenders on here, so what you'll have to say will fit right in. Don't mention names, because you don't want to risk any lawsuits, but you ought to make known your ire to the world....and definitely let the lender know what you've done (after you do it), and keep insisting that you get the money you're entitled to. They can cut you a check out of petty cash, for cryin' out loud!

Yes, it is the same question, I worried nobody will look at the old post so I go ahead to post it as a new question again.
Not sure will the lender get me back the money since I signed the final paperwork, but will definitely file the complaints, post my experience here, and put bad review in common search engine, and will let the supervisor know I'm filing all these complaints!

Thanks for the help again!

didn't you ever get a rate lock agreement in writing? did you just tell the loan officer over the phone to lock the rate and did you leave it at that?

if you don't have something in writing (ie rate lock agreement) it's now your word against their word. they can just as easily say you wanted to wait for a better rate/fees before locking and that's what they did - they floated the rate per your verbal instructions. it may be dishonest and unethical on their part but it happens everyday. i'm sure they made enough off of you they could easily give you the $100, try to keep you happy and build a little goodwill but times are a changing.

without supporting documents to back up your claim, you could still let them know you will pursue this matter (whether you do or don't). they probably won't care one way or another with this tactic.

a better approach is to mention you have a friend/relative who is looking to refinance you were going send their way. may or may not work but it's worth a try.

In the uniform residential loan application form I signed, it did mention the rate, as a fixed rate, and the lender credit 755. I signed that, I don't realize I need to request a "rate lock agreement" for that, I thought from that application my rate is locked already. The rate is still the same right now, as I took a higher rate to get the lender credit to help my closing cost, so even the rate is higher, I can still keep the same rate, just the lender credit won't be the same.

I do have the loan officer's follow up email saying he resolved the issue and can give me $750 back at the 1st time when he told me the lender credit changed and I was upset saying want to cancel the loan, he talked to his superviser to get it fixed.

But I guess because I signed the final paperwork yesterday at the title company already, so not much I can do at this point. Because the closing date at contract is Fri, buying a fd's house she doesn't want anything delay. The final paperwork amount is not the same as the one I signed at the beginning, the title company assistant said those are est. numbers at the beginning. I tried to suck up the $100 but I am still upset the way they do things.

I do have a fd is buying a house, I don't think people like that will care much about it, if they do, they won't do something like that to start with. I will tell the supervisor it is not the good way to treat customer and business is not a one time thing.

I don't have too much faith in getting the $100 back, but want to do something to let them know it is not correct to treat customer like that.

Thanks for the advice!!

maywky, did you receive a Good Faith Estimate and Truth In Lending document a few days after you applied for the loan? It is possible this lender could be in violation of federal law with disclosure forms if they were not sent out or are inaccurate. Check on this as it may be another way for you to put pressure on them to get the balance of the credit you were promised.

This company is pretty wired. When I said yes on the application, which is a Sat, the loan officer collect all my information and documents, I cannot sign at that day, I need to wait till he sent the information to headquarter and the headquarter sent back the final paperwork for me to sign, which is Monday afternoon, loan officer was not available on Tue so we meet on the Wednesday. I did have the truth in lending on Sat and Wed, only receive the GFE on WEd when I signed the paperwork. The lender credit only appears on the loan application details of transaction, not in the GFE.

His explanation on the rate change at the beginning: he cannot lock the rate till I signed the paperwork, which is Wed, and that WEd afternoon he back to office the rate changed already, he keep waiting and hoping that it will go back up but it didn't. I was upset he should have told me when he found out the rate change, but I think that is not correct, he probably just did not lock the rate till 2 wks later and find out rate is not the same. Since I requested a higher rate, so rate can be kept the same, but the credit is lower. He insisted the GFE is still the same, is because the lender credit is not there.

I am writing to headquarter for complaint, should I asked for the $100 back since I already signed the final paperwork? Or just file as a complaint? Should I tell the headquarter I'm filing complaint to regulatory body and better business bureau?

Thanks a lot for all the help!!

Hello again!

I just posted my reply to your other original comment; and noted that there was activity here, so I figured I'd add another two cents.

Letting the headquarters know you're complaining up the ladder may well get them off their dead posteriors and give you a check.

Keep that email from the LO about the $750 - it's ammunition for you.

Since you did get the GFE and TILA docs that brings it back to the company's rate lock policy. Unfortunately, every company has their own rate lock policy about when and what is required before the borrower can lock in their rate and fees. It is not regulated or standardized.

In my opinion, it should be made mandatory that all lenders provide potential borrowers with the company's rate lock policy in writing upfront and even prior to application, though that will likely ever happen. Rate locks are too important of an issue to not address because until the rate is officially locked, all you have is basically is a quote subject to change.

Without giving names who did you get this loan through? Was it a mortgage broker, national lender, online direct lender, local bank and do they have a website that explains their rate lock policy in print? Also, I am curious what was the loan amount?

I agree with George the email you got stating the credit would be $750 is the best ammo you have going forward. If I know the type lender you used I can provide you with info on who to contact about filing a complaint. Then you could notify management where you got the loan that you intend to pursue this matter and who you will be reporting them to. This could move them to do the right thing and cut you a check.

I know the amount is not huge but to me the principle is what counts here. A reputable company would have already honored the credit you were promised so don't let them off the hook until you get that other $100 back into your pocket.

Jim in the second paragraph, you made the comment "likely ever happen" concerning the revelation of the rate lock policy. I believe you meant "likely Never happen." But nevertheless I understood.

Wait a minute..."without giving names who did you get this loan trough" seems to be asking her to name names...hmmm...you're pretty sneaky there, Jim. JK

Yes, indeed, a reputable company would have honored its employees' words and granted the credit. Regardless of the veracity of the employees involved, this should have taken place.

I so much enjoy two mirrored posts and the opportunity to opine on each of them.

OMG.. this issue started as a frustration and become something fun here...

Jim: I went to the local branch of a national mortgage company, not a bank, they do have a website, but I can't find any info about rate lock policy...let me know if u need more info.. Ha! The loan amount is not much, is a bit more than 100K (after I put 5% down).

I sent an email to the headquarter last night, did not hear anything yet. Im going to file complaint to the Texas Dept of savings and mortgage lending, the information is mentioned in my closing doc.

Thanks both Jim and George for being so understanding!! People around keep saying I make it as a big deal for just $100. But it is the principle here, I chose this company instead of the other one I really like, is because of this $755 credit at the beginning. Also, this loan officer is referred by a fd, so I trusted him a bit more than I supposed at the beginning... Therefore, when the loan officer said he can't give me the $755 I was pretty upset, as I could have went to the mortgage company I preferred. And, it is the 2nd time the loan officer didn't keep the promised amount, he did not bother to inform me this time, so that's why I get very frustrated.

Thanks Jim and George for the help! Appreciated!!

George, forgot to put a "not" in front of "likely will ever happen." but I get one back on you as you quoted me with "without giving names who did you get this loan trough" when I did write "through".

Regarding who the company was I was curious as to whether or not it was a local bank, credit union, direct online lender, major national lender, mortgage broker, etc., however, I see nothing wrong with mentioning the actual name of all parties involved. As far as I know, providing factual information isn't a crime yet, even if it paints someone in a bad light.

If it was me, I wouldn't rest until I got the money owed me along with a letter of apology for the needless aggravation and time spent to get a satisfactory resolution. I have had many battles over the years and have lost very few of them. This would be one that I would not lose.

maywky you are right. The attitude of many people would be to just forget about it and chalk it up as a bad experience and that's a key reason why the mess is as big as it is. People need to learn to stand up when they know they are being taken advantage of whether it is $100 or $10,000. It shouldn't make any difference on the dollar amount, it is the principle as much as anything else.

If you want to send me a PM with the website address of the company, I'll do a little more research and get back to you on how to proceed if they haven't yet agreed to pay you what is owed. I've gotten quite a few people money back on mortgage related fees they either overpaid or credits they had coming that were being withheld. I'll be more than happy to offer my services, so feel free to PM me.

Jim, I think I see both side of it. As I was upset thinking the whole thing is not right, so I want to do something. But then when I start doing the complaint letter, it takes up your time, especially you're moving in a house, you've a lot to do, so ends up that $100 seems less to be a concern.
But I still want to do something and let the company know it is not correct, I am not as good as mortgage as they do, but I'm a fool (I guess or I hope...). I fight so much to get the $750 at the first time, you can change other numbers, but please keep this $750 intact, otherwise, it seems not respectful at some point.

Thanks a lot for all the advice!! It really help getting rid of my frustration!

Sorry... I mean I am NOT a fool (I hope..)... Apperantly its too late need to sleep, or its contagious from you guys =p

That "h" will probably haunt me now, Jim. It's like a dangling participle.

I am in complete agreement with Jim, who maintains that people give up long before they ought to. It's true - the amount of money involved isn't the issue, and it's the repetitive patience and "oh it's no big deal" attitude of the public at large that has, in large part, created this monster that is called the mortgage industry. Lenders try, and succeed, at getting away with whatever "the market will bear," and it's simply not justice when that happens.

May, ignore anyone who says you're making a big deal out of very little. Multiply your "very little" by the thousands of folk who've suffered and you'll come up with a pretty fair piece of change. If we could tax these inglorious basterds (Kudos to Quentin Tarantino), our deficit would be substantially lower nationally, and the rich would be able to keep their undeserved money (they will anyway).

Let me stay away from politics. It is not politic to be political in this arena, anyway.

May if some of what we've offered is contagious, I happen to think that'll be a good thing. That's not to say you ought to begin spouting off like we do, for there's always the fear and trepidation that comes when it appears we may be getting full of ourselves. We sure don't want that happening to you.

It is very true that many people don't want to do anything which ends up its a norm for loan officer being sneaky, as more than one friends told me: it is always like that, no matter where do you do your loans, just move on... I was careful at the beginning to make sure everything in writing, but still, at the end, numbers can change and there is nothing you can do about it...

OK, before I get contagious to misspell anything Here is the update:
Today, the supervisor of the loan officer called me, apparently she heard from corporate about my letter of complaint. She said because is a late Fri pm and I signed on Sat, so she dit get to see the numbers before I sign the paperwork. She said the change in numbers is because of the calculation from the title company. She asked me why I went to the title company to sign on a Sat instead of waiting till this week (what a great question!). I told her how the loan officer pushed me saying we need to rush for the closing date, sod that to me. Anyway, she said the corporate is going to get me a check of $104 (the difference between $755 and 651) (Yeah!!), and she apologized for what I gone thru, she said it is not their culture of doing things, and she will talk to the loan officer about that.

I actually sent the supervisor an email afterwards talking about the attitude of the loan officer. He said ilication experience has been painful (I cancelled one loan application before this one as the loan officer was rude and dishonest). However, I get to know this forum and you guys which is very heart lightening.

Thanks again!