Refinancer
08-21-2010, 08:58 AM
I started looking into refinancing last week because of the low interest rate. I am a consumer with credit score of 800 and above. Found few mortgage brokers through Lendingtree, asked for Good Faith Estimates (GFE), Initial fees worksheet, Truth-In Lending, and compared their rates, APR, origination fee, and closing cost. Then, checked their reviews through BBB, Google, etc. Three of the brokers offered the same interest rate. Finally, I made my decision and went with the broker that offers the lowest APR and closing cost. I was pretty happy when I made the decision on 8/18/10 because I got a low interest rate, low APR, and low closing cost.
I signed the Truth-In Lending Disclosure Statement, Uniform Residential Loan Application, etc. Sent broker my W2, pay stubs, bank statements, and 1040 on 8/19/10.
Received lender's initial disclosure on 8/20/10 (Friday). Origination fee stated on the lender's initial disclosure GFE increased about $400 on the first initial disclosure from the lender. The APR on the GFE also jumped up 0.19%. Called and emailed broker, and he said he would take care of it. That afternoon, broker ordered title search and insurance. Received the invoice for about $1,000 for title which is few dollars more than title cost stated on the GFE, so I am OK with title fee.
8/21/10 (Saturday) morning received another disclosure from the lender's automated email to notify me that the term of the loan has been changed. The GFE in this disclosure stated the origination fee increased about another $400 because the credit given has reduced. Interest rate remained the same, but APR went up 0.2% from the original APR on 8/18/10. Adjusted origination fee increased about $800 compared to the GFE provided to me on 8/18/10. One critical thing I did notice is the date for the Important Dates #1 on the GFE has changed compared to all the previous GFE I received from the broker. This second disclosure GFE has a future date of 9/20/10 whereas all the previous GFE have the same dates as the broker sent me. And the latest GFE reads as follow:
1. The interest rate for this GFE is available through 9/20/10. After this time, the interest rate, some of your loan origination charges, and the monthly payment shown below can change until you lock your interest rate.
Questions:
1. If GFE can keep changing during the loan process, then what is the point of having a GFE? Is it legal for the lender/broker to keep changing the GFE?
2. I have not received rate lock confirmation, does it mean that the interest rate, origination fee still can change again (at least this is what stated on the GFE)?
3. I signed a Certification of Receipt of GFE and Intent to Proceed on 8/18/10 and Acknowledgement of Good Faith Estimate on 8/18/10 stated I have received only one GFE from the broker. But I have received two more GFE which have higher origination fees from the lender's disclosure notification. I feel like I have been cheated. Can I request rectification on the GFE to reflect the originatioin cost that I agreed on? How do I resolve this?
4. I feel that the broker is not being upfront with me by increase the origination fee again and again through the process. I do not want to breach my agreement with the broker if he keeps the origination fee as our agreement. But if he changed the original fee and not honored what he promised, I want to know what is my option now. Does anyone know what is my options at this point? I have not paid a single cent, but the broker had ordered title search and title insurance on my behalf that cost about $1,000 as of this moment.
Thanks.
I signed the Truth-In Lending Disclosure Statement, Uniform Residential Loan Application, etc. Sent broker my W2, pay stubs, bank statements, and 1040 on 8/19/10.
Received lender's initial disclosure on 8/20/10 (Friday). Origination fee stated on the lender's initial disclosure GFE increased about $400 on the first initial disclosure from the lender. The APR on the GFE also jumped up 0.19%. Called and emailed broker, and he said he would take care of it. That afternoon, broker ordered title search and insurance. Received the invoice for about $1,000 for title which is few dollars more than title cost stated on the GFE, so I am OK with title fee.
8/21/10 (Saturday) morning received another disclosure from the lender's automated email to notify me that the term of the loan has been changed. The GFE in this disclosure stated the origination fee increased about another $400 because the credit given has reduced. Interest rate remained the same, but APR went up 0.2% from the original APR on 8/18/10. Adjusted origination fee increased about $800 compared to the GFE provided to me on 8/18/10. One critical thing I did notice is the date for the Important Dates #1 on the GFE has changed compared to all the previous GFE I received from the broker. This second disclosure GFE has a future date of 9/20/10 whereas all the previous GFE have the same dates as the broker sent me. And the latest GFE reads as follow:
1. The interest rate for this GFE is available through 9/20/10. After this time, the interest rate, some of your loan origination charges, and the monthly payment shown below can change until you lock your interest rate.
Questions:
1. If GFE can keep changing during the loan process, then what is the point of having a GFE? Is it legal for the lender/broker to keep changing the GFE?
2. I have not received rate lock confirmation, does it mean that the interest rate, origination fee still can change again (at least this is what stated on the GFE)?
3. I signed a Certification of Receipt of GFE and Intent to Proceed on 8/18/10 and Acknowledgement of Good Faith Estimate on 8/18/10 stated I have received only one GFE from the broker. But I have received two more GFE which have higher origination fees from the lender's disclosure notification. I feel like I have been cheated. Can I request rectification on the GFE to reflect the originatioin cost that I agreed on? How do I resolve this?
4. I feel that the broker is not being upfront with me by increase the origination fee again and again through the process. I do not want to breach my agreement with the broker if he keeps the origination fee as our agreement. But if he changed the original fee and not honored what he promised, I want to know what is my option now. Does anyone know what is my options at this point? I have not paid a single cent, but the broker had ordered title search and title insurance on my behalf that cost about $1,000 as of this moment.
Thanks.