Bank/Mortgage Companies Laws?

Discussion in 'Credit Talk' started by Positive, Sep 27, 2001.

  1. Positive

    Positive Member

    Do bank and mortgage companies have to follow any laws reagrding lending, etc? I applied for a mortgage at my local hometown bank EASTER weekend. The guy said it all looked great and to go ahead and start building our house. Meanwhile, the banker chick decides that she would get me a better rate by going through this mortgage company that they use. Sure, I said. SEVERAL weeks later... nothing... months later... nothing. Then they tell me that I have been "desktop" approved and I will just need to present these three documants to get a closing date. I do. I wait. I call and talk to a voice mail for weeks. I am helpless. I talk to the banker. She keeps assuring that it is fine and we are at the end. Then, she just decides to do an "in house" loan and tells the mortgage company to forget it. HUH? Now, she is telling me that she just is getting it through and she has sent my loan to another bank two days ago. HUH?

    Can banks just send my loan info to other banks when they don't want to do it? Isn't that breaking some confidential agreement or something?

    Is there not some type of time limit on how long they can process loans?

    What should I do now?

    All advice is appreciated!! Thanks in advance!
  2. lbrown59

    lbrown59 Well-Known Member

    Can any one help this person out/
  3. tom65432

    tom65432 Well-Known Member

    Here are a couple ideas.

    What you signed will control what they can do. Most banks have affiliated mortgage brokers so they will shop the loan. But, look at your agreement and see what it says. Remember, by shopping, they are trying to get you a lower rate or better terms. Lenders are picky and will only do some types of loans. For example, one lender may have a policy of no bankruptcy (ever). Another will lend to you if your bankruptcy is over two years old. So, a good broker can really help you. The problem is when you get a bad broker who shops your loan, hoping to find someone who will finance it. A good broker knows the lenders and will present your package to a lender who will fund it.

    Keep checking in today with this board. There is at least one mortgage broker who posts on a regular basis and can be more helpful.. It is kind of slow right now and will be until later this afternoon. It picks up in the late afternoon.

    There are regulators in each state if you get shafted. But don't complain until you see if it goes through.

    I dealt with the same thing on my home loan two years ago. The mortgage broker did not know until the last minute who would actually fund the loan. It all worked out.

    Like I said, your real worry is that you may have gotten a broker (or banker) who does not know the market and is trying to place your loan. It sounds like you may have found one. You should have a committment by now.
  4. roni

    roni Well-Known Member

    You're the customer. You have options. You should have talked with a manager when you were having problems or walk the business to someone who is interested in making the loan.

    In addition to state banking laws, they're also goverened by federal equal lending acts that you can find at

    But why bother with all the trouble of forcing them to do the correct way. Walk the business to someone who is.........
  5. breeze

    breeze Well-Known Member

    Good advice!! There are mortgage and real estate professionals who post on this board. Wait for them.

  6. tom65432

    tom65432 Well-Known Member

    Be careful before you take your business elsehere. You may have signed some paperwork giving them exclusive rights. I know one broker who makes a living doing this. She promises anything to get the agreement signed but the deal always comes back 18% interest plus 10 points plus 10% broker fees plua other costs. On a $10,000 loan, the client walks away with $7500. When the client balks, her husband (a lawyer) sues for breech of agreement.

    Plus, they could also put a ding on your credit report for failure to pay their fees. Just be careful you read what you signed before you go elsewhere.

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