After going through another week of ridiculous actions from various lenders, I am decided to add a new category to my blog detailing this. I am calling it Banks Bad Behavior and hope that readers will add their comments to this section. At a minimum, it will be a good place to vent. Hopefully, the comments will solve some of our readers problems and help others avoid them in the future.
So today, with so many to choose from, I will start with some recent favorites. To avoid disparaging any specific lender, and so that my mortage company can continue to do business with them, I will avoid mentioning the names of the lenders involved. However, in your comments, there is no reason for you to be so restrained.
On Tuesday, we received a call from the lender about a refinance that was scheduled to close on Wednesday. We were told that the loan would not be able to close because we disclosed the loan with an interest rate of 5% and the borrower paying 1 point. but now the borrower was paying 0 points for the same loan! Since rates went down between the time of intial disclosure and closing we were able to give the client the same rate with 0 points! We explained that the change was better and benefitted the borrower but the lender would not accept that claiming any change requires that a new Good Faith Estimate be issued and 7 days pass after that before closing. The problem was the the borrower’s rate lock was expiring on Wednesday so we had to close that day. As a result, we closed the loan with the borrower paying 1 point and we refunded it to him after the closing!