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Old 03-15-2012, 05:35 PM
 
6 posts, read 9,643 times
Reputation: 10

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I terminated a contract on a home and did not close on the home. The loan officer says I owe a loan origination fee for the processing of the loan. I did sign a broker/borrower agreement stating that I would pay fees at or prior to closing loan. However, the only fees that were indicated that I would pay outside of closing were appraisal and credit report. He did not disclose to me that I would be responsible for the loan origination fee regardless of the outcome of the loan. Also, the form that outlines how he would be compensated was blank and did not break down any fees. Do I owe him?
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Old 03-15-2012, 05:44 PM
 
2,277 posts, read 3,962,366 times
Reputation: 1920
What!? That's crazy. I certainly hope it's not true. I always thought the origination fee was the banks way of getting some money for habding out a bung of it rather than a strict paperwork fee. Given that, if they didn't give you money then they shouldn't get their fee. But of course this is wild speculation. I hope the re agents weigh in on this one because it sounds ridiculous.
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Old 03-15-2012, 07:02 PM
 
702 posts, read 1,237,462 times
Reputation: 463
Since you terminated the contract, does that mean you lose your deposit money?
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Old 03-15-2012, 07:11 PM
 
6 posts, read 9,643 times
Reputation: 10
Yes I lose my earnest money.
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Old 03-16-2012, 06:34 AM
 
237 posts, read 648,832 times
Reputation: 155
They should have collected the origination fee...at origination! Not after the fact
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Old 03-16-2012, 06:52 AM
 
Location: TX
2,019 posts, read 3,525,424 times
Reputation: 2183
If there was no loan originated, how can there be an origination fee to collect? This sounds shady to me. However, if there was an appraisal done I can understand them asking you to pay for the appraisal.
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Old 03-16-2012, 09:17 AM
 
6 posts, read 9,643 times
Reputation: 10
I already paid for appraisal and credit report. I was a week and a half from closing.
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Old 03-16-2012, 10:08 AM
 
Location: Pearland
799 posts, read 2,442,262 times
Reputation: 696
Who is the loan officer, and what is the name of the mortgage company? This should be on the news. Ive been out of the mortgage business for about six or seven years, but that is the worst thing I have ever heard.
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Old 03-16-2012, 11:00 AM
 
Location: Eastend
173 posts, read 411,751 times
Reputation: 120
No dont pay them anything. Look up some of my old post about this. Long story short WF took my check I wrote for PENDING appraisal fee. Did not close appraisal NOT completed, WF cashed check and said it was for Loan Fees. Fees i was told in the beginning DID NOT EXSIST. Long fight for a fews months went to comptroller to get my money back. yes shady. do not pay them anything. Was appraisal done?
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Old 03-16-2012, 11:43 AM
 
Location: The Greater Houston Metro Area
9,053 posts, read 17,204,558 times
Reputation: 15226
No, there was no loan - so no loan origination. Some charge an application fee (you paid that when you mentioned the credit report).

I am hearing horror stories about the big banks now, concerning funny (and large) fees.
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