U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 12-19-2008, 12:37 AM
 
200 posts, read 889,040 times
Reputation: 115

Advertisements

Our mortgage lender at the bank has been working with us on refinancing. She's been sending us Good Faith Estimates (GFEs) over the past couple of weeks.

We liked the rates we saw today and locked in. She sent over a new GFE.

Between yesterday and today, the estimated closing costs jumped from $2624 yesterday to $6513!!!

She said something about a "computer glitch".

This is a very reputable bank and a very respected broker.

How "good" and how much "faith" can one expect of a Good Faith Estimate?

Do we have any recourse?
Reply With Quote Quick reply to this message

 
Old 12-19-2008, 01:47 AM
 
Location: Plano, Texas
1,676 posts, read 6,357,362 times
Reputation: 686
It is called a good faith estimate and not a good faith exact. People make mistakes, so that might be the case here.
Reply With Quote Quick reply to this message
 
Old 12-19-2008, 03:03 AM
 
200 posts, read 889,040 times
Reputation: 115
Default Good Faith Esimates (How Much Faith?)

I agree, everyone makes mistakes. Nobody's perfect.

But, the same mistake on 8 different GFEs? (We were tracking the market as rates came down).

We jumped to refinance based on the GFEs only to find out later there was an error of almost $4000.

Simple mistake? Computer programming glitch? Or professional incompetence?
Reply With Quote Quick reply to this message
 
Old 12-19-2008, 06:22 AM
 
16,758 posts, read 19,046,573 times
Reputation: 6849
Depends on how much your home costs, it might be a rip off with a lot of padded costs so the company makes more money... besides, what are there closing costs when you are refinancing with the same lender of your mortgage... I thought its not really "refinancing" but more of renegotiating the original loan terms which would mean no closing costs... right?
Reply With Quote Quick reply to this message
 
Old 12-19-2008, 09:07 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,137,940 times
Reputation: 1008
computer glitch?

Just compare the forms to see what new fees have been added on the 800 lines.

If it's a glitch then ask her/him for a new one
Reply With Quote Quick reply to this message
 
Old 12-20-2008, 09:48 AM
 
Location: Spring Hill, Florida
58 posts, read 183,629 times
Reputation: 18
Globalnomad,

GFE doesn't sound like good faith in this case but more like greed for, a 1% origination fee is all you should see on a refi., and you should get 3.5% if you have a FICO of 700 or better; after all isn't that what this $700-plus billion is supposed to be doing---helping homeowners and not BANKS!

Keith G.
Reply With Quote Quick reply to this message
 
Old 12-20-2008, 10:09 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,137,940 times
Reputation: 1008
3.5%? I would be careful with this post as some lenders will introduce you to an option arm with this rate.


Quote:
Originally Posted by Keith G View Post
Globalnomad,

GFE doesn't sound like good faith in this case but more like greed for, a 1% origination fee is all you should see on a refi., and you should get 3.5% if you have a FICO of 700 or better; after all isn't that what this $700-plus billion is supposed to be doing---helping homeowners and not BANKS!

Keith G.
Reply With Quote Quick reply to this message
 
Old 12-20-2008, 10:40 AM
 
Location: MID ATLANTIC
7,624 posts, read 17,780,469 times
Reputation: 8149
That's a whole lot of dollars for a computer glitch. If she is holding you to a lock based on a faulty GFE, I would make lots of noises if you want out of the lock. Don't wait until Jan 1, but do it on Monday.

I am the first to say mistakes happen. But you should not be expected to honor your decision based on a computer glitch. Make sure you want out of the lock and then scream.
Reply With Quote Quick reply to this message
 
Old 12-20-2008, 04:55 PM
 
Location: Plano, Texas
1,676 posts, read 6,357,362 times
Reputation: 686
Rates are no where near 3.5%.

i would suggest that you let this loan officer know you wish to cancel the entire transaction, then find a more professional loan officer to assist you.
Reply With Quote Quick reply to this message
 
Old 12-21-2008, 07:07 AM
 
Location: MID ATLANTIC
7,624 posts, read 17,780,469 times
Reputation: 8149
The OP never mentioned 3.5%.

It's real easy for us to critique something we know really nothing about. For all we know she had something like FHA MIP in the wrong place.

But chances are you have a serious complaint, especially if you locked or handed over one dime. There are at least 1/2 dozen lenders here, any one of us would be happy to review them and offer opinions. And at the very least, provide you specific questions to ask your lender.

(and if you are senior citizens, please get a review - I am finding seniors are taken advantage of more than any other group of borrower)
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top