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Old 04-20-2013, 03:48 PM
 
2 posts, read 5,355 times
Reputation: 10

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I found out that my mortgage institution changed my loan type. They changed it after 8 years from a conventional fixed to an FHA fixed. I was not informed, in any way, about this change.
Additionally, after finding out because I keep tabs on my own account, I realized that FHA just changed certain laws. Was a legal change that was made concerning my original loan. The change would now allow the mortgage company to change rates and charge FHA fees. I have great credit. What can I legally do to about this situation?
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Old 04-20-2013, 03:51 PM
 
Location: Austin
7,205 posts, read 18,940,045 times
Reputation: 9808
Your loan cannot change unless YOU change it. Did you do a refinance? When your loan is sold from company to company, your loan and terms always remain the same.
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Old 04-20-2013, 03:53 PM
 
2 posts, read 5,355 times
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No, I did not do a refinance and the loan is still with the original mortgage institution! Tks for response.
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Old 04-21-2013, 08:36 AM
 
4,787 posts, read 10,019,504 times
Reputation: 12686
If this is truly what happened, then it is illegal. You cannot change a loan type once the loan is closed, unless you refinanced.

What you do now is contact your lender via phone, followed up by a certified letter ( which you also a retain a copy for your files), asking them what is going on. Keep notes on the date and time you called, and get the name of the person you spoke to. Document anyone you talk to, keep a file with all paperwork, contact info, etc.

if you don't quickly get a response to your satisfaction, then you can also contact HUD/ FHA at Locating New Page..... Be prepared to have your original loan info, plus you'll also need the FHA case number now assigned to your loan ( the loan number will start with 061 followed by several more numbers ).

If the lender won't give you a response that makes sense, you can also contact your state banking commission.
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Old 04-21-2013, 08:47 AM
 
4,567 posts, read 9,087,521 times
Reputation: 6661
Before you call anyone, pull out your loan documents that you signed. Read them. See if there are any riders or language that says they were going to do this on this date. It may be somewhere on the 20 pages you signed for the mortgage.
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Old 04-21-2013, 01:31 PM
 
3,806 posts, read 8,252,585 times
Reputation: 4938
It didn't happen.

Mark through your name and SS#, and post the Mortgage Note, or Settlement Statement, or another key closing document, and then also post your most recent "statement" or whatever, that says it's FHA.
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Old 04-22-2013, 05:58 AM
 
Location: MID ATLANTIC
8,137 posts, read 19,986,041 times
Reputation: 9377
There are just too many required FHA forms that require signature before "changing" a loan type. This should cost you minimal for an attorney to request those required documents (and only because the response time should be better with a formal request). I would not mess around and try to do this yourself if you really believe this to be the case. Of course, it's not easy to suddenly close on an FHA loan, so you were either sound asleep or high as a kite for much of the document signing.
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Old 04-23-2013, 10:32 AM
 
Location: SF Bay Area
1,290 posts, read 1,850,979 times
Reputation: 816
This is insane. Never heard of this happening before.
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Old 04-29-2013, 12:37 PM
 
Location: New York
2,251 posts, read 4,487,788 times
Reputation: 1610
I agree with the above, your conventional loan cannot auto automatically change to an FHA loan. Need more information.....

I recently had a situation with a borrower in Georgia, having a mortgage through Countrywide/BOA. Looking at their original C.W. loan note, showed an non-conventional interest-only loan at 90% financing. Being charged PMI. Another form - the payment history showed FHA M/I payments. I questioned this to one of the BOA litigators, was informed that's how BOA shows mortgage interest payments.

This is what you need to do -

Look at your closing documents to confirm the type and loan term's of your loan (ask your lender to send you a copy of your loan note) including your payment history. This takes an average of 30 days to receive.

Then write a letter to have your loan reviewed, asking the question why your loan terms changed from conventional to FHA.

..
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