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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127236  
Subject: Re: Mortgage Broker Tricks? Date: 1/26/2002 5:07 PM
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Hi Don,

The next day the broker called and told me "Congratulations, your loan has been approved at the rate we talked about.

I notice you recall him telling you that your were APPROVED AT the rate you talked about... and you probably were. THat doesn't mean your rate was LOCKED... AND it doesn't necessarily mena your rate WASN'T LOCKED either... read on...

Where the problem comes in is, once the appraisal etc was done the broker called and told me that the appraisal was fine and that rates had went up, but ours were locked in and we would be closing as soon as the abstract was finished.

So... now he's told you that you are locked... great! Hopefully you have an email or letter from him to this effect...

That very same day I got some disclosure papers from the actual lender and the rate was almost 1% higher! My question is, when was my rate locked?

Of course, we can't tell you when your loan was actually locked... you'll have to get that from your broker and/or lender...

HOWEVER...

I see something here that happens ALL the time;

The disclosures you got in the mail were from the LENDER, not the broker. These disclosures are a rush-thing the lenders do to be in regulatory compliznce. If you read the disclosure properly, you'll see they weasel everywhere about being ESTIMATES, exactly like the disclosures you signed with your broker before you were locked.

The lenders NOTORIOUSLY send their disclosures with numbers so far out of whack it's a joke. They're not MEANT to be taken seriously as far as the numbers... they're JUST DISCLOSURES. Read it again carefully... there is nothing legally binding in any of it.

Furthermore, the lender's disclosures say "sign & return," but you can ignore them if you already did them with your broker.

These are JUST PAPER MASTERBATION (ouch! Excuse the term.) A product of a litigious society that forces business to kill trees beyond necessity to CYA. You've already signed the important stuff... this set of disclosures are meaningless.

DO double check to make sure you have something in writing about your rate locks. My guess is your broker did what he said he did.

He shoulda/coulda also prepared you for the additional package of meaningless disclosures from the wholesale lender... but even I forget to warn my borrowers sometimes.

KEEP BREATHING! You're most likely fine!

Cheers,
Dave Donhoff
Foolish Mortgage Broker
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