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now I am convinced they just dragged it on until they could find a way out because they didn't want to give us that rate.

Why wouldn't Amerisave want to give you that rate? They're not the investor behind the rate. Amerisave couldn't care less about what rate you get. They're going to sell the loan within days of funding it. They bought the sack of money for $X and they're going to sell it to Fannie Mae or Freddie Mac for $Y. Sorry to say, a complete misunderstanding of the market for mortgage bonds is behind your angst. This article may help you understand.

Where Your Mortgage Check Ends Up : Thanks to the secondary mortgage market, your mortgage can go halfway around the world and fund still more home loans.

If Amerisave said they didn't "get" your "twin home"--whatever that is--that's what they mean. They don't go through all the work and expense of processing and underwriting your loan only to deny it. For some reason--likely legitimate--they're nervous that your loan won't pass muster by Fannie/Freddie and they'll have to "buy back" your loan, which is bad news for lenders.

Burdened by Old Mortgages, Banks Are Slow to Lend Now

The two mortgage giants [Fannie Mae and Freddie Mac] have been forcing banks to take back an increasing number of loans that the banks made during the boom years and sold to Fannie and Freddie. To protect themselves from such demands in the future, banks are ratcheting up credit and documentation standards for new mortgages.

"Mortgage credit is tighter than it should be," said Treasury Secretary Timothy Geithner at a Senate hearing in July. "And the main reason for that is because banks…feel much more vulnerable now to what people call 'put-back.'" [also called "buy back"]

This play-it-safe stance by banks threatens to undercut the Federal Reserve's latest effort to push down mortgage rates by buying up mortgage-backed securities. Even if rates keep falling, many people will find it much harder to take advantage.

The so called Wall Street Reform and Consumer Protection Act (a/k/a Dodd-Frank Act) was signed into federal law by President Baracky Owebama on July 21, 2010. If you voted for him, you've got only yourself to blame for your current dilemma. If you didn't vote for him, I'm sorry for your situation, but your loan didn't fail for the reasons you think.
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