Bad Faith Estimate

[Anonymous]

I am under contract on a home and I chose a lender based on a rate quote he claimed I would be locked in at once I applied.  I've had phone conversations with him and two emails where he used the words locked in and there is no doubt he knew I expected my rate was set.  Now, less than 30 days later, 13 days from an extended closing and 17 days from the end of the tax credit's ending, he says he doesn't know why I thought I was locked in and rates are fluctuating around 5%, up and down.  Is this crap even legal?  I want to report him to someone or something...  I can't believe I dismissed a potential lender based on a cost that he never even intended to honor.  What I don't get is this; if the 60 day 30-year commitment was 4.77 the day I applied and it's 4.79 today, why would my rate fluctuate nearly .5 from what I was quoted 27 days ago?  Does anyone else see the where this is dishonest and do I have recourse?  Considering the timeline, what are my options?  If anyone can answer, I would greatly appreciate it.

Thank you,

Mac 

[Anonymous]

In order to lock a rate you should try and get somethign in writing I don't believe it is possible to lock a rate by just talking over the phone. It's unfortunate that your LO led you to believe your rate was locked, but unless you get something in writing rates are bound to change especially over a month of time. Rates were below 5% on average a few weeks ago, but they've gone up in the past couple of weeks. Not sure what the future holds though.

Message Edited by kdoggflog01 on 10-23-2009 08:57 AM

[Anonymous]

I was able to lock in my rate via email.

But to make sure, they asked me to put in the email, I would like to lock in at 5%.

[Lel]

This was a few years back, but when it was time for me to lock a rate, I received verbal confirmation that was followed up with an email message.  I don't recall signing anything.  But the rules may have changed.

You mentioned that you have emails from the loan officer.  What exactly do these emails say?  The description of the lock should be pretty specific - the rate, points, expiration, etc.

[Anonymous]

Thats interesting... I had to sign some rate lock form plus an updated GFE and TIL because my origination fee was decreased.

Message Edited by kdoggflog01 on 10-23-2009 08:53 AM

[DallasLoanGuy]

1. tell lo that you want the rate quoted. Supply the emails showing you were locked.

2. If that doesn't do it.... call the lo's boss

3. Regardless of the outcom, report this bait & switcher to the agency who regulates los in that state,.

[ShanetheMortgageMan]

Since you have it in email, and since the loan officer has balked on the promise made in the email, approach their supervisor and complain.

http://federalreserve.gov/pubs/lockins/default.htm 

Shopping based on interest rates is almost always going to end up in a disaster because the only way that a loan officer can satisfy someone who is solely shopping on interest rates is by quoting a rate lower than everyone else is - and they know that, so the only way to get your business is to tell you that lower rate, and unless you are ready to lock in that day (which people who are purchasing a home hardly ever are) that rate may or may not even exist.  The correct way to shop for a loan officer is to judge the person on their character, morals, ethics and if the person was referred to you or had a good reputation in the first place.  That type of loan officer will most likely not screw you on terms of interest rates, fees, keeping you informed about the process, and all the extremely important skills (such as communication) that you are expecting from your loan officer.