Does this sound fair?

[Anonymous]

I was going to close a week ago but things got delayed (not because of us). Premiums changed and now it will require an extension. New closing will be in ~10 days. The LO says it has not been an easy journey so she wants to charge 1 point (1% of the loan). Does this sound fair?

[happy0510]

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@Anonymous wrote:

I was going to close a week ago but things got delayed (not because of us). Premiums changed and now it will require an extension. New closing will be in ~10 days. The LO says it has not been an easy journey so she wants to charge 1 point (1% of the loan). Does this sound fair?

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Wow....IMO absolutely not!! How dare your LO ask that!  Basically your LO is saying they don't like their job and want you to give them a bonus!  For all you know, they could be in debt or something and need you to bail them out.  No way...I would threaten to walk.  Talk to your Agent and let them know what is going on!!

[BrianB_The_Loan_Professor]

what changed? and did you have your rate locked?

[Anonymous]

If you are on a rate lock, then there may be some charges to extended that rate lock.  I do not know how much that would be.  1 point sounds high.  If the LO is just saying things are taking longer then normal,then no, there should not be a charge for you ust to extend closing.

Now, if there have been problems with your file that were not the lenders fault (i.e non disclosure on your part or the sellers part) that maybe changed the program you were using or was going to require extensive work on their part to get an approval, then maybe some additonal fees would be acceptable.  

that said, if nothing came from your end I would say no way.  If something happened from the sellers end that had the deal messed up and casued this then they should eat any added charges.  If the holdup was from your lender they should not be charging for it.  If on the off chance it was something on your end that caused it then it becomes more tricky (i.e credit changes, undisclosed info coming up, stuff not filed quickly enough).

In general though ti sounds like a bit of a scam.  It is ust hard to know for sure what the situation is since we are not looking at the file or prvy to more detailed info. 

[soxcited]

We had similar issues. Nothing came from our end. There were delays in getting updated insurance and budget issues. The original loan was with 10% down but we could not get PMI so the loan had to be changed to 20% down. To help us out sellers aggreed to increased their contribution so new P&S had to be rewritten. And we were charged 1 point. Do you still think it is too high?  

[BrianB_The_Loan_Professor]

soxcited - it is hard to say in your case

an 80% loan with no PMI represents more risk to a bank than a 90% with so there could have been some adjustment

and definitly a change of circumstance to allow  for the lender to make changes

Not saying 1 point was fair as it does sound too high

but again we really dont know enough detail to judge

Brian