Financing in Huffman>Question Details

Refinanceblu…, Home Buyer in Huffman, TX

Doesn't my mortgage broker have to honor our rate lock agreement?

Asked by Refinanceblues, Huffman, TX Sat Jun 13, 2009

on May 26 we signed paperwork for a loan and locked in an interest rate of 4.625 our loan has been approved and the appraisal was done and on June 12 our mortgage broker sent us email stating that he is sorry he thought that he locked in our rate but somehow he must not have because he was informed by the bank that it is not locked in he said that he accepts full responsibility and he is very sorry but somehow he did not lock in our rate. Now the interest rate has climbed to 5.5% my suggestion to him was that he needed to fix his error and honor our contracted 4.625% rate he says that he is very sorry takes full responsibility for his error but that he will not buy down the rate the difference in interest over 30 years is 26,000 dollars and it is about 80 dollars more a month. Help what is my recourse

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3
The same thing just happened to me. I was promised a rate of 4.5% and a month later I got an e-mail from my broker stating that he forgot to lock the rate and the same thing happened to a friend of mine who I referred to him. His mistake or lie is costing me $300/mo for the next 30 years.

If you figure anything out let me know.

saraandmatt@mac.com
1 vote Thank Flag Link Mon Jun 15, 2009
Hello,

Unfortunately you don't have much recourse. You can report the lender to the BBB but not much else. You'd be amazed at how often this happens. The problem is that many brokers only lock loans for 5 or 15 days because they make more commission than a 30-day lock, so even if he did so your lock may have expired. One of three things likely happened:

1) he never locked the rate to begin with because he couldn't get a rate as good as he quoted.
2) he really did make a mistake.
3) he locked you for a short period of time and it expired.

Do you have any written communication from him on the quoted rate? Maybe you can appeal to his higher-ups? Sorry this happened to you.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
1 vote Thank Flag Link Mon Jun 15, 2009
I would suggest taking a more long term perspective. See what you can negotiate for now. Then look toward the future. He should be able to do a re-fi for you when rates drop again (at not cost to you). This just happened to a client of mine and it is no fun.
0 votes Thank Flag Link Mon Jun 15, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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