You can speak ill,
You can smite,
You rant and rave,
You can talk about them in the line at the supermarket,
You can tell your story to Baba Walters,
But you cannot sue them; because you have suffered no financial loss.
This is not meant to be legal advice, I wouldn't deign to do that.
You waited two months, not even Bank of America is that slow in underwriting. Your option would be to withdraw your loan application for a mortgage in "writing" and start over with a new lender. If you loan
is a FHA loan "DO NOT" wait for the loan to be rejected. Once a FHA loan is rejected or declined starting over again with a new lender can be problematic.
Your best case scenario is to have your file assigned to a new lender but our present lender may want compensation to release your mortgage file to a new lender.
RE/Max Realty Group
Yes you have recourse. FIRE THEM! They have either taken your loan knowing it wasn't viable, or are so inept that can't get it closed in over 90 days (presumably your closing date was 30 days from contract date). I have a great local lender you can call for advice. Pete O'Donnell at First Home Mortgage (410) 299-2043. He'll give you straight answers. Best of luck to you.
No bank is obligated to loan money. The "pre-approval" is a promise to loan when all the conditions they require are met. Apparently, the lender is not satisfied that those conditions have been met.
Your options would be to continue to work with this lender and ask the questions, "what more can they want?" Or start from scratch with a new lender.
Without knowing why things have been delayed this long, I can't tell you which would be the best in your case.