Home Buying in 85339>Question Details

zorilash, Home Owner in 94404

Refinancing application

Asked by zorilash, 94404 Sun Nov 25, 2012

I got locked in rate 3 weeks ago, Chase bank charge me $450 w/o explanation what is a fee, the other loan officer from different branch explained that this is application fee. Never got GFE, nothing, even no copies of papers that I sign, never explained to me GFE. Have disagreement for closing cost (want to see everything in writing).1)Can I schedule my appoit for appraisal? Or wait until I will see all #'s in writing? 2)Is it violation of law if I didn't get any papers - GFE , nothing? #3) If they not reply in writng for closing cost or I will have disagreement can I cancel everything and get my money back?

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Hi Zorilash,

Yes, Chase actually is in violation of the Mortgage Disclosure Improvement Act or MDIA.

1) A creditor must mail or deliver good faith estimates of the TILA disclosures for all dwelling-secured mortgage loans subject to the Real Estate Settlement Procedures Act no later than three business days (general definition) after the day on which the creditor receives a consumer’s application.

2) A creditor may not impose a fee (other than for obtaining a consumer’s credit history) before the consumer receives the early disclosures. If a creditor places early disclosures in the mail, the consumer is deemed to receive them three business days (precise definition) after they are mailed, and the creditor may impose the fee after the end of the third business day. The creditor need not rely on this presumption if the consumer actually received the disclosures earlier.

So you can either cancel your application and threaten Chase for violating the MDIA in attempt to get your money back and start over with a lender that will follow the law or you can continue working with Chase.
1 vote Thank Flag Link Tue Nov 27, 2012
They can charge you a credit check fee up-front, however it must be a reasonable amount, which $450 certainly is not. What they may have charged you for is the cost of the appraisal, which they often do up-front.
Are you sure they locked in your rate? If so, for how long? If you have not gotten the disclosures that John has described below, they are in violation if they collected the money from you, so you have a few questions that need answering here. Have you provided them with the necessary information to process your mortgage application? Have you spoken to the loan officer to ask where the disclosures are? You should definitely get more information from them about costs, although the GFE can have some inflated numbers on it, the important thing is the rate, and the costs that are listed in section A, as well as the cost of the appraisal and any other minor bank fees that are often not listed in A, such as tax service, flood certificate, and credit report. We include those in our box A, but many lenders don't. What is now called the origination charge is what used to be application, underwriting, commitment, doc prep, all sorts of bank fees that used to be itemized differently.
0 votes Thank Flag Link Tue Nov 27, 2012
I wouldn't count on getting any money back:
The $450 includes the cost of a Credit Check.
Everyone will have some pre-charges; maybe as little as $50.
They may be guilty of not communicating well with you; but you didn't ask the right questions.
Federal Law is pretty strict on them; but you have to be the watchdog, no one will do it for you.
Yes, they MUST give you a GFE.

You may want to get 1 or 2 more; it will probably be worth it.
We, on Trulia, can probably help with referrals or figures (There are a lot of Mortgage people on Trulia).

Good luck and may God bless
0 votes Thank Flag Link Sun Nov 25, 2012
What that mean "YOU MAY WANT TO GET 1 OR 2 MORE; it will probably worth it." I was very clear w/them that I want to pay my closing separate don't include in loan, but he told me that I will get rebate on closing cost, it was a lie b/c he increase my rate w/o explaining to me (what rebate mean). The reason we have disagreement w/closing cost. Can I schedule my appoit for appraisal or wait until I will get a clear answer on my closing and after that do appraisal?
Flag Sun Nov 25, 2012
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