Financing in Houston>Question Details

Brandi, Other/Just Looking in Houston, TX

In order to lock in a refi rate with the lender they required a good faith deposit.

Asked by Brandi, Houston, TX Tue Aug 14, 2012

A month later, after providing them with all requested documentation they said they would not approve my loan unless I could get the tenants to sign an addendum which states they basically waive any and all rights to the property. It was a broadly worded addendum. I would not sign it if I were them and they did not sign it. Now the lender has denied my refi and will not refund my good faith deposit that they required to lock in my loan rate. I feel it is deceptive for them to not tell me up front this form would be required to be signed by my tenants. The lender told me 95% of their refi's for rental property require that form to be signed. Does anyone have any suggestions with how to proceed? FYI, I have very good credit, score of 760 , no late payments, steady job and income and provided all other documentation they required.

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Basically you got took. A lender is not allowed to collect any fees what so ever up front per RESPA. I would file a complaint and try to seek help that way. Give me a call and we can go over the matter better over the phone.
0 votes Thank Flag Link Tue Aug 14, 2012
Hi Brandi,

Never pay to lock your loan. The only fee I collect for and this is after the process is started is for the appraisal. That fee is paid by the borrower when we are allowed to order it per RESPA guidelines. The only upfront fee you can collect for is a credit report and I do not charge clients upfront for a credit report. Some lenders do.

The lender request is also very strange. I have never had a client of mine be required to have a tenant sign such a form. If you would like a GFE of what i can do for you please give me a call or email me anytime. You seem to be dealing with a lender who has some very crazy guidelines. I would just walk away and get some other options because while lending is not like it used to be they are making the entire process a lot harder than it needs to be.

Best of luck to you,

Don Groff
REALTOR® | Mortgage Broker
Austin Listed | 360 Lending Group
o 512.669.5599 m 512.633.4157 |
1 vote Thank Flag Link Tue Aug 14, 2012

The above link is to the place you complain about Mortgage Lenders.
0 votes Thank Flag Link Tue Aug 14, 2012

I believe all the responses you have received are correct. A lender will not collect any fees over and above what was originally disclosed on the Good Faith Estimate (GFE). There is a 0% deviation from your figures on the GFE. Only fees I may collect prior to closing is for the appraisal of the property. I agree with the Quicken comment. Love their commercials reflecting the huge spread between the note rate and APR. You should call for a quote and see if we can improve your situation.

Neal Davis

Neal Davis
NMLS No. 213826

Republic State Mortgage Company
2121 Sage Road, Suite 140
Houston, Texas 77056

713-579-7810 (Direct)
0 votes Thank Flag Link Tue Aug 14, 2012
You do not and are not required to make a deposit to lock a loan stay away from this be careful of this type Lender
0 votes Thank Flag Link Tue Aug 14, 2012
Why would a renter have any rights to the property? Are you secretly selling it to them? I do not understand why they would have one tiny problem signing a document saying they have no rights to the property. They have their lease which has nothing to do with rights of ownership.
0 votes Thank Flag Link Tue Aug 14, 2012
No there is no secret sell taking place. The lender's addendum requires an attorney to make sense of what one is signing. I would not sign something I did not understand or did not feel comfortable signing...I think that is what occurred. What I find odd is why would my loan depend on someone I have not control over signing a document the underwriters want. I provided the lender with the original lease, as well as, the most recent renewal.
Flag Tue Aug 14, 2012
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