my mortgage broker botched my loan after getting through the usda aprroval process the day before closing, why would this happen?

Asked by discouraged, Asheville, NC Sat Apr 23, 2011

I got an online broker, probably my 1st mistake, got the loan approval, got approval through the usda loan process, it was the day before closing, I was getting ready to turn on the utilities in my name, buyer ready, seller ready, attorney ready, insurance in place, my realtor tells me that the broker messed up the good faith estimate and the lender has pulled my loan, what is going on here?

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Tanya Plaut, , Asheville, NC
Sat Apr 23, 2011
I agree with Dan's summary of the problem and assuming there is nothing more you should be able to get to closing after you have received the updated information on the closing costs. I can't answer for mortgage brokers you find on-line - it is always better to do business face-to-face with a mortgage lender in your community even if it looks like it might cost you a few dollars more.
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Dan Tabit, Agent, Issaquah, WA
Sat Apr 23, 2011
Based on your description I see two issues; Your lender failed to meet the federal rules of disclosure (Reg. Z) and likely just needs to re-disclose everything to you and allow you the government mandated waiting period before you can sign, and the Government set up such an onerous and inflexible system to "protect" the consumer that the consumer is getting burned.
Anytime certain numbers on your good faith estimate change beyond an acceptable amount, loan officers must re-disclose to you and wait 3 days. If you search for Reg Z, re-disclosure, you'll find many articles and discussions on the subject. The good news is, if everyone is willing and this is the problem, you should be able to get back on track. If not, you'll need a full explanation from your lender.
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