Home Savings Of America Met Life Home Loans Breach of contact on 3.5%,15 Year,fixed rate mortgage approval Cranston, Rhode Island

...if they indeed said that "your rate is locked" - can someone prove that in writing? If not you *might* still have an argument but it's your word against theirs. Someone with more knowledge than me may chime in and advise your best course of action, but I could suggest going up the corporate ladder at that company first, let them know what employee made that statement and see if that gets you anywhere.

You need to look up the what "Bait and Switch" is. Because nothing in your report or your update describes a "Bait and Switch".

First of all Home Savings did bait me in by using a previous appraisal and agreeing to pay for appraisal fees if need be.

- Nothing in your original report or update mentions them not paying for the appraisal. If you have this agreement in writing and they didn't, you have a valid complaint. If they don't reimburse you, you could take them to Small Claims to get the money you had to pay for the appraisal. But thinking this is "bait" for the Interest Rate, well you might as well say they "baited" you by having an open sign on their door.

In short "Bait and Switch" has to do with something being advertised, and when you try and get the item the salesperson(in this case the loan officer) tells you how bad that item is and trys to get you to a higher price item. The problem with your claim is that NO ONE knows exactly what Interest Rates are going to do. The loan officer did not go into this knowing that by the time the process was complete the rate would be 4%.

But unless you have something in writing that says your rate is locked, trying to make any claims on that is going to be hard(if not impossible). If you think the loan officer did not disclose everything they should have, you may have a case. But you would have to take every paper you signed and have another attorney who specializes in this area(Real Estate and/or Finanancing) to go over all of the documents. But that is going to cost you a couplehundred dollars(at least), and there is no guarantee that the Loan Officer did anything wrong. Even ifthey did you may not be entitled to any compensation.

Now, I do agree with the other poster, 4% is not as good as 3.5%. But when Interest rates do rise, and the odds are very good that they will, you still havea very good rate.

In response to your common sense comment. You seem well informed.

First of all Home Savings did bait me in by using a previous appraisal and agreeing to pay for appraisal fees if need be. Once I agreed to the 3.5% loan I was told it was locked in. Since this loan was taking so long I asked and was reassured several times all along the way that this rate was locked and I was even told it has been extended.

Now if there is a specific form to lock in a rate, this should have been disclosed. As far as floating a rate, this should have been disclosed.

The only response I could get from Home Savings is that the loan process is taking a lot longer than usual because of the low rates they have been so busy. I was also told not to worry that my rate was locked and guaranteed.

So how would common sense respond to this and what could you suggest.

Thanks

In response to this post, nothing done here is actually considered to be unethical, immoral, nor considered predatory lending. After doing some research I have learned that due to the new laws and regulations immplemented by the Governemnt and State specifics, there is one particular lae that I would like to introduce you to. Regulation "X" or commonly known as RESPA (Real Estate Settlement Procedures Act)

Please take a look at this rule, as you will learn that by law, once one's credit is pulled there is a 3 working day period where the TIL (Truth in Lending) and GFE (Good Faith Estimate) must be disclosed, along with other disclosures. From your statement, I see that this was the case. At the time the credit was pulled, the rate of 3.5% was most definatley available, and I see in October, this proves true. After Thanksgiving, and through Christmas the rates took a turn for the worst, and this is NOT the banks fault. As you are aware to close a loan is a timely process, pending each borrower's different circumstance.

As I stated in the beginning if you did receive the TIL and GFE on the appropriate day, then the Bank mentioned is in Compliance, and therefor did not have to honor that rate of 3.5% because at that time when your credit was pulled that rate was available. From that day, you have 10 days to either proceed with the loan, or cancel. After 10 working days, that loan then becomes void if no response. If you did respond in the correct time, then at that point you had to either be given a Rate Lock Commitment with the specific rate Locked(which was not sent in the initial disclosures) or float that rate. If you can show that the rate was locked with a document signed and dated showing the rate of 3.5% LOCKED, then you may have something (which you didnt mention)

"They are offering me a 4% rate but that is not the agreement in the contract,3.5% is very specific in all of the documents."

As quoted above from yourself. This is not a contract. This is not the old "bait and switch" and this is not a final agreement. I'ts simply an estimate, for you never locked in, and with a bad turn in interest rates, at the time of your approval, or close, and when the time came to lock in,it was not available. This is not illegal, this is simply how the industry works, rates go up, andthey go down every day! This happens every day, and most of the time is out of the Broker's, Lender's, Originator's hands.

4.0% is a great rate! Take the loan and keep your eyes on this 3.5% rate.I am willing to make a gentleman's bet that over this year, 2011 and for time to come, you wont see it again.When you start to see rates in the 5% and higher, lets see thenif this complaint was even worth mentioning.

-Common Sense

Did they at any time show you a rate lock, or at least disclose to you that the "rate is locked for XXX days?"

Interest rates are higher than in October, that's why I ask. If they had any sense they'd have either done a long rate lock or made it clear that the 3.5% was short-term. If they did NOT do that, you probably have a case and a right to get the 3.5% rate.

OTOH, If you signed a rate lock for shorter than the time it took, you will have to suck it up, but they may still have SOME liability for not offering an extension.