Source Lending Corporation ripoff Bait and switch Plymouth Minnesota

Was it a Bait and Switch? The mortgage company must be used to avail of the new construction builder's incentives. They pre-qualified us on the first meeting. No indication of debt ratio. Just fully qualified.

Four days before closing, loan officer emailed a short version of good faith estimate requesting to lock if rate is acceptable. Printed, signed, faxed, and emailed back the same to her. A day before closing, received email saying that our debt ratio was too high that our rates have changed from 8.5% to 9.5%. Called the builder and express frustration and threatened to cancel the settlement. Builder told loan officer to call me.

Expressed frustration and had an argument of the bait and switch on rates. Loan officer said that the rates were not locked at all and threatened that if settlement not done as scheduled our security deposit of 20K will be forfeited. I know it's illegal for a bait and switch transaction but can not find any legal arguments to prove it.

Can anyone provide any laws or legal decisions, federal or state, that I can quote to prove that what they did is really illegal and the consequences of their action.

Rob
Minneapolis, Minnesota
U.S.A.