I was verbally extended refi terms and sent a Good Faith corresponding and accepted it. A month later the broker changed the terms. Is this legal?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I was verbally extended refi terms and sent a Good Faith corresponding and accepted it. A month later the broker changed the terms. Is this legal?
Offered a rate for a $540k loan, met all terms of the agreement but still a month later the broker came back and said that now he could only do a $506k loan. He had told me that he had locked in the loan previously. Is this legal?
Asked on May 22, 2009 under Real Estate Law, Washington
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
A broker can change the terms of the good faith estimate. However, and I stress, however, if the terms are material and change how much you pay, then you are entitled to a new good faith estimate, to determine whether or not you want to move forward with closing.
If he locked in the loan, loan rate locks are only for a certain amount of time. Did something happen whereby the rate lock expired? Was there delay by you or the broker or agent?
You can do the following: contact the Washington State Department of Financial Institutions
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.