I think our mortgage broker is ripping us off

[Scribbled_Notz]

I'd love to hear from anyone who has expertise on this.

So the wife and I decided to refinance the mortgage a couple of months ago, and we went through a broker. We have fantastic credit and we earn a nice healthy household income and have never missed a mortgage payment. We also owe just a little over half of what the house is worth.

Anyway, it took two months to get the refinance finalized, and we're supposed to sign the papers tomorrow. Our broker went with a 30-day lock, but it had to be extended an extra 30 days because the lender was inundated with new loans. So the broker mentions today that because of the extension, the lender is charging an exta quarter point. The broker says he will pay half of the quarter point, while I have to pay the other half. Now, this absolutely pisses me off, because to me, it's the fault of the LENDER that the extension was needed. Why the heck should I pay more because they took so long to get it done? This makes no sense to me - like I am being penalized for doing absolutely nothing.

Now that I've been thinking about it, I am getting a sneaking suspicion that this mortgage broker is full of shirt. I think he screwed up somewhere along the line, or he's basically finding a way to bilk me out of another $250. It's not a ton of money, but it really pisses me off on principal.

Finally, my question: has anyone ever heard of this happening?

 

[Trouser_Buddah]

Is it possible there really is no extra quarter point and that he's just trying to bump up his margin? That's my first instinct.

I worked as a loan officer for a mortgage bank for a little while, and we heard about brokers doing this kind of stuff.

 

[Scribbled_Notz]

Is it possible there really is no extra quarter point and that he's just trying to bump up his margin? That's my first instinct.

I worked as a loan officer for a mortgage bank for a little while, and we heard about brokers doing this kind of stuff.

Yes. This is absolutely possible. I'm going to call the lender tomorrow morning before I sign the papers and see if he's telling me the truth.

 

[EStreetJoe]

Scribbled -- can you ask the mortgage broker who the lender is and then call that lender today and see if that's the case?

 

[TheSportsPredictor]

Your response should be:

"Wow, that's too bad. You see, we have budgeted for the amount agreed to several months ago. Now that it's gone beyond that, I'm afraid the deal's off."

 

[I Digress]

I would find a new broker.

 

[Boom_70]

You need to talk to your closing attorney but there has to be full disclosure as to how much the broker is getting. The closing documents would clearly show that.

It sucks but you really do not have a lot of leverage. What is your alternative at this point? If your mortage rate dropping the $250 that you have pay will be nothing in the long run.

 

[Pancamo]

You need to talk to your closing attorney but there has to be full disclosure as to how much the broker is getting. The closing documents would clearly show that.

It sucks but you really do not have a lot of leverage. What is your alternative at this point? If your mortage rate dropping the $250 that you have pay will be nothing in the long run.

If the broker works for a lender, there doesn't have to be full disclosure of the earnings.

 

[Boom_70]

You need to talk to your closing attorney but there has to be full disclosure as to how much the broker is getting. The closing documents would clearly show that.

It sucks but you really do not have a lot of leverage. What is your alternative at this point? If your mortage rate dropping the $250 that you have pay will be nothing in the long run.

If the broker works for a lender, there doesn't have to be full disclosure of the earnings.

From scribbled's description it seems like broker was independent of lender.

 

[Pancamo]

You need to talk to your closing attorney but there has to be full disclosure as to how much the broker is getting. The closing documents would clearly show that.

It sucks but you really do not have a lot of leverage. What is your alternative at this point? If your mortage rate dropping the $250 that you have pay will be nothing in the long run.

If the broker works for a lender, there doesn't have to be full disclosure of the earnings.

From scribbled's description it seems like broker was independent of lender.

There are many brokers who are independent of large name lenders but wholesale their own money which allows the broker to keep the premium off the settlement statement. A pure broker who works with many lenders will have the earnings on the statement. A broker that wholesales money does not.

 

[markvid]

Scribbled, you are being cheated.
Report this person to the Better Business Bureau and tell him you are doing so.

 

[JR]

The Better Business Bureau is useless. Get a lawyer.