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What recourse do I have?

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Looking at a small loan, 100% on 80K, 6.6% for 30, full doc.

Long distance deal, signed/mailed all the loan papers already.

Got appraisal taken care of, title's being done, everything's good to go...


Then, as it goes into underwriting, I find out the lender is saying it's an 8% rate, not the 6.6%.

The NLC mortgage broker and the MiPPi loan processor both point the finger at the lender, First Magnus.


The GFE, the loan app, everything I signed had 6.625% on it.

Nowhere do I see where it says it was a "locked" rate, is it implied because it's on ALL the paperwork?



Who does it sound like dropped the ball? Shouldn't the broker have "locked" the rate for 30 days?

Is it common for lenders of this size to use the "bait and switch"?

What recourse do I have in this situation?

The broker has taken a list of our expenses so far and presented it to his boss, but said there's no guarantee we'll recieve compensation.

The loan processor has shopped the loan around and says 7.5% is the best she can find, sorry.


It's a marginal deal that would have really worked best with the first loan scenario, the others are going to make it even harder to show positive cashflow. I'd like to get out of the deal at this point, recieve compensation for money spent, and move on to something better.


Any advice?

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It's impossible to say whether this was an honest error, or a sleaze ball tactic to stick it to you. In any event, this falls under the category of the squeaky wheel gets the grease. Make noise, and then make some more. Each time you speak to someone who isn't giving you what you feel is just compensation, ask to speak to someone else up the chain of command. No guarantee this will get your money back, but it will create stress and aggravation on their end, which may be all you can hope for.

Lessons learned: assume nothing and always read the fine print and details, especially anything that has to do with money. And keep your eyes open for a hard working, reliable, and honest money man. They are an invaluable part of your success.

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