Posted on: 11th Feb, 2010 08:26 pm
My husband, my son, and myself have been approved by Stearns Bank for the purchase of a home as my son's primary residence. My son cannont qualify because his income is low, but as a full time student, the bank qualified him as the primary resident, with my husband and I as co-signing the loan, and since it doesn't meet Freddie Mac / Fannie Mae guidelines, it will be a portfolio loan (?). We are now 10 days away from closing, and the lender notified our mortgage broker that they are no longer willing to do the loan with these already approved conditions (in writing), that my son cannot be on the loan, the loan must be with just my husband and myself, as investment property, which increased the interest rate, and the bank demands that we increase our down payment from 25% to 30 %. Is this fraudulent behavior? It seems to us, that the bank believes they can do anything they please, because we won't have time to secure a new loan, and close in 10 days. Do we have any recoarse? Are there any laws that protect consumers from this kind of behavior? Please advise. Thank you, Denise
denise, if you have on hand a commitment letter from the lender, you ought to be able to secure that loan. you can discuss this with your banking department in the state where you live, with the supervisory agency that governs this lender (it'll be on your disclosure paperwork), with the state's attorney general, with a local lawyer who can represent you.
if you had only a verbal say-so on the loan, you may be up against the wall with it. the portfolio loan makes sense, as what that means is that the lender would not be attempting to sell this loan ins the secondary market, as most loans get sold.
fight it, by all means, but make sure you have that commitment on hand.
if you had only a verbal say-so on the loan, you may be up against the wall with it. the portfolio loan makes sense, as what that means is that the lender would not be attempting to sell this loan ins the secondary market, as most loans get sold.
fight it, by all means, but make sure you have that commitment on hand.