Can you please advise me on my rights and next steps to take with a lender that did not disclose all of the fees associated on my loan?

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Can you please advise me on my rights and next steps to take with a lender that did not disclose all of the fees associated on my loan?

Throughout pre-approval and finding a home and completing my loan application, I was given estimates of my loan and fees which were consistent. I have received the initial underwriting approval and now it’s time for me to lock in my rate. Today I’ve received an estimate and the closing cost is significantly higher by 8k. According to the lender, this is a commitment/ high balance fee which was never disclosed to me throughout the process. Please advise on what my rights are and what steps I should take? In my personal opinion, this fee should have been disclosed to me up front so I could make an informed decision when shopping lenders.

Asked on July 12, 2018 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A failure to disclose a fee is both common law fraud and a violation of the Truth-in-Lending Act (TILA). This would enable you to rescind (undo; get out of) the loan if you wanted; or you may have grounds to sue for compensation, such as for the additional lending cost. For free help, try contacting the Federal Trade Commission (FTC), which enforces TILA and the Act's related regulations; and/or contact a lawyer about taking legal action (i.e. suing).


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