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?

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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 11 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

http://www.dfi.wa.gov/

 


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