Mortgage Broker Question?

Question

I am trying to get my loan contract redefined (not refinanced). I am seeking to the change the conditions of the loan. I received the loan from a Mortgage Broker.

When I spoke to the bank that sends me the coupon for my monthly payments; I asked them who I needed to speak to about redefining the loan contract-they stated that they are merely "servicing" the loan and the people who are responsible for redefining the loan contract was the Mortgage Broker.

What they stated to me does not make sense. Is what I am being told correct?

Answer 1

The person (broker) or lender (bank or mortgage company) that got you the loan is called the loan "originator". Most of the time that lender literally "sells" the loan to another bank or mortgage company. For instance, I got a mortgage loan from my local bank for my first house. In a few months I got a letter saying that my loan had been acquired by another large company, Washington Mutual and I would now be paying them every month.
The other scenario, which sounds like yours, is that the originator of the loan keeps the loan but hires/contracts another company, in this case the bank you pay, to "service" the loan, in other words collect payment and do all the paperwork.

Unless you know something the rest of us don't ( I don't know what redefining your loan is) with interest rates what they are, you may be better off refinancing with a reputable local lender. UNLESS you don't plan to own this home for more than five years. It is only my opinion, and I don't need to hear from Mtg. brokers or their friends, but I always steered my clients clear of Mtg. Brokers. As you are finding out, they are only middle men.

Best luck and again, find a local lender and use them as a resource here.

Answer 2

What do you mean by "redefined'? I've never heard of a lender changing the terms of a loan other that to help forestall forclosure. Remember, your loan was underwritten based on, among other things, the loan program. If you change the terms, you have to change the loan.
The mortgage broker can get you another loan, but he no longer has anything to do with your current one. Once it's closed, it belongs to the lender.
The person you talked to is incorrect, and it sounds like you want to refinance.

Answer 3

Batman, to get your loan redefined is quite a lofty goal.

What are you hoping to redefine? That will better let me know who you should talk to. Basically the servicing company purchased your final loan package from the originating lender.

So they do in fact own your loan. But of course anyone that is answering the phone is most likely going to say just about anything to get you off of the phone. Call back and ask for a foreclosure work out specialist. This will get you transfered up the line pretty quickly. Then ask the work out specialist what you need to get "redefined". You are just saying foreclosure to get transfered to someone whose job it is to keep you making your payments. They are in a position to help you.

Best of luck,

Answer 4

Once the loan is closed- the Broker who did it originally can do nothing to alter it. The only people with any control at this time is the bank that owns the "paper" or most likely the servicer of the note.
If you did not like something in the way the origianl agreement was presented at closing- you should not have signed it.

Answer 5

No knowing all the facts the best I can do in giving you an opinion is to send you to these links so you can do the research.
Mortgage law an Overview: http://www.law.cornell.edu/wex/index.php/Mortgage
American Bankers Association: http://www.aba.com/Consumer+Connection/default.htm
Mortgage Brokers Association: http://www.namb.org/namb/Default.asp
HUD Borrower rights and responsibilities of Mortgage Servicer: http://www.hud.gov/offices/hsg/sfh/res/rightsmtgesrvcr.cfm
Buena Suerte