Bait & Switch by a mortgage broker?

Question

I got a GFE from a mortgage broker, he had run my credit and said I can get this loan he illustrated in the GFE. Now after I have paid for an appraisal he is telling me that the lender ran my credit and my score has gone down. I subsribe to my fico and per my fico there is not another inquiry besides the one he ran. He now wants to give me a way higher interest rate, I told him I want proof that the other lender rejected me and he says he can't provide such, and i want a copy of my credit report showing that my score had gone down. They do not want to provide me this info. either. I feel that I have a right to this information. I have now filed a complaint with the BBB and am planning on contacting the DRE. I am disgusted with this situation and mad as hell!!!!

Answer 1

The Better Business Bureau is not going to help you...but the BANKING COMMISSION in your state will.

You are SHARP! The broker had no business ordering an appraisal before he pulled your credit. That is putting the cart before the horse.

You bet your dollar that something is fishy...and a bait and switch is exactly what he is doing in order to pad his own pocket.

My recommendation is to tell him to REFUND your money for the appraisal immediately, so you can go to another lender. Go to a MAJOR mortgage company, such as Countrywide, Wells Fargo, HomeBanc, pick any of them just make sure they are a direct lender. Ask to speak to the branch manager, and explain to them what happened and that you need someone EXPERIENCED to move this transaction quickly, not some newbie that just got his Loan Officer's license last week.

If he refuses, tell him if he doesn't, you will go to the banking commission and file a complaint that he is in violation of Fair Lending (b/c he is...he won't give you evidence of WHY he is charging you a higher rate), and watch his face turn white.

Good for you! Your story shows that you don't have to know the ins and outs of the mortgage business to know when something isn't right!

Answer 2

Very common practice and very shady, remember that mortgage brokers make more commission if they sell loans at higher interest rates or with points. The lender tells them at what rate they will finance the loan then a shady broker will add to it. Go to a bank or a reputable broker.

Answer 3

Since you suffered no damages you have no claim. Your case will be thrown out. You may be able to get criminal charges placed against him though. EDIT: What was the total dollar amount you actually lost as a result of the bait and switch? If you did not suffer actual financial loss you won't have much of a case at all.

Answer 4

go get him! I had a friend that went through the same stuff when she refinanced her house. They kept trying to up the interest rate and they took months and months. She finally got tired of it all and reported them to all possible places. Some people think they can get away with anything. It is a moral oblication of anyone screwed to turn them in to every organization that can cause them a hassle. It's the only way to get rid of them. Never forget the state attorney general.

Answer 5

Yeah, it does sound like they thought they would take you in but you outwitted them and they got caught. If the appraisal fee was less than $5000 then take them to small claims court. I think you'll win.
Go going on reporting them to the BBB, I wish more people would do that.
Good luck.

Answer 6

Get valuable tips on mortgage from http://moneymentor.cashmatter.info . It's a very useful website.

Answer 7

You have by Federal Law the right to view all credits reponses.
Go to your states Real Estate Commission and report this SOB.