Loan Officer trying to increase mortgage rate after closing

[dandarc]

"We have amended loan documents" - because the closing document sent had a lower rate than the lock document. They provided and asked me to sign this thing 3 days before closing with the lower rate.

Am I in the wrong telling them "it sucks to be you - not signing that".

[seemsright]

"We have amended loan documents" - because the closing document sent had a lower rate than the lock document. They provided and asked me to sign this thing 3 days before closing with the lower rate.

Am I in the wrong telling them "it sucks to be you - not signing that".

I would do exactly that. Do not sign the papers. If they want the loan they can redo the paperwork correctly. It may delay closing.

[dandarc]

"We have amended loan documents" - because the closing document sent had a lower rate than the lock document. They provided and asked me to sign this thing 3 days before closing with the lower rate.

Am I in the wrong telling them "it sucks to be you - not signing that".

I would do exactly that. Do not sign the papers. If they want the loan they can redo the paperwork correctly. It may delay closing.

Closing happened a month ago. First payment due 12/1.

[Here4theGB]

Send a counter offer with an even lower rate than what you closed on and see if they will agree?

[MilesTeg]

"We have amended loan documents" - because the closing document sent had a lower rate than the lock document. They provided and asked me to sign this thing 3 days before closing with the lower rate.

Am I in the wrong telling them "it sucks to be you - not signing that".

You'd have to consult a lawyer, but there's a least two possibilities:

1.) 'sucks to be you' will work
2.) there is some finer point of contract law added to cover such errors.

What rate is actually used for the payment calculation?

[dandarc]

"We have amended loan documents" - because the closing document sent had a lower rate than the lock document. They provided and asked me to sign this thing 3 days before closing with the lower rate.

Am I in the wrong telling them "it sucks to be you - not signing that".

You'd have to consult a lawyer, but there's a least two possibilities:

1.) 'sucks to be you' will work
2.) there is some finer point of contract law added to cover such errors.

I think the agreement to fix errors that I signed will ultimately require me to sign this, but I'm going to throw a fit first. Wife pointed out that the difference could be a simple typo - leave out the "8" in 3.875% and you get 3.75%. Albeit, with the amount of paperwork involved in a mortgage, you'd think double checking your work would be standard practice.

Anyway, I went with this bank because they are where I do my banking. However, there appears to be no benefit at all to continuing to work with this bank for any reason. Can't even make my mortgage payments through their online banking. Was much better before the local bank that I signed up with was acquired by a regional bank a couple of years ago.

I think I may find a better place to bank with my wife, then send a letter to the CEO explaining exactly why I'm taking my business elsewhere after 10 years. $9 / month difference in the payment. Am I willing to be dick over $9 / month? Maybe. Is the bank willing to lose a customer over $9/month? Probably - they need deposit accounts sure, but one $15,000-ish average account can't be that big of a deal to them.

[August26th]

What is the interest rate on the actual Note from the closing? That is the most important document, as it is the promise to repay, and is what your loan is based off of. If that one is correct, and the Closing Disclosure accidentally showed a lower rate, then agree to fix it and move on.

It’s not a great look for the bank at all, but you have to remember that humans are the ones drawing up these documents, and errors happen. I wouldn’t blame you at all for moving your banking relationship elsewhere, but I don’t think you have much recourse here.

[dandarc]

What is the interest rate on the actual Note from the closing? That is the most important document, as it is the promise to repay, and is what your loan is based off of. If that one is correct, and the Closing Disclosure accidentally showed a lower rate, then agree to fix it and move on.

It’s not a great look for the bank at all, but you have to remember that humans are the ones drawing up these documents, and errors happen. I wouldn’t blame you at all for moving your banking relationship elsewhere, but I don’t think you have much recourse here.

Seems like they have dropped the issue.

Everything in the closing packet had the lower rate - the note, the Closing disclosure, the amortization schedule. Every piece of paper that had an interest on it said the lower rate.

Pretty sure the law makes a distinction between clerical errors and numerical errors. Mistyped a name on a document - no problem fixing that. But changing interest rate a month after the fact is not the same thing.

Other fun thing - can't make a payment on this loan from the bank's online banking. Even the bill pay didn't work - was returned instead of being applied to the loan. Have to mail a paper check or go to the bank in person. Counting the days until the loan is sold and I'm dealing with a situation where I can set up auto pay like we're living some time in the last couple decades or something.

CEO of my bank should feel like this guy:

[August26th]

Then you totally won! No fits or rants needed.

But yeah... move on from them. Congrats!

[MoneyQuirk]

I don't think that's legal for them to do that.

I wouldn't sign it.

I'd consult an attorney.