Disclosure of Mortgagegreenspun.com : LUSENET : Fair Lending : One Thread
1.) I a lender Closes on a FHA loan and then later finds out that the loan is disapproved by HUD, should the borrower be notified and is there a minimum amount of time the lender has to notify the borrower?
2.) If the lender fails to notify the borrower has the lender violated and of the borrowers rights?
3.) If after the borrower finds out that the lender failed to notify him and the borrower tries to refinance with the lender and is not given an opportunity to obtain proper financing due to the borrowers negligence, is the borrower being discriminated against, I think so and if you answer yes to any of my questions, I intend to file suit.
-- Carlos Maldonado (Khato1@AOL.COM), January 25, 2000
Did they fund the first loan? If yes, then the lenders obligation is filled and that is the end.
If they failed to fund the loan, was the borrower contractually informed that the loan was subject to FHA/HUD acceptance? If they were informed, then lender would have had be shown at gross fault as the reason that HUD rejected that loan.
I'm in the mortgage industry. I would not file suit. Waste of lifetime ( unless your the attorney ). Save the lawsuit for a real problem.
Now if the lender closed the loan, then cancelled funding and did not have an agreement with the borrower that the loan was subject to hud acceptance then they should fund an equivilent loan at the pricing promised or compensate for none performance. The compensation should at the minimum the cost of a replacement loan plus all out of pocket costs of the first loan.
At the most its a $5000 dollar problem other than hurt feelings.
The expressed opinions are my own and I often do not have a clue as to what I'm talking about. Don't blame my employer. Take two aspirin. None of the above should be construed as legal advice or medical advice or mental health counseling or a recommendation to buy from kmart or wally world or any securities. I am not responsible for my own actions and please don't sue me.
Last (I promise) Do your homework BEFORE your next loan or home purchase. It will save you money time and effort.
-- Paul (email@example.com), March 16, 2000.