Funding rescinded by lender after closing due to lender error

A lot of time and energy went into this process from 06/19/2020 - to date 10/15/2020, it's frustrating that it has come to this. Thanks in advance for your advice and help!---On 10/15/2020 5:39pm I received a call from A Y (Loan Officer) expressing that we have a major problem. According to A upon funding and deed Title realized that Texas has a law does not permit a refinance until after 12 months of cash-out refinance. He mentioned that Texas is the only state that has this law and they didn't realize this until this point. A stated that he was to meet with CEO to figure out how to handle this problem and an unrelated issue with another file which they have. I asked if loan had funded he stated that it had. He said he'd follow up with me after meeting with CEO, I sent A the email below to confirm whether my Amplify loan was paid off and for additional details of the problem so that I could research - I called L L (Loan Processor) 10/15/2020 at 6:24pm to get more details and she stated that they realized that Texas has a "weird law" that doesn't allow for refinance within 12 months of cash out refinance and that they funded but have to request the wire back to cancel funding. She stated A would be following up with me on 10/16/2020 after trying to figure out how they will be handling this issue. I asked about payment to Amplify and she said to go ahead and make the payment to them for October 2020, I advised that there will likely be a late fee on 10/16/2020 when they're open and I'm able to pay my October 1 payment. ----We purchased our home 06/25/2015 5% financed through T P - SN Company, I closed a Cash-out refinance with Amplify 11/20/2019 at 4% from 5%,because of current great low rates I applied for another refinance with referral by F I C U - CF - Loan Officer A who I submitted documents to and advised that I had refinanced with Amplify at the end of 2019/4th Quarter, credit approval 09/01/2020, according to A delay was due to demand and number of files they're working, 09/08/2020 locked in mortgage at 2.75% rate at buy down cost of .375% points ($1,714.), A advised it could take up to 60 days to close due to demand,Closed and signed documents with mobile notary at our home on 10/07/2020 approx 9pm, mandatory 3 day wait period to fund, Saturday 10/10/2020, 10/12/2020 funding delayed due to final credit pull and I was asked by L to manually unlock my Equifax credit report and explain to L 08/22/2020 inquiry of Telco where I was shopping mortgage options and rate signed and sent explanation letter, was told by L not to pay Amplify since funding would occur before Amplify late fee date of 10/16/2020, was told by Lerine loan would fund 10/13/2020 but then she had issues with Equifax system not pulling second half of report, was told not to pay Amplify since funding would occur before Amplify late fee date of 10/16/2020,was told by L congratulations and that funding was processed 10/14/2020, first payment to CMF - Community Mortgage Funding will be due on 12/01/2020, -----On 10/15/2020 5:39pm I received a call from A expressing that we have a major problem. According to A upon funding and deed Title realized that Texas law does not permit a refinance until after 12 months of cash-out refinance. A stated that he was to meet with CEO to figure out how to handle this problem and an issue with another file. I asked if loan had funded he stated that it had. He said he'd follow up with me after meeting with CEO, I sent A the email below to confirm if my Amplify loan was paid off and for details of the problem so that I could research - I called L 10/15/2020 at 6:24pm to get more details and she stated that they realized that Texas has a "weird law" that doesn't allow for refinance within 12 months of cash out refinance and that they funded but have to request the wire back to cancel funding. She stated Allen would be following up with me on 10/16/2020 after trying to figure out how they will be handling this issue. I asked about payment to Amplify and she said to go ahead and make the payment to them for October 2020, I advised that there will likely be a late fee on 10/16/2020 when they're open and I'm able to pay my October 1 payment. What are my options? by charlie246 from , California. Dec 6th 2020 Reply