Good Faith Estimate--does broker need to give me deal promised?

The broker would have known this the second he locked your loan.. so even though he told you your loan was locked, it probably wasn't.. and YES... he is bound by this disclosure.. but only the charges in Block 1.. if the rebate changes because of the rate change, then he is not bound by that.. Somewhere in your paperwork it would have been disclosed to you that either you are paying the compensation to the broker or the lender is paying the compensation to the broker.. if YOU are paying the compensation, then he can lower anything in any of those boxes.. if the LENDER is paying the broker the compensation, then by law, he cannot lower his box 1 fee.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

At the end of the day, his compliance people will require him to honor the quoted GFE, or allow for a "Change in Circumstance". Once you lock the rate, it is possible for the pricing to change to accommodate the locked loan amount and rate chosen. The bottom line is that if the loan was not locked with the investor, and not lockable under the terms disclosed, then the loan is not locked. If the two of you can't come to an agreeable solution, before the 16th, then it is possible for the broker to just turn you down. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

He should give you the deal as quoted on the good faith estimate. The problem is that you are dealing with a mortgage broker and he is quoting a direct lenders fees and he is not able to make them back it up. If it was a direct lender, you could force the issue much easier. When the broker presents the good faith estimate to the wholesale lender, they will likely refuse to take the loan. The real bonehead move was disclosing to you before he got the confirmation of fees on your lock.There is no problem with brokerage, and people are human. The problem is the lender compensation laws enacted in April 2011 that were created to protect you as the consumer in this case are harming you. Your broker has to make the same amount of money on every loan at that wholesale lender and so they can't make less like he would have done in the old days. Many brokers will have relationships at different compensation levels and so he may be able to move the loan to another lender where he is compensated less and then deliver something close to what you asked for. I am not sure how brokers can do this and conform to the letter of the law but I know it is done.I am at (866) 385-1650 and www dot AskTheLoanMan dot com

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When a GFE is presented to the prospective borrower there are SOME terms on it which have to be honored. I personally do not issue a GFE unless I've pulled credit, locked the rate and made perfectly sure that the information provided to me by the borrower is accurate thus preventing the deviation between what I've initially told you versus reality. And contrary to the ridiculous palaver Hans has improperly spouted off here, using a mortgage broker versus a big bank like B of A or whoever offers much in the way of advantages and truth be told, all of us in this industry are and should be held to the same standards. Sadly there are inexperienced people out there who jump the gun on a deal because they are excited and don't wanna risk losing the client and that results in mistakes.

Responding to "not issuing a good faith estimate until locked, etc" please note the FEDs say the good faith estimateswere redesigned so people could shop and look at various good faith estimates. Thus, they expect us to issueprospective borrowers good faith estimates to compare. A good faith estimate, in full, is only good for the day it is issued.The problem for many loan officers is time. We have to constantly compete for new business and spend more timethen ever with existing clients and all others who touch our originated loans along the way to funding. What alot of us aredoing to save time and possible problems... is issuing our version of a rate/price comparison or a worksheet sample of what the numbers on a good faith estimate might look at. most of us do these with a reasonable expectation we will be able to do it or very, very close to itwhen we get a borrower's personal documentation. All a borrower can do...if they really like the rate and pricing...is have the loan locked asap and ask to receive the official lock formfrom the bank. Everyone can provide that to a borrower. Otherwise, they have chosen to float the rate until such time as it or anotherrate is locked. We have had people who went with one of the heavily advertised "call centers" only to discover they were never locked.They discovered it because of delaying tactics since the rate never came down to match the quote!