Hello,

I'm new to this forum, but I need some advice. I recently purchased a home and in doing research I decided to explore two different lenders. For the sake of privacy we will call them Lender A and Lender B. For Lender A I filled out an application online and never once spoke to a live person. I received a packet of information with my rate and other materials that I would have to sign for and return. On the other hand Lender B was in my area and offered to meet with me personaly and discuss my options (plus their rate was lower) To the point...I ended up going with Lender B who I was able to meet with in person.

The problem that occured was even though I never sent the information back to Lender A, they continued to process my application and proceeded to do an appraisal on the property. I had no idea that this was occuring. I allowed my mortgage lender to do an appraisal on the property as well.

Lender A called me about 2 weeks later to talk to me about the appraisal from which I replied, I wasn't aware that they processed my application. I withdrew my application, not realizing that the appraisal was already completed.

A week ago, I received a bill from them that was forwarded from the appraisal company. I do not think I should have to pay for it. I filled out their application online, but never signed anything. They do not have a single wet signature of mine.  Do I have any sort of case here, or should I just put up the money and move on?

Did you allow the appraiser from lender A access to your home?    Did you ask Lender A or the appraiser what the situation was in regards to the fee?  If so then pay it.  If not then don't.  I can't imagine lenders sending appraisers out without at least having an in depth discussion with the borrower.

Just sending Lender A some information does not allow them to charge you for an appraisal, and it's unusual that they would have continued with the loan if they didn't have any further contact with you.  You would have needed to sign off on something for them to have the ability to charge you, I believe.  I would bet that whoever you were dealing with was not very experienced and ordered the appraisal before having confirmation from you that you'd be using them and was trying to keep the process moving. 

Don't contact the appraiser, just go back to Lender A and try to get in touch with a supervisor to give them your explanation.  If you don't like what you hear, touch base with this site again for more help.

Without seeing the online site and any disclosures that were included/ "clicked" I can't speak to the legality of it . . . but if I had never ordered an appraisal, agreed to a refinance, or spoken to a person then you better lelieve that I would not be paying for an appraisal.

I would call the appraiser to let them know that you never agreed to this order and never signed a SINGLE FORM, and while it is annoying for the appraiser, to please kindly forward the bill to the lender. The LENDER orders the appraisal - it is the LENDER's job to pay the appraiser. The lender can take your money to do that, with your permission - but you should never pay the appraiser directly.

0.0 communication from Lender A. I had to pay the fee because I withdrew my application.

this is my latest reponse through email, I have cut out names for privacy,

"We do not do pre approvals here and every loan is active.  You were notified of the charges your were responsible before submitting the application so unfortunately you are liable for these fees.  I have consulted this with my manager and unfortunately you will not be able to get refunded for this fee.
 
I’m sorry for the inconvenience this has caused for you"

-Lender A

I wouldn't just take their word for it that the manager had been consulted, call and ask to talk with the manager yourself.  As Kelcey had mentioned above, nobody can speak to the legality of what you agreed to on the website, but this all seems strange to me.  If you never sent the application back with signed copies, then I don't know why they would even process the loan, as problems such as this would start to happen.  Can you post the link to where you found this application?

While I certainly can't give you legal advice, the intent of the Mortgage Disclosure Improvement Act (MDIA) was to help eliminate deceptive practices by lenders.  The act requires the lender to disclose to you that you do not have to proceed with the transaction even if you completed and signed an application.  The lender in question may be within the letter of the law in that they did not collect a fee prior to the required waiting period, but it certainly does not seem like a consumer friendly process.  You can find some info on MDIA here: http://www.allregs.com/ealerts/updates090831_ComplyingWithMortgageDisclosureImprovementAct.htm

If the manager is not willing to eliminate the charges, I would suggest contacting the agency that regulates the lender to file a complaint.  If you need help determining the regulatory agency, please let us know who the lender is.

At this point I care no more about protecting the privacy of the Lender, TDBANK NORTH This is the only thing I filled out BUT NEVER SIGNED,   

Rate Lock/Advance Fees Agreement

in the agreement it states, in advance fees that if I withdraw, credit fee and appraisal will be charged. However I still did not sign anything

Spoke with the manager again, and they are not willing to eliminate the charges. Can someone let me know the regulatory agency, so I can file an official complaint?

Thank you so much for the help, this forum is an excellent resource

Michael Cory:

Can someone let me know the regulatory agency, so I can file an official complaint?

Contact the Office of the Comptroller of Currency (OCC) here: http://helpwithmybank.gov/ or call (800) 613-6743

While I am not a lawyer and cannot give legal advice; it appears as though the rate lock agreement requires your signature.  You may want to speak with the manager and let him know that if they you can't get resolution though the bank, that you will contact the OCC. 

I just want to thank everyone on this forum for their help and advice. I contacted the OCC and within a week I received my funds back. I still have not heard from the Bank, but at least I got my money back, and I can move on.

Thanks again

MC