I was recently given a good faith agreement for a refinance at 4.5% and was told that I would be approved when I signed on the dotted line.  Then a week later I recieved a phone call saying that she was terribly sorry but their company had oversold the 4.5 rate but the company did lock me in at a 4.75 rate.  She said that she felt really bad and that to process the loan she would basically be giving up all her commision just to push the 4.75 rate through.  My question is isn't their some type of protection that I should recieve by signing a good faith at 4.5 percent if I met all of their qualifications?  Wouldn't that make it a "Bad faith agreement?  If I held up to my end of the deal shouldn't they?  Please help

75

Were the rates locked? Rates on GFE are valid only if the rates are locked.  Were you aware of this fact?

She said that it was, but during the underwriting process it was bumped to a 4.75 because the company oversold the product.  But all I have is her word on if it was or wasn't.  Any ideas?  I currently have a 5.5 percent mtg and am now unsure if this process is even worth it.  It is for a 2plex rental property of mine with a balance of 118500. .

She can tell that story to Grade 5 student.

Sorry I am a little unclear.  I have the good faith that I signed a proof that it was recieved by her company in a timely matter, but what legalities might I have under the circumstances?  Any?  Should I talk to the manager?

Yes indeed. 

You won't have any legal recourse if all you had was a GFE, but calling to talk to the manager may help. 

She is handing you a bunch of Malarky, I have never heard of such a thing.  I would go elsewhere.

Travis,

If you didn't get a rate lock agreement, odds are the rate was never locked.  The loan officer in question is most likely pulling a bait and switch.  The originator claims that their company "oversold" a rate?  If the rate was available, it isn't limited to a certain number of people.

This is one of the reasons to never select an originator based solely on the rate and fees that they promise you.  Also, if the rates truly did go from 4.5% to 4.75%, a good originator would have called you prior to locking the rate to ensure that you were fully aware of the change.  If I were you, I would run away from this originator if they, or their manager, cannot provide the 4.5% rate you were promised.  It is much better to deal with an honest person and company than to keep feeding a dishonest individual.