Posted by LO-MO on 6/13/05 9:26pm
Msg #44444

No Prepay for borrowers over 62

Has anyone heard of this? I did an ameriquest signing today. The borrowers were age 65. There was a 3yr prepay penalty on loan that they weren't expecting, so when we call the LO, I was told it shouldn't be there, that there can not be any pre-pay penalty for any borrowers over 62.

Reply by Bobbi in CT on 6/14/05 6:49am
Msg #44494

Curiosity Question:

Did it STATE THAT as a FACT on the paper loan documents that the elderly couple signed? Or did the couple "just take the Verbal word of the nice loan officer"?

Not an attorney and not quite older than dirt. I do not know of any federal or state law that a lender cannot require a pre-payment penalty based on age (discriminationary practice).
If this is this is an Ameriquest "internal lending policy," I wonder where in the written loan documents that the couple received (commitment letter, etc.) and signed did it state there was no prepayment penalty?

NOT to worry you, it is not a non-attorney NSA's responsibility to give legal advice.My personal rule of thumb in real estate transactions is that signed paper rules over spoken promises until you get to Court ... then it's who has the best lawyer or is part of the class action lawsuit with the best evidence.

Reply by LO-MO on 6/14/05 12:01pm
Msg #44528

Ameriquest LO's verbal word.

This was the verbal word of the nice loan officer. The borrowers did not sign. I didn't see anything on the loan papers stating this and this was the first time I had ever heard of there being such a law as was represented by the loan officer. He told me and I repeated his message to the borrowers. I did ask him if they would get something in writing within the 1 week recission period that ameriquest offers and he assured me and them that there would be. As it turned out, that wasn't the only problem. Closing cost were much higher than was promised so the borrowers refused to sign. It is possible that it is an Ameriquest lending policy. I was under the impression by the way he stated it that it was a law. I was hoping that someone on this forum had ever heard of such a thing.