Posted by heather_FL on 8/18/09 2:39pm
Msg #300641

Heads up LO's have a new tactic to get BO's to pay up!

This is the second closing in two months in which the loan officer and title company has been working together to dupe the borrower into believing something totally false. These were two completely different loan officers and title companies but same basic scenerio. Here is what happened last night:

The borrowers are told from the beginning of the refi process they will not have to bring any $ to closing. When the closing statement is done though it shows them having to bring $ but the loan officer explains it is really for next months mortgage payment and AMAZINGLY enough the amount at the bottom of the HUD shows them bringing the exact amount of their first payment with the new loan. So the borrowers are told before I arrive that they need to have a post dated check for the following month to send back with the closing package. Of course when I show them the HUD figures and they see the NOTE states their payment doesn't really start until October not September as their LO told them they don't understand. They are frustrated when what they see in black and white isn't what they were told and I have to tell them to call the LO if they have questions. Of course the LO once on the phone talks fast and furious about the MIP to FHA and how the closing costs aren't as much as it looks and even tries to state that when they refinanced two years ago they got to skip a payment then and that is why they are paying the payment in September now. WHAT??? By that time the borrowers heads are spinning and they say yeah they understand but really don't so we proceed with the signing. Of course as just a notary I have to bite my tongue but I know it's all false and I feel caught in the middle. It just makes me furious that these loan officers continue to tell bold face lies at the closing table especially in these times. The title company backs it up by accepting post dated checks for funding, I guess so they can keep what business they have.

In summary these loan officers are using this tactic when the closing costs come out to more than they originally thought and in order to get the borrowers to pay up they lie and state the money is to cover their first mortgage payment. Please let me know if anyone else is having experiences like this lately.

Reply by MW/VA on 8/18/09 2:44pm
Msg #300644

I've seen a couple of those--leave me scratching my head. The ones that I really don't see how they're getting away with it are FHA Streamline Refi's, where I think the rule says there can't be any out of pocket expense. Had one the other week where borrowers had to come up with over $5K (about the amount of the lenders fees). I think they were also told it was for skipped payments, interim interest, some such story.

Reply by Ilene C. Seidel on 8/18/09 2:45pm
Msg #300645

They will always find a way to get more $$

Reply by CF on 8/18/09 3:28pm
Msg #300652

It is real easy to read and do basic math. Many people on this board will be "outraged" with your post. You are just a Notary and there is no way for you to know any of this! Of course, I know how to read and do basic math too. I have heard this "song and pony show" many times at the table. The same antics are still going on!!!

Reply by Philip Johnson on 8/18/09 5:07pm
Msg #300671

Did you call the FBI? That's what CF (nom de plume)

would have you do. I like you would have the borrowers call THEIR lo and get an explanation on why the difference. Cf and others would have you run to the police, interpol, CIA and KGB to report this abomination.

Reply by dickb/wi on 8/18/09 6:27pm
Msg #300684

why not...if there is the appearance of fraud let the dept's

that be make the determination and take action where needed......i am tired of lenders and ecspcially lo's putting me on the firing line to try and cover their dirty work.....

Reply by Philip Johnson on 8/18/09 7:00pm
Msg #300695

So Dick a common error, could be fraud?

How many of these have you reported to the authorities and how many did the police issue reports on?

I'm not privy enough to know what a borrower has told his Lo and what the LO has told his borrower to make judgments on whom is telling a whopper. I'll continue to just have the borrower call the LO if there is a problem and the two of them can work it out.

Reply by CF on 8/18/09 6:52pm
Msg #300694

Philip- I have NEVER suggested that anyone

call the police or the FBI. Please get your information straight. My post, several days ago, stated that I and the borrowers can read. Whatever!!!!