Posted by Reliable1 on 11/20/12 4:32pm
Msg #444157

Report a loan broker

After a nightmare appointment, I think I may need to report this loan broker for predatory lending practices. Have any of you ever felt the need to do that? Where would I start - FTC? State AG?
Background: non-owner occupied property, so no recission period. No HUD1 in pkg., only Estimated costs doc, so I called signing co. about it - they said there isn't one, so go to appt. and we'll pay for 2nd trip if it becomes necessary. When I arrived, single female borrower said she was sorry I went all that way, but she was not going to do the loan after all. Turned out the lender/broker was evasive about total cost of loan, never gave her advance figures or TIL info, even after her specific request for them. When I called signing co. to let them know, they had lender/broker call on her house phone. That person insulted her and she ended up hanging up on her. Then they called me back, while I was not yet out the door, and started insulting me.
While meanness is not illegal, failure to give borrower the appropriate financial figures seems predatory to me. The loan package I brought with me had a TIL, but no Final Settlement Statement /HUD1. What do you think?

Reply by Linda_H/FL on 11/20/12 5:35pm
Msg #444168

IMO you can only control what was done to you

Bill for your printing, travel and time -

As for how the borrower was treated or what the LO did or did not do with the borrower, that's for the borrower to complain about - not you. The best you can do is hold on to the document package as proof of what you were sent and what you were told to do (no HUD - just go) if you're ever called into it. IMO you don't know the whole story of what happened behind the scenes before you got involved. This is not your battle to fight.

JMO

Reply by CJ on 11/20/12 6:08pm
Msg #444177

What I do . . .

When things go really bad, I always document the whole thing and email it to the signing service. THen I have it for my records, and they have it for their records, and if they want to do something, they can. I am careful to keep it factual and keep in mind that it might be read in court someday, so I am careful about how I word it.

Reply by Reliable1 on 11/21/12 7:10am
Msg #444235

Re: What I do . . .

Very good advice - and I did do that the next morning. Thank you for taking time to write!

Reply by Reliable1 on 11/21/12 7:09am
Msg #444234

Re: IMO you can only control what was done to you

You are right, and I did have those thoughts too. It likely needs to be the one directly affected to file a complaint and I won't instigate it that way to the borrower. I'm still mulling it over and seeking wisdom. I appreciate your input.

Reply by Karla/OR on 11/20/12 7:15pm
Msg #444186

Agree with Linda and CJ. So sorry you were treated so badly when you were merely following the rules.

Reply by ToniK on 11/20/12 8:03pm
Msg #444199

I had a Loan officer call me and insulte. All I said was have a nice day and hung up on him. Immediately called hiring entity of course no answer and left a detailed message about what just happened. Next day company called me and apologized. I let it go.

Reply by Reliable1 on 11/21/12 7:22am
Msg #444239

Thanks ToniK, my issue wasn't the insults so much - I am not so thin-skinned, although it wasn't pleasant. My concern was the illegal predatory lending practices of non-disclosure and hiding information. But as I said, I am in a wait, gather information and ponder mode for now.

Reply by Barb25 on 11/20/12 8:41pm
Msg #444202

This is reminiscent of 2005/2006. We all remember the "lenders" who used these tactics. What were their names. Geit the point? Stupid people. Your ego is bruised. And yes, where would you start. Even the signing service got to experience with wrath of these neanderthals. Let it go. Move on. One way or another their day is coming.

Reply by Larry/IL on 11/21/12 5:28am
Msg #444230

No Settlement Statement?

I do not want to sound harsh but, IMO, you should have never left your office without a Settlement Statement. One of the differences between a NSA and a Notary Public should be knowing which basic documents are needed to complete a signing.

Reply by Reliable1 on 11/21/12 7:18am
Msg #444236

Re: No Settlement Statement?

Your note isn't harsh at all, no worries, it's important here to give straightforward suggestions born of experience and education. (smile) Hopefully we can help each other grow and learn together.
I did notify them before going, about the missing HUD1, and decided to go ahead and follow their direction. Here in Arkansas (I'm from California) notaries generally have no training and I did not want to have an inexperienced notary replace me, at risk to the borrower. A weaker person might have been more susceptible to the bullying tactics, so I considered it an act of service, as are all my appointments.

Reply by VT_Syrup on 11/21/12 9:01am
Msg #444247

Re: Report a loan broker -- depends on signer's mental state

Sounds like Reliable1's would-be signer was fully capable of handling his/her own affairs. Like many of us, I wear 2 hats; I volunteer as an emergency medical technician. If someone tried to cheat an elderly would-be signer who's mental ability to look after his/her own finances were impaired, I would would legally be required to report it to Vermont Adult Protective Services.

Reply by ReneeK_MI on 11/21/12 12:38pm
Msg #444276

RESPA and Reg Z do not arbitrarily apply to investment prop

There are caveats, and I'm not going to elaborate because the information is out there. The point I'd like to make is that while I firmly believe we should have a working knowledge of the laws that govern the industry we're associated with - they are complicated.

It may well be that this particular loan did NOT fall under either RESPA (for the HUD & GFE) or Reg Z (for the TIL/pre-disclosures), and the lender may have been trying to explain that to the borrower in all their good faith (if that's a pun, pardon it!), but the borrower was not understanding, or felt less than certain about what she was being told. An NSA can inadvertently influence a borrower's sense of things, and one needs to be cautious when faced with something they might, themselves, be confused about.