From: sasmlb@pecos.unx.sas.com (Maria Moore)
Newsgroups: misc.consumers.house
Subject: Re: Mortgage brokers
Date: 14 Apr 92 14:44:27 GMT
    <1992Apr9.122702.11627@clpd.kodak.com> <1992Apr13.200433.6381@tc.fluke.COM>
Organization: SAS Institute Inc.
X-Bytes: 3786

In article <1992Apr13.200433.6381@tc.fluke.COM> eeng@tc.fluke.COM (Ed Eng) writes:
>In article <1992Apr9.122702.11627@clpd.kodak.com>, staffan@ca.serum.kodak.com (Kenneth Staffan (x37507)) writes:
>> 
>> I wonder how you wouldn't see this.  The "Good Faith Estimate of Closing
>> Costs" is supposed to itemize everything.  Now if it is built into the
>> application fee or something, then you should be able to see the difference
>> from other broker's/bank's application fees.
>> 
>Just curious, having gone through refinancing like everyone else, how accurate
>was your good faith estimate to the final closing costs?  My closing costs were
>$400 over not counting daily interest or taxes (basically just paper work
>costs).  That was about 25% off.  It was explained "this lender had the best
>rate but required these other document fees".  The escrow fee was about $150 off
>and explained by the escrow agent that the mortgage company used the wrong rate
>to calculate the good faith estimate.  At that point a person is not in a
>position to negotiate these costs or threaten to take the business elsewhere
>so these unexpected charges get paid just to get the process over.  Maybe I was
>lucky that it was only $400 over.

We just recently bought a house with a new 15 year conventional loan where we
put 20% down and waived the escrow account and used a mortgage broker.  Add one
more variable - we live in Austin, TX and the mortgage broker was located in
Dallas so everything was handled over the phone, fax, or Federal Express.

At closing the settlement charges were quite a bit different than what the
Good Faith Estimate had outlined.  Not only were some things higher but two 
things showed up that weren't even mentioned on the Good Faith Estimate and one
thing that was down for $0 on the estimate we were charged $85.  Our realtor
and the title company person both said they had never seen so many fees.  So
we called our broker so he could explain them.  The fee which was listed on the
Settlement Costs but not mentioned on the Estimate, he didn't know what it was
for but we had to pay it anyway.  The other charges he explained by saying,
"Well this is Dallas".  So yes we paid all the charges at closing but I didn't
let it stop there.

Afterwards I wrote a letter to the manager of the mortgage broker outlining each
charge that I had a problem with and why.  I included a copy of the Settlement
Costs and a copy of the Good Faith Estimate.  At the end of the letter I 
requested a refund for some of the items.  I copied the letter to the Dalls 
Better Business Bureau and the Attorney General's Consumer Protection Division
which has an office in Dallas.  (By sending copies to these agencies, you will
usually get results.)

Two days later the manager called me.  He was very pleasant and we went over 
each of the charges I had a problem with.  He explained where they came from 
and why I was charged the amount I was.  He also agreed that I had a complaint
on at least one of the items.  Two days later I had a check in hand from the
mortgage company.  About a week later I received another check from the 
underwriter for overcharges made by them.  (Not all the items I complained
about were paid to the mortgage broker but they were the ones I sent the letter
to since they were the ones we represented me.)

So I sent followup letters to the BBB of Dallas and the Attorney General's 
Office telling them that the matter had been resolved to my satisfaction.

You may not be in the position at closing to argue about things but that doesn't
mean you have to settle for whatever they say.  Do your research, read the
book that was given to you covering Settlement Fees published by HUD.  Then
write letters to do something about the injustice you feel.