Lender wants to do something odd with my refinance closing

[Anonymous]

Is this legit?

Closing today, got the final CD today and it shows me bringing roughly $2k to closing. However we had discussed being at nearly $0. He noticed before me and called me up to discuss saying the CD was messed up but that he had a plan to fix it. Basically the entire loan origination fee was supposed to be credited back to me but only half was resulting in about a $4k swing in money at closing. (me getting $2k vs me giving $2k)

Rather than delay closing to revise the CD, he would prefer me just bring the $2k to closing and then he'll cut me a check for $4k when the loan closes next Monday. Ultimately I don't see how this would be a major issue except when I asked that he send me an email detailing the numbers, he said he would prefer to keep it out of writing and just over the phone but that nothing immoral or illegal was going on. That threw up red flags.

Thoughts? Should I be concerned?

[Anonymous]

I'd back out.

[Anonymous]

Anonymous wrote:Is this legit?

Closing today, got the final CD today and it shows me bringing roughly $2k to closing. However we had discussed being at nearly $0. He noticed before me and called me up to discuss saying the CD was messed up but that he had a plan to fix it. Basically the entire loan origination fee was supposed to be credited back to me but only half was resulting in about a $4k swing in money at closing. (me getting $2k vs me giving $2k)

Rather than delay closing to revise the CD, he would prefer me just bring the $2k to closing and then he'll cut me a check for $4k when the loan closes next Monday. Ultimately I don't see how this would be a major issue except when I asked that he send me an email detailing the numbers, he said he would prefer to keep it out of writing and just over the phone but that nothing immoral or illegal was going on. That threw up red flags.

Thoughts? Should I be concerned?

Your post sounds like you are asking if you should give an interest-free, collateral-free loan to a shady refinance lender, without putting anything in writing. But that would be absurd, so you must be asking something else that I'm not understanding.

[Anonymous]

Everything needs to be on the CD to be legal. It's a refi, so you shouldn't be in a huge hurry to meet the original closing date like you would be for a purchase. Just tell him to make it right and issue a new CD with everything correct.

[Anonymous]

Pretty sure it's illegal to have any financial arrangements that are not disclosed on the HUD-1 or whatever they renamed the form to with TRID.

[Anonymous]

I would back out and report him.

[Anonymous]

OP here. Also, probably should have done this sooner but decided to dig into the actual lender rather than the broker I'm working with. Looks less than ideal.

http://www.bbb.org/dallas/business-reviews/mortgage-lender/caliber-home-loans-in-irving-tx-90462848/complaints

https://www.yelp.com/biz/caliber-home-loans-dallas

Given that I've already paid for the appraisal, what are my options to walk away and go with someone else at this point? Can I re-use the same appraisal elsewhere?

[Anonymous]

Anonymous wrote:OP here. Also, probably should have done this sooner but decided to dig into the actual lender rather than the broker I'm working with. Looks less than ideal.

http://www.bbb.org/dallas/business-reviews/mortgage-lender/caliber-home-loans-in-irving-tx-90462848/complaints

https://www.yelp.com/biz/caliber-home-loans-dallas

Given that I've already paid for the appraisal, what are my options to walk away and go with someone else at this point? Can I re-use the same appraisal elsewhere?

I don't understand why you wouldn't first try to get him to adjust the closing date and give you the deal you negotiated. Maybe he's dishonest, maybe not but at least give him a chance. The loan disclosure statements are fairly straightforward so you'll know if he tries to do something funny with the numbers. If he won't honor the deal then tell him you're going to walk.

I doubt you'll be able to use the same appraisal since banks will want to do their own.

[Anonymous]

Anonymous wrote:

I don't understand why you wouldn't first try to get him to adjust the closing date and give you the deal you negotiated. Maybe he's dishonest, maybe not but at least give him a chance. The loan disclosure statements are fairly straightforward so you'll know if he tries to do something funny with the numbers. If he won't honor the deal then tell him you're going to walk.

I doubt you'll be able to use the same appraisal since banks will want to do their own.

Just got of the phone with him saying I would prefer to adjust the closing date and get the CD right. He pushed hard against that and claimed it would have financial repercussions for me on extending the window, etc. Seemed incredulous that I found it weird and was uncomfortable with the situation.

Spoke with another lender who basically said that he had never heard of something like this and that I was right to be concerned.

Honestly, the whole thing feels fly by night to me. My gut is usually right and at this point my gut is telling me to walk.

[Anonymous]

My husband is a lender. I just ran this by him. He said the lender probably made a mistake and wants to close to loan as-is but pay you outside of the closing.

You can feel free to call my husband if you'd like more info. I will post his contact info if you'd like!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I don't understand why you wouldn't first try to get him to adjust the closing date and give you the deal you negotiated. Maybe he's dishonest, maybe not but at least give him a chance. The loan disclosure statements are fairly straightforward so you'll know if he tries to do something funny with the numbers. If he won't honor the deal then tell him you're going to walk.

I doubt you'll be able to use the same appraisal since banks will want to do their own.

Just got of the phone with him saying I would prefer to adjust the closing date and get the CD right. He pushed hard against that and claimed it would have financial repercussions for me on extending the window, etc. Seemed incredulous that I found it weird and was uncomfortable with the situation.

Spoke with another lender who basically said that he had never heard of something like this and that I was right to be concerned.

Honestly, the whole thing feels fly by night to me. My gut is usually right and at this point my gut is telling me to walk.

Wait...I'm sorry...so the lender f'd up and is telling you that his mistake will have financial ramifications for you? How did he even tell you that with a straight face? I'm sure he means there's a cost to the rate lock extension but he should be eating that cost.

The only way I would maybe consider doing something like this is if he brought cash to the closing table. Like, simultaneously with you signing he gives you cash. I probably wouldn't even accept a check at the closing table since he could put a stop on it and you'd have to chase after him for the money. Otherwise, I would absolutely require him to make the adjustments to the credits now and absorb the loss rather than passing on his mistake to you.

[Anonymous]

It doesn't sound that sketchy to me, IF they'll bring cash or a certified bank check to closing. Closing numbers get messed up all the time, and it really can be easier to correct it with cash at the table than redraft everything. I don't see how it harms you. OTOH if he won't bring cash or a certified check, I absolutely wouldn't do it.

[Anonymous]

Don't do anything with anyone who says they would prefer to keep it not in writing. That is never above ground.

[Anonymous]

Anonymous wrote:Don't do anything with anyone who says they would prefer to keep it not in writing. That is never above ground.

+1 best case scenario (I guess) is he made a mistake and he wants to avoid a paper trail because he doesn't want to lose his job, worst case scenario is this is a straight up scam. Tell him to reschedule and prepare the correct paperwork or you're walking.

[Anonymous]

I wouldn't assume it's sketchy. It sounds like he made a mistake and doesn't want to delay your closing. I would want the agreement in writing. I'm not a realtor or a lender though.