I just purchased a rental property. I used a mortgage broker. Two days before the closing she told me that we had to change lenders, but fees and rates would not change from the previously disclosed rate. At closing the mortgage broker told me it went up a quarter of a percent. Still a good rate. There was a contractual penalty for closing later, so I signed the loan documents. Was this a violation of the disclosure law? Can or should I report this?
The ethics rules applicable to the broker may be questioned here and if they were aware of the differences they should have advised you of the costs. As rental property this was a business purpose loan and the protections afforded you under the federal Truth in Lending laws and banking Regulation Z do not apply, so the lender didn't need to do anything unless your state has a requirement. Again, this is not common on business transactions.
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The ethics rules applicable to the broker may be questioned here and if they were aware of the differences they should have advised you of the costs. As rental property this was a business purpose loan and the protections afforded you under the federal Truth in Lending laws and banking Regulation Z do not apply, so the lender didn't need to do anything unless your state has a requirement. Again, this is not common on business transactions.
