I closed a loan to purchase a home two years ago. I talked to a loan officer and completed an application. I was told the loan would be amortized for twenty years on a two year adjustable rate which could change two percent at each adjustment and six percent over the life of the loan. I did not receive any loan disclosures after I completed the application and signed everything at closing. This is when I received an adjustable rate disclosure which stated that the rate could change three percent at each adjustment.

The loan officer said he would limit the change to only one or two percent, however, with the rates increasing recently, I received a notice that the rate had indeed increased three percent. I have left several messages for the loan officer, some being on their voice mail, and have not received any response back.

Any helpful advice on what I can or should do?

Thanks
J.A.

I don't know what size bank you are at but if its less than 500 million Go to the banks Credit Administrator or Senior Credit Officer and tell them your story. They will take it from there.

Over 500 million in size some banks have regions and regional credit managers.

Don't even try and get satisfaction from the loan officer. Take this to the banks senior management. You have a real problem as it sound like your word vs his word.

If no satisfaction you can file a consumer complaint with the banks regulator. You can also take legal action but based on what you have stated not much of a case with no proof.

Also - did you get this loan from a bank or from a mortgage lender? Mortgage lenders, for the most part, do not have federal regulators and you need to find out what state agency supervises them.

You may also want to look into an attorney to see what remedies you may have. If you don't know of an attorney, check with the Bar Association in your area to see if they can provide references for attorneys, or perhaps contact a legal aid clinic. Here is the referral service from the American Bar Association:

http://www.abanet.org/legalservices/lris/directory.html


The Federal Trade Commission has some information for consumers regarding mortgage loans:
http://www.ftc.gov/bcp/conline/edcams/credit/coninfo_mortgage.htm