WARRENVILLE, ILLINOIS -- We signed a good faith estimate on 7-6-01 showing an origination fee of $1012.50. Lowestloan waited until the day of closing on 8-3-01 to switch the origination fee to $1414.00. We had paid $199 plus an appraisal fee of $305 before closing. We were told on the day of closing if we decided not to go forward with the loan we would also not be getting this $504 back.
To help keep me as a potential future customer, I would like the following:
The Good Faith Estimate that was originally forwarded to our borrowers showed "estimated" total closing costs of $8,433.25. This total is comprised of $6,332.00 in "estimated" closing costs and $2,101.25 as "estimated" Prepaid Items/Reserves. There were various other Good Faith Estimates that were forwarded to the Persads throughout the entire loan process due to the fact that they expected the numbers on the "estimate" to be exact. We did our best to accommodate our borrowers, as we always strive to do. Throughout the loan process, our communications also included the borrower's attorney, which I believe may have confused the issue more. On the day of the closing, the borrower's attorney contacted us while they were at the closing table to argue that the Good Faith Estimate was still incorrect. I don't know how the borrower's can say we pulled a bait and switch with them when their actual closing costs
totaled $6,390.60 with a breakdown of $5,161.30 in closing costs and $1,229.30 for Prepaids/Reserves. The actual closing costs total figure is actually $2,042.65 less than what we estimated on our Good Faith Estimate. I would hardly call that a bait and switch tactic.
We will, however, be refunding the $199 we collected as an application fee. That fee, which was taken in good faith for the borrower to proceed with their loan, should have been refunded at closing.