Sung A asked:
Hi
Year 2006 I purchased house ($625K). I hired mortgage broker and he applied loan for me. BB&T was my lender and loan was approved in 20 days. I put $125K for deposit and got $500K loan. Last year one of my friend told me that BB&T is not a wholesale lender. There must be a loan officer. I was wondering because from the begging to the end I was contacted by my mortgage broker. He was acting like BB&T was a wholesale lender.
I requested full documents from the lender and I reviewed it. When I saw Loan Application I was confused because it was not 1003 Loan Application. It was Bank’s Retail Loan application. I am not sure but I think that retail loan application is for personnel loan, student loan, or home equity loan etc NOT FOR RESIDENTIAL PURCHASE LOAN… * I said I am not sure.
And my loan is-5 years Installment loan- That means I pay $3400 for 59 months and 60th I have to pay about $400K. On settlement day I was out of town and mortgage broker told me that my father could sign the settlement documents if I give him on authorization (Power of attorney). So we did. I believe my father didn’t know what he was signing.
Q.1 They (Lender) don’t have to use 1003 when we apply for residential home loan?
2. Is there any violation that I was not contacted by Bank’s Loan Officer or others from Bank?
3. What do you think about my loan program?
4. Refinancing is my best solution?
Hi
Year 2006 I purchased house ($625K). I hired mortgage broker and he applied loan for me. BB&T was my lender and loan was approved in 20 days. I put $125K for deposit and got $500K loan. Last year one of my friend told me that BB&T is not a wholesale lender. There must be a loan officer. I was wondering because from the begging to the end I was contacted by my mortgage broker. He was acting like BB&T was a wholesale lender.
I requested full documents from the lender and I reviewed it. When I saw Loan Application I was confused because it was not 1003 Loan Application. It was Bank’s Retail Loan application. I am not sure but I think that retail loan application is for personnel loan, student loan, or home equity loan etc NOT FOR RESIDENTIAL PURCHASE LOAN… * I said I am not sure.
And my loan is-5 years Installment loan- That means I pay $3400 for 59 months and 60th I have to pay about $400K. On settlement day I was out of town and mortgage broker told me that my father could sign the settlement documents if I give him on authorization (Power of attorney). So we did. I believe my father didn’t know what he was signing.
Q.1 They (Lender) don’t have to use 1003 when we apply for residential home loan?
2. Is there any violation that I was not contacted by Bank’s Loan Officer or others from Bank?
3. What do you think about my loan program?
4. Refinancing is my best solution?
P.S. When I applied loan, mortgage broker got all my information on blank paper. He said “I will fill loan application out for you”.
I called mortgage broker….NO ANSWER
Heard rumor that he went to jail.
Thanks.
Student Loan Refinancing
Tags: Loan Application, Mortgage Broker
4 responses to Do we have to use 1003 Loan Application when we purchase residential house?
Fixed Rate Home Equity Loans
Well first off. I would check with a real estate attorney about the legal part of your father signing a loan like this. You could say that the broker sold you one loan and your father signed a totally different loan. So go see that real estate attorney.
Added part. I would go for a loan modification.
Do we have to use 1003 Loan Application when we purchase residential house?
Credit Report
You signed a blank loan application? That was a pretty big clue of trouble ahead.
Modify or refinance.
Unsecured Loans
BB&T does BOTH wholesale and retail lending. So the broker you went to see did what they call “brokered out” the loan to BB&T, so essentally, the broker was a middle-man.
There is no loan officer in a transaction like yours…there is what they call an “account executive” who handles the contract between BB&T and the broker until it closes and an “assignment of transfer” can be completed…BB&T essentially funds the loan.
A 1003 Loan Application is for MORTGAGE LOANS….this is the standard form that ALL BANKS and brokers are REQUIRED by federal lending regulations to use.
There was no violation…this was a straight forward transaction…unfortunately, you didn’t care to be at the closing, because it wasn’t that important to you..and sometimes there is a price to pay for that.
Just because you didn’t do additional research, doesn’t mean anyone did anything illegal.
If you gave your father a Power of Attorney (which must be signed and recorded along with the note), that bears the SAME legal weight as if you were there.
So it doesn’t even matter if something changed at the last minute…YOU made the CHOICE not to be there.
You signed a copy of the FINAL loan application at closing and in the initial disclosures that you mailed back…it is a common practice for brokers to fill these out for clients so all they have to do is sign them with information that you supply…when you signed another copy at closing, your signature VERIFIED that you reviewed the document and you signed that it was ACCURATE.
When I owned my own mortgage brokerage…I did this all the time and it’s 100% legal.
Sorry…it’s not what you want to hear.
I can also tell you by the figures, you got ripped off on that loan.
Do we have to use 1003 Loan Application when we purchase residential house?
Credit Report
It sounds like you signed up for a 5 year balloon mortgage which means you need to refinance or come up with 400K to payoff the loan.
I have never seen anyone use anything other than a 1003 for a mortgage application.
If the loan documents that were signed at closing by your father were different from what you agreed to you may have a grievance to file with your local state attorney generals office. Just because you were not there to sign does not excuse the broker from pulling a switch on loan programs.
Do we have to use 1003 Loan Application when we purchase residential house?
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