Wilmington Finance, A Division of AIG was acquired through Lending Tree.com. They provided a low interest rate for a thirty year fixed mortgage. They offered Great Loan programs that surpassed other competitors. With that said, I chose them to finance my Mortgage Loan.
The problem arose 6 days before Closing Date. Broker called indicating that the rates would have to change due to a New Jersey Statute passed earlier during the week. According to the broker, the Mortage commitment Loan possessed a 5% Prepayment Penalty. The NJ Regulation only permitted up to 1% Prepayment Penalty. Hence, their banks want to change the terms of the contract and increase the origination fee (additional $1700), as well as the interest rate by 0.25 %. I refused to the new terms. I began to perform the following:
-consulted with a lawyer
-called the Regional Manager & president of Wilmington Finance
-called Lending Tree.com
-initated complaints with the Attorney General of PA and NJ
-filed complaints with the Better Business Bureau.
Needless to say, this scam is the classic Bait and Switch. I requested in writing from my broker his reasons for changing the terms of my Mortgage Loan, as well as the NJ Statute to be identified that is causing the aforementioned changes. He flat out refused and indicated that "the company does not do that". Even with a Good Faith Estimate, and a Mortgage Commitment Letter stating the original terms of the contract on hand, the broker was courageous to pull this type of scam... Unbelieveable!!
0 comments