Loan Officer messed up on Refi

7 Replies

Hello there,

Want to know what recourse I have in this situation. Loan Officer refinanced my investment home as a primary residence after I brought this to his attention a couple of times. He said it would be fine and did not change it. I now have to refi that same home again, within less than a month, and now pay for another appraisal and pay all of the closing costs. What recourse do I have? I really don't want to be the only one that eats these expenses.

Thanks in advance for your help.
Viola

Is the loan officer a broker, or a direct lender? In either case I assume that they have a E&O policy in place. So I'd reach out and ask them to do the refi start to finish with no charges to you and no increase in your loan balance etc. Otherwise you will need their E&O information so you can file a claim and have this fixed.

I can't go with the original lender now because I was purchasing another home and had to end up going with that lender when they found out that the refi was done wrong so that I could get to closing table on time and it is still a realll rush. I will get his E&O information and take that route. Thank you so much for your help. I appreciate it.

I think that you realized this was going to be a problem and in hindsight it was. It's too bad the person you were working with didn't attempt to correct it. I'm guessing they were inexperienced. In the future, you need to "insist" that the status is corrected.

@Viola Fisher if you have documentation of that communication and direct lender you will want to contact bank to share and see what if anything else hey can do and prevent loan officer from doing this to you (or them again) if it was a broker I would contact the lender they sold it to with the same information and hope they will assist you at a lower cost.

Regardless you should be able to reuse the same appraisal if done that recently.

I am being told that they will not use that appraisal from the new lender, although the end person that will hold the one is the same company. I have paid for the other appraisal already. I will check the text thread and see what I have. Thanks for your help.