mortgage insider author photo

Here is the question:

T Smith asks:

“Does an electronically initialed loan application entitle the lender to charge a fee if no wet signature is ever submitted? Quicken Loans is charging me $550 based on my electronic initials even though they told me I was under no obligation unless I submitted the wet signature.”

My answers:

T. Smith,

I have warned folks about deposit fees many times here. The short answer is “yes”, they can charge a non-refundable, non-chargebackable deposit or “lock in” fee…and you’ll never see that money again!

You can also read my review in my Quicken Loans Review post.

Remember in real estate or when negotiating a mortgage, “verbal” terms don’t matter…so the real question is, “What Did You Sign?”… You’ll only know what you agreed to by reading what you signed. You obviously gave Quicken Loan the authorization to charge your card and with that authorization comes a disclosure.

Read that disclosure carefully to discover their rights and yours. You’ll probably find not only can they charge the fee, but you are not entitled to a refund and a charge-back on the credit card will not be granted since you signed away your rights to that remedy as well. We have seen application terms that punitive with some lenders.

Thanks for the question!

Author: The Mortgage Insider

Previous Post:« Are Loans Being Denied At a Higher Pace?

Next Post:

Tagged with: •

"Our Online Quote Service Is A Guaranteed Way To Compare Mortgage Offers Quickly." - Rob K. Blake, The Mortgage Insider ...Click Here!