My mortgage broker did not disclose YSP do we have any recourse?

Author: Rob K. Blake | Date: May 21, 2008 | Filed In: Mortgage Broker Answers

Here’s the whole story:

“The mortgage broker that we used to buy our home did not disclose a 2.5% YSP before the day of signing and we have since lost the home to foreclosure. We have all the docs that say what the interest rates were supposed to be, and then the jacked up rates that they presented to us at closing. (I signed the loan docs because I had two days to move out of the residence that I was already living in and was pregnant with a high risk pregnancy and didn’t want the last minute stress of finding living quarters until things worked out.) Do we have any recourse here?”

Well the short answer is “maybe”. Did they not disclose the YSP or did they disclose it the way they always do on the Good Faith Estimate by using a range ie. 0-4%…something like that?

Most companies are smart enough to do that and in most cases that’s enough to protect them from non-disclosure rules as it pertains to application documents.

When it comes to closing statement disclosure, the law today only provides for the borrower seeing the final HUD1 closing statement 24 hours in advance and that’s only if the borrower requests it.

Did you request to see the closing statement 24 hours in advance? Probably not…if you are like most borrowers…and of course the lender knew that too.

Either way, get a lawyer and see what legal remedies if any you actually have. I am not a lawyer…and you definitely need one.

Good Luck!

Author: Rob K. Blake