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9/22/2017 12:11:25 AM
Posted: 12/8/2003 10:55:26 AM EDT
I have a question for you guys.

I bought a bigger house and I close on my house on wednsday.



Long story short, I have a+ excellent credit. The thing is right at the last minute they said they found a mark on my credit from a student loan. Sallie Mae financial is the lender.

They said the credit report said I was 30/60/and 90 days late. I have never been late on the account, NOT ONCE.

I called Sallie Mae and they said all of their borrowers are having the same problem. They said it was some computer glitch that just reported everything late when they did a data base transfer or some bullshit like that.

They faxed my mortgage broker a letter that said I have never been late and it was their fault.

Due to this "glitch" it looks like I might have to pay about a 1/2 point higher rate on my new home loan. My mortgage broker said he would write a letter that stated that and also would figure out how much a 1/2 point would cost over the course of a 30 year mortgage.

I have a real problem with the fact they knew there was a problem but failed to notify anybody so we could be prepared for such a problem.

So here is my question, based on the facts here, would you threaten or file a law suit to Sallie Mae?

I have never sued anyone before and I hate the out of control litigation that is going on this country. However, I feel truely wronged here and it IS going to cost me a lot of money for something that wasn't my fault.

What do you guys think?
Link Posted: 12/8/2003 11:03:07 AM EDT
[Last Edit: 12/8/2003 11:14:44 AM EDT by cluster]
the fair credit reporting act is there for just this reason... before you sue I think you have to be damaged first ie.. higher interset... or a denial. have you tried disputing this with the credit agencies,,? and if you got salli maie to say your clear why cant your loan officer do a rapid rescore ? try here [url]www.creditboards.com[/url] these folks will sue if they mail them the wrong type of collection letter [:)] so Im sure they can help
Link Posted: 12/8/2003 11:06:15 AM EDT
Class action lawsuit? I bet you get a check in the amount of $0.17.
Link Posted: 12/8/2003 11:23:35 AM EDT
[ROFL]
Link Posted: 12/8/2003 11:23:37 AM EDT
The mortgage broker makes his money by writing you a mortgage. No mortgage, no money for him. Tell him that it is a no go if the rate goes up. Play for keeps; if he thinks you will go along, you WILL pay a higher rate. He may even make a larger comission that way, I am not sure...
Link Posted: 12/8/2003 11:27:41 AM EDT
Link Posted: 12/8/2003 11:38:01 AM EDT
Originally Posted By lvgunner777: I have a question for you guys. I bought a bigger house and I close on my house on wednsday. Long story short, I have a+ excellent credit. The thing is right at the last minute they said they found a mark on my credit from a student loan. Sallie Mae financial is the lender. They said the credit report said I was 30/60/and 90 days late. I have never been late on the account, NOT ONCE. I called Sallie Mae and they said all of their borrowers are having the same problem. They said it was some computer glitch that just reported everything late when they did a data base transfer or some bullshit like that. They faxed my mortgage broker a letter that said I have never been late and it was their fault. Due to this "glitch" it looks like I might have to pay about a 1/2 point higher rate on my new home loan. My mortgage broker said he would write a letter that stated that and also would figure out how much a 1/2 point would cost over the course of a 30 year mortgage. I have a real problem with the fact they knew there was a problem but failed to notify anybody so we could be prepared for such a problem. So here is my question, based on the facts here, would you threaten or file a law suit to Sallie Mae? I have never sued anyone before and I hate the out of control litigation that is going on this country. However, I feel truely wronged here and it IS going to cost me a lot of money for something that wasn't my fault. What do you guys think?
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I think that in most lawsuits there are TWO WINNERS. 1) The attorney you are paying and 2) The attorney the other side is paying. Damages - often a missing factor in many suits. What you have are 'potential' damages (maybe) resulting from the 1/2% increase in rate over 30 years. Highly unlikely you'll keep this house for that length of time. IMHO, do what you can to lower the rate. Even if you don't get the rate lowered and like this place, close and forget about it. Oh, make SURE you send the letter of correction from Sallie Mae to your credit bureau 5sub
Link Posted: 12/8/2003 11:47:02 AM EDT
[Last Edit: 12/8/2003 11:49:16 AM EDT by cluster]
lvgunner777 after some quick reading... what you have there.. if in fact they say your clear and did not update the credit agencies is a "violation" that should eqaul $1000 in small claims without the need for a lawyer.. at least that what they say over at [url]www.creditboards.com[/url]
Link Posted: 12/8/2003 11:48:20 AM EDT
Find out which credit agencies are reporting that you were late and then dispute it with them. There is a 30 day window in which any disputed information must be verified. If it can't be verified then it has to be deleted off your report. You can do a 3 agency credit report for $40 online. Also one late payment like that should not affect your credit enough to through you into a different credit bracket. I'm in a borderline B bracket and still qualified for the lowest interest rate. I have 3 items that went to collections and were paid off. Bottom line is if the lender won't give you the lowest rate find a different one. What do you mean you might have to pay 1/2 a point higher? What does the paperwork that you signed say? If the lender changes the interest rate then they are changing the contract that you signed with them and you are no longer bound to it. Personally I think they are just trying to scam 1/2 a point off of you.
Link Posted: 12/8/2003 1:20:58 PM EDT
I would walk out if they upped it by 1/2 point due to credit if you have a letter stating it's the loan company's fault. I think that 1/2 point would go away real quick. I don't think a lender is going to lose out on tens (or hundreds) of thousands in finance charges over a little 1/2 point. A little over $2,000 disappeared from the closing costs on a house the wife and I were buying when we both got up and headed for the door. This is after I verified ahead of time what the exact costs would be and was surprised at the signing.
Link Posted: 12/8/2003 1:41:43 PM EDT
You are encountering the dreaded "last-minute-bump". This tactic often is joined by the "they-can't-bitch-too-much...if-they really-want-this-house" and is a staple for the less scrupulous of the mortgage brokers out there. The advise given so far is the best, just walk. My further advice would be to look at all of your options andthen go with a rival mortgage company. As a further note, your interest rate needs to be locked with the lender at least a day before your closing....maybe longer. If they are now saying that you are going to have to pay 1/2 a point to get the original quoted rate, then this is what probably happened: They never locked your loan and now they cannot get you the rate that they quoted. To shift the blame from them and on to you, they went over your credit report (BTW, the SAME credit report that they used to get you the loan in the first place) with a fine toothed comb in order to find ANYTHING that could cause a bump in the rate. This is a problem because there is NO SITUATION (in a standard Conventional conforming loan) that would cause a increase in the rate. The ranges for these loans is usually 3 pts from cheapest to most expensive.....and the lender does not care where in that range the loan is locked. In addition, creidt issues in the conforming loan are addressed way before the rate lock discussion. Basically, if you are approved for a conforming loan, then you get the rate range from the lender, it is up to your broker to set and lock the rate. So, if you have a problem with the rate, that problem is 1000% with your broker....I'll say again, walk.
Link Posted: 12/8/2003 3:10:59 PM EDT
Ok, good advice so far, thank you. The thing is, my mortgage broker is a friend of mine and has done several loans for myself and my family in the past. I boat with this guy, I shoot with this guy, and I play paint ball with this guy. He is a friend of mine. I don't think he is trying to screw me here because the Sallie Mae thing was brought up by the corporate underwriters of the bank, not the mortgage broker or even the first phase of underwriting. My score was lowered by this error and therefore my rate is 1/2 point higher than what it would have been if my credit was reported as it should have been in the first place. What really chaps my ass is those assholes at Sallie Mae KNEW they were reporting this wrong but failed to notify anybody. If I knew that there was a problem I would have acted accordingly.
Link Posted: 12/8/2003 3:38:13 PM EDT
I was under the impression that you could not sue over incorrect credit information unless the mistake was with malice or grossly negligent. doesn't sound like the case here, but I could also be wrong
Link Posted: 12/8/2003 3:41:20 PM EDT
For every $100k @ 0.5% interest for 30 years, you pay $7,708.22 in interest. So, for $200k you pay $15,416.45. However, I would think that in a courtroom you'd have to prove that you had to keep that mortgage for some reason; that you couldn't refinance. What else is wrong with your credit? One simple 90 day late doesn't bump you into another bracket. I know it's too little too late, but this is one more example of why your credit rating isn't something to fuck with.
Link Posted: 12/8/2003 3:41:41 PM EDT
Originally Posted By Avtomat: I was under the impression that you could not sue over incorrect credit information unless the mistake was with malice or grossly negligent. doesn't sound like the case here, but I could also be wrong
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Don't you think it is grossly negligent to know of the problem yet fail to convey that knowledge to the very same people it is going to hurt??
Link Posted: 12/8/2003 3:45:09 PM EDT
Originally Posted By norman74: For every $100k @ 0.5% interest for 30 years, you pay $7,708.22 in interest. So, for $200k you pay $15,416.45. However, I would think that in a courtroom you'd have to prove that you had to keep that mortgage for some reason; that you couldn't refinance. What else is wrong with your credit? One simple 90 day late doesn't bump you into another bracket. I know it's too little too late, but this is one more example of why your credit rating isn't something to fuck with.
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Good question about what is wrong with my credit, NOTHING, that's the point. I have NEVER, EVER paid anything late. So I am fuming about this, I mean, I am so anal about my credit it would make you laugh. I am borrowing about $240k after my downpayment so yes, this is a big deal to pay 1/2 point higher. My mortgage broker said that ordinarily it wouldn't matter much but Sallie Mae is reporting a CURRENT delinquency, that's the problem.
Link Posted: 12/8/2003 3:56:01 PM EDT
The thing is, my mortgage broker is a friend of mine and has done several loans for myself and my family in the past.
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Friends are friends, but business is business. Eddie
Link Posted: 12/8/2003 3:59:20 PM EDT
lvgunner, What type of loan are you getting? This information will answer most all of my questions and I can then give you my super duper answer for all time!
Link Posted: 12/8/2003 4:03:31 PM EDT
30 year fixed mortgage stated income due to me being self employed 6.5% Conventional loan
Link Posted: 12/8/2003 4:18:58 PM EDT
There is a common-law cause of action called "credit libel" which matches your circumstances. Sallie Mae might (justifiably) be open to punitive damages, since they know about the problem, have the capacity to correct it, and don;t do a GD thing abt it till they're called on it, case-by-case. It's worth a trip to a lawyer's officem esp since you appear to have significant actual damages. You shouldn't have to pay a consultation fee, but you might have to pay a retainer or cost deposit.
Link Posted: 12/8/2003 4:44:07 PM EDT
Originally Posted By lvgunner777: 30 year fixed mortgage stated income due to me being self employed 6.5% Conventional loan
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OK, here goes.... The real reason why you are being charged an extra 1/ pt is because there will be an additional 'hit' for a middle FICO of less than a certain number, most oftem at either 620 or most likely in your case 720. A 619 or a 719 will still get you the 'hit'. So that is what is happening, here is how you fix it. Get with a credit company (I can help if you need it) provide the documentation as to why this is an incorrect reporting and get the incorrect entry removed. If this is successful, you will have your previous score and then you can forget the 1/2 pt. Or, failing this you can always threaten your friend the broker regarding who is gonna pay for the 1/2 pt. or offset you APR charges. If this route is the one you want to go with, ask him for a 'broker credit' for a buydown to the original rate. He may go for it to make/keep you happy.
Link Posted: 12/8/2003 6:32:42 PM EDT
Originally Posted By wiggy762:
Originally Posted By lvgunner777: 30 year fixed mortgage stated income due to me being self employed 6.5% Conventional loan
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OK, here goes.... The real reason why you are being charged an extra 1/ pt is because there will be an additional 'hit' for a middle FICO of less than a certain number, most oftem at either 620 or most likely in your case 720. A 619 or a 719 will still get you the 'hit'. So that is what is happening, here is how you fix it. Get with a credit company (I can help if you need it) provide the documentation as to why this is an incorrect reporting and get the incorrect entry removed. If this is successful, you will have your previous score and then you can forget the 1/2 pt. Or, failing this you can always threaten your friend the broker regarding who is gonna pay for the 1/2 pt. or offset you APR charges. If this route is the one you want to go with, ask him for a 'broker credit' for a buydown to the original rate. He may go for it to make/keep you happy.
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You are right, I missed the "cutoff" by a very small margin. My friend/mortgage said he already is having the mistake removed through a company he knows of. He says it is around $150 total to have it removed from all three credit reports. He is covering the cost. Thank you very much for your input, you're not a mortgage guy are you??? [;)] So back to the original question, should I sue Sallie Mae for fucking me over like this??
Link Posted: 12/8/2003 6:41:56 PM EDT
Originally Posted By LS1Eddie:
The thing is, my mortgage broker is a friend of mine and has done several loans for myself and my family in the past.
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Friends are friends, but business is business. Eddie
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What he said. Either "we" do not have all the facts, or something is rotten in Denmark. Bob
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