The Federal Good Faith Estimate form was specifically enacted into law to prevent the exact “bait and switch” tactic that B of A attempted to perpetrate in my case.
Although “estimates” for such items as title insurance, overpayments (or underpayments) on the prior loan due to the timing of the closing, and other costs not under the control of the lender are obviously “estimates”, the financial terms of the lender must be accurate.
Once one applies for a new mortgage and one’s credit is run, pretty much forget about going to another source for a loan. So you are locked in with the lender and they know it. The Federal law enacting the Good Faith Estimate was a small battle won against the banking industry. I guess their lobbyists were on vacation that week.
And I wouldn’t gloat about mortgage brokers being exempt from this same behavior. I helped a friend review her her re-fi about 2 years ago where the mortgage broker tried to rip her off for about 2 points. In fact, I went to B of A because I had an excellent mortgage experience with them 5 years ago. I guess TARP has caused them to WARP.
