higher-interest loan
Question: My understanding is that you have to get one BY LAW. I don’t think this is optional… “RESPA” requirement??
You might have asked him to “explain these numbers to us”, when you saw that suddenly you were borrowing more than you thought, and you might have bought a little time to see exactly what you were being gouged for… The fact that he “snatched them away” really really makes me think they were screwing you over.
Take a look at this: http://www.fdic.gov/regulations/compliance/respa/ and this one, too: http://www.hsh.com/pamphlets/respa.html
Answer: Yeah, I really think he was trying to screw us over, too. Also, the closing was at a title company, and before we began, the title company person asked the mortgage broker (rather pointedly, in retrospect), “You’ve already gone over these figures with your clients, right?” When she learned that he hadn’t, we did go over the figures. But that doesn’t help us know what customary fees are vs. what he was trying to charge us.
I am guessing that he procured a higher-interest loan than he *could* have obtained in order to earn a higher finder’s fee from the bank. He must have thought we wouldn’t notice that our payment would be higher (sleazy), or, even scarier, he hadn’t looked over the numbers carefully and hadn’t noticed, himself, that the new payment would be higher than the old payment (incompetent). So we are left wondering which adjective he deserved, sleazy or incompetent?
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