dinoflex asked:


My loan officer changed my refinance loan from a conventional to an FHA loan. This has caused all sorts of problems because I am in the middle of remodeling my home and the repairs need to be finished for the FHA loan. Thanks for any help.

ALEXIS

5 Responses to “Can a loan officer change a loan type without your approval?”

1. Sally on October 31st, 2009 1:17 am

   FIDEL

   He/she was probably just trying to get your loan approved and conventional was not working out. Did he not discuss this change first?

2. TK on November 1st, 2009 7:56 am

   RYAN

   Ask for an explanation in writing. If you think it’s necessary, have your attorney ask for the written explanation. If the loan officer did something that violated your contractual right to obtain a conventional mortgage, then the bank may be liable you for real and punitive damages.

   Please consult a competent attorney to determine what rights you have and to demand that the bank respect your rights.

3. allardja on November 4th, 2009 9:45 am

   JOHNNIE

   It’s not possible to change the loan. You need to sign the papers. Is it possible that he changed the loan, then had you sign the FHA papers and you didn’t notice? If you did not sign the paperwork for an FHA, then you do not have a binding contract and you do not have that loan. Even the slightest changes to a loan need a whole new batch of disclosures signed. Go back to your closing documents and see what you signed.

4. Ed Atun on November 4th, 2009 11:10 am

   VAN

   This is a typical complaint. Everyone qualifies for FHA. Conventional is much harder. For some reason, you are not qualifying. You need to find out the exact reason why. That will make you smarter in the future when you need a loan. FHA accepts bad credit. The FHA loan costs you more which is the reason the lender is not allowed to switch you without your approval..

5. sherpa807 on November 5th, 2009 9:43 pm

   BRUNO

   Have you ever thought that maybe your loan officer doesn’t know what they are doing…also-if you could hurry up with the remodeling project maybe you wouldn’t have any worries…good luck…

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