Legal Question in Banking Law in Georgia

Quicken Loans - Mortgage Bait-And-Switch

My fiance and I was preapproved for a '6.375%' interest rate over the phone, however the truth-in-lending statement showed '7.019%'. I asked the agent why the statement showed that amount and she kept telling me over and over again that it would drop to 6.375% at closing. I asked her why it showed as 7.019 on the form and she kept saying it was just a formality. She also stated that we 'would not' have to pay closing cost if we had the seller agree to seller consessions. She stated repeatedly that we could have the seller pay all of the 5,000$ in closing costs. Later on the supervisor stated that we would have to pay 1200$ out of pocket and that the seller could pay up to 3,800$. He also stated that the agent never said that we didn't have to pay any closing costs, but she actually did many times. The recorded conversations prove it. I asked him if the taped conversation showed that the agent did state no closing costs and that we should disregard the interest rate, would he, as a representative of the company, agree to give us the 6.375% interest rate. He said he would if the taped conversation said otherwise. He thought about it for a second and quickly came back and refered me to legal. I want the loan, is there a case?


Asked on 3/19/07, 9:01 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Quicken Loans - Mortgage Bait-And-Switch

If your question is whether you can force them to provide a loan, presumably with no contracts executed, the answer is no. Your post, if anything, reveals that it is highly unlikely there was ever any agreement on the material terms, and "preapproval" usually is meaningless. The more important question is why you would want a loan from them if you feel they did something inappropriate.

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Answered on 3/19/07, 9:08 pm


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