Legal Question in Real Estate Law in Illinois
I was strongly advised to hire an attorney. Due to possible mortgage fraud. I�m a bit confused on all of this. I have been trying to work something with my mortgage company. But that hasn�t worked out to well either. I was advised to get counsel due to the terminology will be over my head. At the time of the original mortgage that broker contract I was unemployed. I was behind in mortgage payments and taxes when the loan was obtained. Open and closing take placed the same day at my home. The interest rate seems to be usage. And after trying to obtain how much of a percent my broker was paid, payment was never disclosed. I tried several times to obtain that and never to this day received an answer. Can you please let me know my legal rights and what all this means?
2 Answers from Attorneys
You should have an attorney review the relevant documents to determine whether there was mortgage fraud. To determine how much your broker was paid, you should look at your HUD-1 or HUD-1A Settlement Statement. Broker compensation should be on page two, and may be shown as a POC item (paid outside of closing) and is often labeled "yield spread premium" or "broker compensation" of some similar name.
Take your mortgage papers, together with ALL of the copies (you kept, right?) of the application and related forms, including Good Faith Estimate, etc., to an attorney. As to the Broker compensation, it may be the company's compensation, not the individual you worked with. So let's say the base rate was 6% and you were paying on 6.25%, that means the spread was the equivalent of .25% against the loan amount. The company itself may make the entire .25%, but the broker you worked with may only get a thin slice of that.
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