Legal Question in Real Estate Law in Massachusetts

truth in lending laws, mortgages

perhaps someone can help me with this, i hope. we entered into a mortgage loan using a broker in 2006. these are some of the problems we have and i would like to know if anyone thinks there are legal issues with our note. (1) the broker wanted us to enter into an interest only arm. we said no and were assured by both the broker and closing attorney this wasnt the case when we signed. turns out we signed for what we didnt want and found out when we tried to refi(2)we worked with a broker who said ''we will get you the best deal''.. as it turns out they put us into a higher interest rate and got a commission called a spread yield premium for doing so. if we paid them to get us the best deal, and they were getting paid by the lender to put us into a higher interest rate product, is that legal? also, should the spread yield premium be disclosed as a finance charge? the broker is getting paid for giving us a higher interest rate, so should it be disclosed as such as the commission they receive is directly in line with the interest rate they charge us? if so, is this a violation of truth in lending laws for not being disclosed as a finance charge? not enough space to ask all my questions. these are the first of many.


Asked on 1/25/09, 1:16 pm

1 Answer from Attorneys

Re: truth in lending laws, mortgages

You probably have a claim for bait and switch as well as fraud in the inducement as well as possible violations of RESPA. I would start by contacting the Attorney General's Office and the Secretary of State and request that they investigate your situation.

Good Luck.

Read more
Answered on 1/25/09, 5:17 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Massachusetts