Full disclosure before I ask my question. We don't offer secondary market loans, nor do we offer "rate lock"...

A co-worker applied for a Rural Development loan through a secondary market company. When I was reviewing the paper work, I notice that the transfer taxes were not disclosed. Also, the loan amount lowered and the lender did a change circumstance. I understand that, but what I don't understand is the fee appraisal fee increased. Why would a lower amount increase the appraisal fee?

We called the lender and she said that she could change the fees and would provide a new good faith estimate at closing with all the correct amounts. I thought was called the “HUD”

The GFE was issued on 08-01-2014. Line one on the GFE is 08-01-2014. The second line is 08-11-2014 (which is not at least ten business days). Also, my co-worker was provided with a rate lock agreement on Wednesday with a new an expiration date of 10-10-2014. How come the agreement was not provided back on 08-01-2014? Even if it was a “conditional” rate lock, wouldn’t my co-worker have to sign an agreement?

Yesterday, the lender the told my co-worker if she expected a tolerance cure for transfer taxes she could move her loan. Hopefully, my co-worker will file a complaint against this lender

If this is a refinancing have your co-worker close the loan and then rescind within the 3 business days. The bank then has to refund all fees and charges your co-worker has paid them or a third party.

If it's a purchase loan I definitely would move the loan. The co-worker definitely needs to file a complaint with the Bureau.

If moving the loan will cost your co-worker the house they want to purchase, you might suggest they call Rural Development directly. RD may be able to salvage the loan by forcing the secondary market company lender to comply.

No matter what, this bank/lender needs to be reported.