We have an unhappy mortgage customer who is challenging the terms of his mortgage loan. I want to make sure I'm not missing anything. I have combed Reg Z and the Texas Finance code....nothing.
The loan is a portfolio loan and under the terms of the loan, it is simple interest, 365 accrual method, no odd days, no PMI. Evidently, this customer was several days late on consecutive months and so now, his entire monthly payment will go all to accrued interest.....may not completely cover the interest due. The loan was prepared by attorneys who prepare all of our mortgage promissory notes....all the same way. The customer said that we should have provided him with some sort of disclosure about what would happen if the payment was late and that what we are doing is illegal. He says that the note should be under an amortization schedule where the interest is divided equally amongst all the payments.
Like I said, I just want to make sure I'm not missing something before I advise the loan officer how to respond.
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