Complaint Review: Castle Point Mortgage

I glad to report a satisfactory outcome to a lengthly and at times difficult process. However when all was said and done Adam Churchwell at Castle Point Mortgage Delivered as promised (although the interest was slightly higher by closing, but not by much).

After all was said and done Adam Churchwell put forward a tremendous effort and hung in until we got the mortgage as promised. The only drawback was the 120 days or so it took from commitment to closing. In the end Adam Churchwell acquitted himself and his employer well.

I would recommend working with Adam Churchwell and people at Castlepoint Mortgage for a new mortgage, re-mortgaging or a HELOC. My thanks to Adam Churchwell for hanging in and delivering on his word! Great effort Adam.
Bob *****

Robert,

This is blatant misrepresentation unless the discrepancy that caused the denial was based on inaccurate information that you provided in the application process.

You can get the bank to eat the appraisal fee, as it was ordered out of turn. It is their negligence, not yours.

Good luck.

Prior to Adam Churchwell's e-mail. I recieved by mail two copies of Castle Point Mortgage's financial documents (all signed by Churchwell) for my signature including 6 pages of 1003, lock-in/financing Agreement etc. The terms were not what we had discussed and Churchwell told me over the phone that a revised set had been mailed last week (I did not recieve the revised documents)I did recieve Churchwells e-mail instead.

Tim,

I was in the mortgage business and can see what happened here. Simply an overzealous loan officer who spoke out of turn. That loan app is shopped among dozens of lenders, and you are not approved until you get it in writing. This will be in the form of a rate lock notice stating that you have been approved for the loan, and the rate is locked for a certain number of days.

As far as the inquiry goes, it is a maximum of 5 points off the credit score for unlimited inquiries in that 90 day period in that trade line.

Permissible purpose was established when the 1003 was originated and signed, and a TIL statement issued. The TIL document informs the applicant that there are no verbal guarantees of any kind. The borrower reads this, signs it, and it is placed in the file.

The FCRA does not apply here. However, the banking commission in FL can persue a complaint against the lender involved for misrepresentation.

FYI..Legitimate lenders do not take credit cards over the phone nor do they send emails regarding the loan. Federal law requires written disclosure and a signed original document be in the applicants file along with the 1003. A letter of denial from the lender is required by federal law dated within 10 days of the date of denial. Then the applicant has the right to know the reason and to obtain any reports used in making that decision.

That may have been an FCRA violation. I'm not sure if they're going to fly, but I know of a couple of ongoing federal class actions (against different companies) where the plainitffs are asserting that these types of activities violated the FCRA.

By "these types of activities" I am referring to when a company leads you to believe that you are already qualified for a loan at given terms, thereby inducing you to consent to a check of your credit report.

When your credit report is checked, it lowers your credit score a bit, so there are tight restrictions on when it can be done. Consent of the reportee is one of the things that will allow for it. But when that consent is induced by false statements, it isn't legally effective.

And if there isn't any real consent, then the person checking your credit probably didn't have an allowable reason to do so.

When the FCRA is willfully violated, as may be the case here, the law allows for the victim to recover any actual damages, stautory damages of up to $1000, and attorney's fees.

My advice: find a local lawyer who practices consumer law or, at least, is familiar with consumer credit laws. Remember, if your claim is successful, the FCRA makes the other side pay for your lawyer.