Upper Marlboro, MD asked in Uncategorized for Maryland

Q: Hello Lawyers, I recently bought a house in 2019 and closed with FHA docs. My servicer now says I have a Conv.

I did not refinance to get the conventional. I paid UFMIP an MIP in my monthly payments which is required for FHA, yet I have a conventional. None of my closing documents or Deed of Trust state that I have a conventional loan, only FHA. Shouldn't I have received a revised closing disclosure to sign? I contacted HUD and they verified that I do not have an FHA insured loan. I do not know where the UFMIP and MIP is going at this point. Is this misrepresentation and possible fraud for profit?

Related Topics:
1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Rockville, MD
  • Licensed in Maryland

A: Did you suffer any monetary damages? Are you out of pocket or will be out of pocket for extra payments you did not know about or agree to? If the payment terms are all the same, and there is no financial loss to you, then you have no basis to pursue a claim for compensation. It is possible that your loan terms or qualifications did not meet FHA guidelines and FHA declined to accept the loan, so your mortgage broker or agent found another lender willing to offer the same terms and finance your purchase. I imagine there were documents and emails and other communications with you leading up to the closing that addressed this, but perhaps were lost in the fine print and not fully explained to you. Regardless, you have not articulated any damage you have suffered on account of the change from an FHA to a conventional loan. You will need to pay someone to compare the FHA mortgage terms you thought you we getting with the mortgage terms you actually agreed to, and all the surrounding documents. If the remedy is that the closing and settlement are reversed, an you are returned to the financial position you were in prior to closing (which would mean you no longer own your home), are you prepared to pursue your complaint?

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.