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?
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?
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