My wife bought a condo before we were married. She got a loan from Countrywide which is now part of BofA. Several years later, we met with a mortgage broker to inquire about the possibility of refinancing.
The mortgage broker we talked to at that time, investigated the original countrywide loan and he was surprised that they had put her into that particular loan, because he said the particular mortgage she used to buy the condo was intended for sub-prime borrowers with bad credit and she should have been able to get a much better interest rate. My wife had excellent credit and a very high paying job (and still does.) when she bought the condo and should have qualified for a much better loan with a better interest rate than the one that they sold her.
After doing a little bit of googling, I read that countrywide used to encourage mortgage brokers to sell these crappy sub-prime loans to people even when they qualified for a better loan, by offering a higher commission to the brokers for the crappy loans. In California where this happened, Mortgage brokers have a fiduciary duty to their clients.
Do you think it would be worth it to pursue a case against BofA over this? All we would really want is for them to refinance into a type of loan for people with good credit instead of this P.O.S. sub-prime type of loan. We are not able to refinance normally because my wife is underwater on the property.
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My wife bought a condo before we were married. She got a loan from Countrywide which is now part of BofA. Several years later, we met with a mortgage broker to inquire about the possibility of refinancing.
The mortgage broker we talked to at that time, investigated the original countrywide loan and he was surprised that they had put her into that particular loan, because he said the particular mortgage she used to buy the condo was intended for sub-prime borrowers with bad credit and she should have been able to get a much better interest rate. My wife had excellent credit and a very high paying job (and still does.) when she bought the condo and should have qualified for a much better loan with a better interest rate than the one that they sold her.
After doing a little bit of googling, I read that countrywide used to encourage mortgage brokers to sell these crappy sub-prime loans to people even when they qualified for a better loan, by offering a higher commission to the brokers for the crappy loans. In California where this happened, Mortgage brokers have a fiduciary duty to their clients.
Do you think it would be worth it to pursue a case against BofA over this? All we would really want is for them to refinance into a type of loan for people with good credit instead of this P.O.S. sub-prime type of loan. We are not able to refinance normally because my wife is underwater on the property.
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