Wells Fargo charged me for an appraisal, but then didn't refinance my mortgage. Am I entitled to a refund of the appraisal fee?
I went to Wells Fargo and they ran a scam on me. At wells fargo i applied for a refi & the mortgage banker needed to collect $485 from me up front to pay for a credit report & appraisal fee but assured me and my wife than nothing would be processed until he had a verbal approval from their underwriter that the loan would be granted. We were not approved and after receiving a letter from the bank I checked my visa statement and it showed that the full amount has been charged to us. It's obvious that the Banker is a liar and his word is no good. Another Bank is now working with us and asked if we received the appraisal we paid for - which at the time I didn't know we had paid for but didn't receive. I know banking laws have changed so bankers can't collect fees until they know they can make the loan, but this guy is either trying to pull a scam or doesn't know the laws. We did receive a copy of our credit report dated 3/16/10 which he gave me prior to signing anything or paying any money. My other Bank is using it to pre-approve our loan request before pulling their own report. My questions are what's the best recourse in dealing with Wells Fargo & what legal recourse do I have in being reimbursed these charges and exposing this Bank's lending practices. Is this a scam run by Wells Fargo?
It is not illegal to collect funds up-front for an appraisal. In fact, in the industry it is standard operating procedure to do so, so it sure doesn't sound like a scam run by Wells Fargo.
A loan will not fund before an appraisal is complete, if the lender required an appraisal. A loan is contingent on the appraisal demonstrating a certain value.
If the borrower does not have something in writing that states he or she is due a refund of the appraisal fee should the loan not go through, he or she has no real recourse.
However, I recommend you call Wells Fargo Customer Service and try to convince them that a refund is a small price to pay to assure that you will consider patronizing Wells Fargo in the future. I am not optimistic, however, that you will be successful, but it never hurts to try.
I hope this information helps you Find. Learn & Save.
The Latest on Mortgage Rates
It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate
Mortgage rates September 13, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of September 13, 2023 is 7.18%. This represents a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for September 13, 2023 is 6.51%. This is a 1 basis points decrease from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for August 17, 2023 based on Zillow date for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.27%
- 15-year conventional loan is 6.28%
Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,908. A 15-year mortgage would require a monthly payment of around $2,397.
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