Is this Legal for lenders.

[Francisco Trejo]

Hello BP community, today i was notified by my loan broker that the rate on my loan just went up 5.75 on a cash out refi for a triplex here in L.A.  This is a no doc loan based on income from property.

I started this process with this broker back in middle of February. I locked rate with them for 60 days and loan officer assured that it wouldnt take that long to close.

Through this process i have been in constant contact with loan officer, i have been pressing him to close and everything has take what seems super long. Last month he told me we were scheduled to close April 15.  I started asking the week of the 15th about closing and he told me that the lender pushed it back to the 22nd.

He calls me today and tells me that the rate lock of 4.25 expired yesterday and that lender did not want to renew due to rates being higher. I guess my question is, is it legal for them to push loan to a later closing date , purposely to allow the lock to expire so that they dont have to honor that?

Just got me a little puzzled, now looking to change stratergy and not go through with refi.

Any input?

Thanks