Lender Failed to Lock rate in time

[Peter Boutros]

Hello,

I have been working with a lender since October, 2016 to do a cash out refinance on my current home so I can invest in a different property. I filled out all the necessary paper work and signed the mortgage commitment form at 3.5% interest rate and sent all the required documents before the deadline.

I confirmed with the loan officer that the rate was locked in November. Just two weeks ago the loan officer comes to me with a new proposal of a larger cash out loan but 5% interest rate promising me rates will go down to 3.5% in June with a rate and term refinance. I knew something did not sound right and contacted their main office only to find out they had never locked my original rate at 3.5%. Now the rates are no where near that rate and cannot match it.

I was furious, I lost a great opportunity because of their mess up, lost the appraisal free and got my credit score pulled for no reason. They say they will refund me the appraisal fee but it will take 2-3 weeks (I have a feeling they will not send anything).

What would you do if you were in my shoes?