Etrade is being investigated for it's alleged practice of holding on to the $400 deposit for a set interest rate on their new mortgage which was never refunded. Also fees charged for various other reasons and never credited back to client.
E Trade Mortgage Corporation and E Trade Bank Misinformation Violations
Period 1999 to present
FACTS:
In September 2001 someone attempted to get a loan from E Trade on his home. The prospective borrower was quoted a rate of 7.255 and charged a lock in fee of $400 that would be refunded at close of escrow. The loan applicant was required to return all documents listed on an enclosed checklist within three calendar days or forfeit the "lock deposit." If an applicant provided all the required information but his or her loan was not approved by the lender "based on income qualifying or credit," the agreement provided that the lock-in fee would be refunded. If, however, the loan "fail[ed] to close for any other reason," including the applicant's decision to cancel the application, the lock-in fee would not be refunded. Also problems with the advertised interest were lower than your lock in rate.
Other fees charged and not refunded were $600 or $1000. Allegedly, these fees were never refunded. The Truth In Lending Act and Federal Regulation Z were designed to protect your rights as a user of consumer credit and to minimize these kinds of abuses.
People in California who took out mortgage loans with E-Trade between 1999 and present and were given the loan application documents and took out a loan based on those documents that included the $400 lock in fee used to lock in the rate they quoted and/or gave their credit card number to pay a fee of $1000 or $600 and then submitted the application and other documents for review, please complete the following form. It is believed that these that these fees were possibly advertised as being refundable.
