Harry Gross: Take action to correct lender's 'mistake'
Dear Harry: I have been having a great deal of trouble with a newly refinanced mortgage. I wanted to get a lower interest rate, and I did. The new mortgage payments will save me $171 a month. At the time of closing, I signed a bunch of papers. Among them was an agreement to pay $57 a month for a private mortgage insurance (PMI). However, the payment booklet shows the PMI at $64. I have written to the lender several times, and now have called three times, only to be told each time that the $64 is correct. I cannot reach a supervisor. I wrote to the bank's president and got no answer. I was always told that a valid contract was binding on both parties. I know the amount is small but it'll buy me some great hoagies through the year. How can they do this to me?
What Harry says: They've done it. Now the problem is to get them to honor their agreement. Barring some contingency statement in that contract, they should honor the rate specified. Contact your congressman and request that he send a letter to the bank's president with a copy to the mortgage department. Also call the Federal Trade Commission at 877-FTC-HELP and notify them of a violation of the Truth in Lending Law. "Mistakes" like this are unfortunately not at all uncommon.
Write Harry Gross c/o the Daily News, 400 N. Broad St., Philadelphia, PA 19130. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.
