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IF A LENDER CHANGES THE AGREED MORTGAGE TERMS AT THE CLOSING, WHAT WOULD THIS BE AN EXAMPLE OF?

User Judex
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Final answer:

If a lender changes the agreed mortgage terms at the closing, it would be an example of bait-and-switch tactics.

Step-by-step explanation:

If a lender changes the agreed mortgage terms at the closing, this would be an example of bait-and-switch tactics. Bait-and-switch is a deceptive marketing practice where the terms or conditions of a product or service are changed after a customer has committed to the purchase. In the context of a mortgage, this could involve altering the interest rate, loan duration, or other key terms that were initially agreed upon.

For example, let's say a borrower was promised a fixed interest rate of 3% for a 30-year term. However, at the closing, the lender changes the terms and offers a variable interest rate of 5% instead. This would be an unfair and dishonest tactic by the lender.

User Anthonyserious
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