Complaint Rating:

Company information:
Homecomings Financial (GMAC)
Waterloo, Iowa
United States
homecomings.com

Back in 2006 I refinanced my house located in IL. The lender was Decision One Mortgage (now out of business) Subsequently the mortgage was sold to Homecomings Financial (GMAC) who now services the loan.

My question arose because when I tried to refinance recently I realized there was a 5% prepayment penalty on my current ARM loan for a period of 3 years. As I delved into this issue more, I discovered the Illinois interest Act that states a prepayment penalty cannot be charged on a mortgage that has an interest rate over 8% (mine is 8.59%). And as of July ’03 that included ARM loans.

If in fact the prepayment is not allowed, I will be able to refinance my house and increase my chance of affording the payments (I am not currently in default, however it is getting harder to afford). My mortgage broker can get me into a high 5% interest rate if it weren’t for this prepayment penalty.

I have contacted Homecomings by phone, fax (at their request I faxed the test of the Illinois Interest Act to their attention since they claim to never have heard of it) and email and they are not communicating back with me. I have contacted the OBRE in IL but it takes them 45 days to respond. HELP!