That's not nice to say. I have a relative who works as a subprime broker. He's had respectable jobs like Bally's fitness salesman and used car salesman. LOL.
Fla-tan Yeah, I know brokers get upset about working against another broker on the same loan. In a two broker situation, they have to work their butts off for a 50-50 chanvce at the deal. It sucks, I know. But what really sucks is being homeless if the broker drops the ball. Plus the buyer is out other costs as well, like earnest money, inspection costs, etc. If the mortgage broker industry was the type of business where clients could develop long relationships fostered in repeat business and trust, then I'd probably do things different. But really, most people will get only a few mortgages in their life, and once the rates start to climb again, there won't be much re-fi activity. So in actuality, its a process most people go through very infrequently, too in frequently to get any kind of track record established with any one particular broker. I'm up front about it with the brokers (done it twice). As you said, some say no thank you, but others always take the deal. When I explain that if the deal falls through the broker won't be the one sleeping in his car, they usually get where I'm coming from. And because I'm not a heartless SOB, the losing broker in both deals got a $1000 check mailed to them at closing for their work, although that wasn't part of the deal. I did it because I felt they both presented a deal that was viable and should be paid for the effort. It may have not been what they would have made, but it was something. Wichita
I do not see how they can do this. They made a commitment to give you this loan...Before giving you that commitment letter your loan had to go to underwriting. They promised to live up to that, what they decided after the fact does not matter. At least it shouldn't. How very scary!
Fla-tan Here is a link to a roundtable discussion about fraud in the mortgage broker industry. http://www.brokeruniverse.com/broker/ Although the industry representatives are talking about fraud in the documentation process, they speak about how low the industry has sunk, and essentially they say that greed from a few brokerages ruin the reputations of all brokers. Its ironic to hear mortgage broker professionals admit that the industry is competing with the used car business for the lowest reputation. And thats yet another reason why I have more than one broker working the deal. It makes prudent financial sense to do so. Wichita
Wichita That is why most of the business I do is either repeat or referral business. I have a reputation and I work very hard to maintain that reputation. One way not to keep it would be to get into low balling matches with other mortgage lenders. I don't operate the way most others do. And before you say anything, YES, I do think that is a problem with the industry. I do not believe in a cookie cutter approach to mortgages any more than I would subscribe to a one size fits all approach to medicine or law. Each borrower is different and each one has different goals. A mortgage should be a vehicle towards assisting in reaching the goals, not an impediment. That being said, you do business the way you feel you should and we will agree to disagree amicably. BTW.....ALL me business is built on trust. If my client does not have complete trust that I will do all I can to look out for their interests, then I don't want them for a client. I do have the luxury of saying no to a client just as they have the right to say no to me. fla-tan
It is often not very dificult to find negative articles and information concerning the mortgage industry. And yes, I agree there is fraud and alot of "cutting corners" and I would love for them all to be gone. Some day, hopefully soon, they will be. However, even now, the vast majority of mortgage people are ethical and work hard to perfect their craft and it is incombant on the consumer to do their homework as well, to find someone they can feel comfortable with and trust. Now don't get me wrong, I am not saying "Caveat Emptor", but I am saying that if a borrower asks questions and doesn't like the answers........DO NOT DO BUSINESS WITH THAT PERSON.........this is the same in all professions. BTW....I resent it when I get lumped with people of that ilk and I have walked away from borrowers who have indicated that they feel that way. fla-tan
Just a thought here, but could you re-negotiate the deal with the sellers and offer an additional 4000.00 that you could add to the 3% that they are already contributing? I would guess that they want to sell the home and have also paid for inspections, earnest money, ect and don't want to lose their new home either. coral
Same thing happened to a friend of mine a week ago, except their lender pulled out because of a CC charge for $800. The charge was on there when they first went through all the paperwork so it wasn't new to the lender. The DAY BEFORE they were suppose to close the mortgage guy called and said unless this $800 paid the deals off. I'm not saying $800 in anything close to $4K, but how can these lenders get away with this crap?
