Posted on: 13th Mar, 2010 07:06 am
Hello,
My wife and I used a Mortgage Broker to get pre approved thru, we then contracted on the home and signed the papers to get the loan stated. We paid for an appraisal and he sent us a Commitment Letter after he got us approved and locked in the rate.
However, our realtor said that we may be able to get a lower rate with her lender, so we applied with her Mortgage Broker who beat the 1st Mortgage Broker's rate, so we decided to go with the lower rate Broker.
Well, you would have thought we commited a mortal sin! Granted, we should have told the other broker we found a better deal, but he is telling us we owe him $5,375.00 of a Brokerage Fee.
Are we legally resonsible to pay this fee to him? He has retained an attorney and plan to take us to court!
What can we do????? HELP!!!!!!
My wife and I used a Mortgage Broker to get pre approved thru, we then contracted on the home and signed the papers to get the loan stated. We paid for an appraisal and he sent us a Commitment Letter after he got us approved and locked in the rate.
However, our realtor said that we may be able to get a lower rate with her lender, so we applied with her Mortgage Broker who beat the 1st Mortgage Broker's rate, so we decided to go with the lower rate Broker.
Well, you would have thought we commited a mortal sin! Granted, we should have told the other broker we found a better deal, but he is telling us we owe him $5,375.00 of a Brokerage Fee.
Are we legally resonsible to pay this fee to him? He has retained an attorney and plan to take us to court!
What can we do????? HELP!!!!!!
I didn't think Raymond or John would respond when it came down to attaching fact to their posts.
Like others, they really don't know!
Like others, they really don't know!
NY Joe, that looks like a response right above your last message.
Maybe you did not see it.
What state are you in? Or, what state do you think you can have a Broker Contract and sue people when the loan does not close? We'll be happy to check those state laws (not RESPA) and if you are correct we will be happy to admit we were incorrect for the state you are in. (The original question in this thread was for Michigan)
It could be I am like others, perhaps yourself, in that I really do not know.
Maybe you did not see it.
What state are you in? Or, what state do you think you can have a Broker Contract and sue people when the loan does not close? We'll be happy to check those state laws (not RESPA) and if you are correct we will be happy to admit we were incorrect for the state you are in. (The original question in this thread was for Michigan)
It could be I am like others, perhaps yourself, in that I really do not know.
You can not collect if you do not have a loan commitment under the same terms and rate as you quoted and contracted on.
But if a Broker obtains a Loan Commitment on the agreed rate and terms then they absolutley can sue...and they will win every time!
This F^&* you Mr. Broker, sorry about your luck, we decided to not go forward with the loan commitment you worked so hard to obtain on our behalf at the terms you promised and not pay the broker is Bull Shet and you all know it!
But if a Broker obtains a Loan Commitment on the agreed rate and terms then they absolutley can sue...and they will win every time!
This F^&* you Mr. Broker, sorry about your luck, we decided to not go forward with the loan commitment you worked so hard to obtain on our behalf at the terms you promised and not pay the broker is Bull Shet and you all know it!
Still do not know what state you are in? I knew you bwould not answer my question.
I'm in the state of pissed off! Pissed of at weak @ss brokers like you that fuel the overall perception that we brokers are SOBs for demanding payment of contractual obligations!
It's brokers like you that give consumers the feeling that they can use and abuse us is what makes me F sick!
It's brokers like you that give consumers the feeling that they can use and abuse us is what makes me F sick!
I agree with NY Joe.
Can someone tell us why it is that every industry's contracts in America can be enforced for services rendered or if the other party to the contract defaults, but how dare a Mortgage Broker demand that a borrower fullfill their Contractual obligations?
I beleive that a Broker can sue for their Brokergage Fees in CA. in small claims court.
Can someone tell us why it is that every industry's contracts in America can be enforced for services rendered or if the other party to the contract defaults, but how dare a Mortgage Broker demand that a borrower fullfill their Contractual obligations?
I beleive that a Broker can sue for their Brokergage Fees in CA. in small claims court.
you mortgage brokers are f'in crooks and I hope that every single consumer decides last minute to change their mind and you get screwed out of the time you put into the loan.
NY Joe & Mr Man:
As a potential buyer, I would rather do business with John & Raymond because it sounds like they are much more professional and do not hide behind an animated picture. Please let us know who you really are so we know to avoid you.
As a potential buyer, I would rather do business with John & Raymond because it sounds like they are much more professional and do not hide behind an animated picture. Please let us know who you really are so we know to avoid you.
I worked for both brokers and direct lenders and in no case was a client ever obligated to pay my commission unless he or she closed a loan with me. They did have to pay third party fees that I had incurred. And if they closed and exercised a right of rescission on a refi then I still didn't get paid. Knowing that borrowers who lock don't feel the same level of commitment as the lenders, most LOs I knew did not recommend locking before closing. Because if rates dropped they'd lose the client. Unless you are talking upfront mortgage brokerage services, in which the client pays upfront and then the broker finds the best rate available and secures a commitment. In that case you owe the broker.
Of course Raymond et all will not respond becasue they are 100 % wrong.
What the customer is doing is the same thing as calling your stock broker and asking him to buy stock and then if a week later the stock price goes down so he buys more stock from a different stock broker at a new lower price and trys to not pay for the first purchase, it's unethical and if the broker had him sign a contract then it certainly is unlawful. Wonder what the agent would say if the borrower had a friend who was an agent and siad , hey , lets go to the seller and write a new contract and I'll lower the real estate commission so he can reduce the price and still net the same from the sale , wonder how the agent would like that.
What the customer is doing is the same thing as calling your stock broker and asking him to buy stock and then if a week later the stock price goes down so he buys more stock from a different stock broker at a new lower price and trys to not pay for the first purchase, it's unethical and if the broker had him sign a contract then it certainly is unlawful. Wonder what the agent would say if the borrower had a friend who was an agent and siad , hey , lets go to the seller and write a new contract and I'll lower the real estate commission so he can reduce the price and still net the same from the sale , wonder how the agent would like that.
RESPA has a provision called Section 8. Section 8 prohibits settlement providers from collecting "unearned fees". You can't collect a broker fee when the borrower chooses to go elsewhere. A Section 8 RESPA violation is $10,000, 3 years in jail or BOTH.
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