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Guest

I'm currently pre-qualified with a local mortgage company that I've known for many years.

I'm in the process of submitting an offer on a house that requires me to be pre-qualified with another mortgage company in order to submit my offer. I understand this and have no problem getting pre-qualified.

My problem is that this second mortgage company is that they will pre-qualify me, but if I don't use them, that they will "write on the pre-qualification that I understand that I'm losing $4,000 in seller concessions"

Basically, if I want to ask for seller concessions in my offer, the only way I can qualify is if I use this other mortgage company.

This just seems so wrong, I thought there was some kind of anti-steering law that regulates this stuff.

Anyone have information on this?

chrisgummerson · Posted: Wed Jul 13, 2011 4:11 pm Post subject:

Seems like this would fall under a RESPA violation for Steering, but the seller does not have to give you a concession. The bank that is approving your loan, is probably giving an incentive to the seller to allow the credit. If you need the credit, move on to another property or go with the new lender. Good luck

Guest

Assuming they are doing something wrong, is there some kind of agency that regulates mortgage companies? Or some kind of board that reviews issues with mortgage companies?

It does no good to challenge this through the courts, by the time it is over, I've lost more in fees than I would have by losing the concessions.

Maybe if I could at least report it to someone that would review it outside the court system, maybe they won't do this to someone else...?

Posted: Thu Jul 14, 2011 7:31 am Post subject:

The problem is the seller is not required to give you a credit. If the lender said that you must use them, thats different. You have a choice for financing, and if they did not allow you to choose, then they would be in violation.

Guest

I'm asking for the seller to pay for closing. The 2nd mortgage company is telling me they won't let me pre-qualify for that, unless I use their company.

The mortgage person flat out said "I told you you’d be loosing four thousand dollars if you do not use Carrington" and later said if I want to submit an offer asking seller to pay closing, that I have to use Carrington as the mortgage company.

I have the entire conversation recorded, and I greatly feel like they are wrong here. Other than a lawyer, who can I take this to that will review this company's practices.

Posted: Fri Jul 15, 2011 1:47 am Post subject:

You can contact the BBB and report them about the company's practices. Contacting FTC can also be a good option.

jimgilly · Posted: Sat Jul 16, 2011 2:57 am Post subject:

Question - is this a new construction loan? Assuming it is and it is disclosed then this would not be a violation of RESPA.

Get a break down on the current numbers - including loan term (30 year etc) loan rate and fees. You may find out that the $4000 seller concession is being made up and then some in rate and fees. In these times (buyers market), I would think you should have some leverage so don't sign on with the second lender until you get more information including a comparison of all the closing costs.

gmakerley · Posted: Tue Jul 19, 2011 7:48 am Post subject:

Better Business Bureau is not the way to go with this. All lenders have supervisory agencies, and that's the appropriate avenue to go down. Find out who their supervisory agency is, contact them and ask all the questions that you have.

Guest

"Question - is this a new construction loan? Assuming it is and it is disclosed then this would not be a violation of RESPA."
- Not a new construction loan.

"Find out who their supervisory agency is, contact them and ask all the questions that you have."
- How do I find this info? The company is Carrington Mortgage Services

jveenstra · Posted: Tue Jul 19, 2011 12:04 pm Post subject: Lender

Every state has a banking dept or banking and insurance department or whatever name. Contact them.

What state are you in?

jveenstra · Posted: Tue Jul 19, 2011 12:06 pm Post subject: Complaint

You have a favorite local mortgage company.

You want to work with them and they want your business.

Ask them who you should call/contact.

Guest

I'm in Arizona. I'll contact the local one here, just figured I'd ask online in case there was anything I could do myself.

gmakerley · Posted: Wed Jul 20, 2011 11:54 am Post subject:

You may well be able to do these things yourself, but laws differ from state to state. If we provide you with generic answers to specific questions, you'll not get very far.

sabrinatoss · Posted: Wed Jul 27, 2011 1:25 am Post subject: hello Robert Douglas!

It would be more convenient on your part to ask for an expert's assistance regarding on your situation. Working on your own might lead to your disadvantage if ever you do things wrong.

gmakerley · Posted: Wed Jul 27, 2011 10:40 am Post subject:

Seems that was the intent all along, actually.

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