I do not understand how REO agents and lenders can FORCE a prospective buyer to get pre-qualified for a mortgage with their selected lender.
This practice drives me crazy. I recently had a buyer call me after the deal feel apart with the selected lender. He went through the loan process and was given a specific rate.
13 days before closing he was asked to sign the FINAL mortgage brokerage business contract. He realized the rate and fees are considerably higher than what we agreed upon.
I do not understand how lenders can get away with FORCING a borrower to use their lender. The lender say they are not required to complete the loan with the selected lender. Trust me, the pressure put on the borrower to use the selected lender is very high. They will do whatever they can to get the loan.
It seems like their should be a law against this steering policy implemented by lenders and some REO agents.
I ended up closing the loan barely for the client. This is just ONE scenario of many nightmare stories concerning this abusive practice.
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