Lender-Buyer Confidentiality: How Much Should Your REALTOR Know?

I've had agents rant and rave at me when I have refused to tell them something about my borrower that is privileged information.  What kills me is when it's the listing agent doing the ranting and raving! 

You're not only right about the fact that some information is indeed privileged, the borrower is protected from this information being disclosed without authorization by federal law!

Bob Mitchell

ValueList Real Estate Services, Inc. 

unfortunately not all of your fellow associates agree.

personally, if you refer a buyer, i would like you to know that the credit is satisfactory, that the funds to close are adequate, and that the income supports their request.

and yes i have paystubs, w2's, bank statements, and a tri merged credit report to support these comments, if necessary.

i do ask the buyer if it is okay to disclose this information in this manner.

now i need to be trustworthy in the opinion of all parties involved and if i'm not please do not ever refer another client because i don't deserve that referral. 

Darleen,

Once they are preapproved by a trusted lender, I have a confidence level to proceed.

I do pry a little if we are looking at a home that needs some work done to it to know they can buy and afford to do the work, or to learn how best structure the offer so they have the cash to do the work.

I agree that we don't really need to have intimate knowledge of the buyer's finances.  The only issue that may be different in my market, is that seller's often times require a copy of the credit scores when qualifying buyers.  I only ask the mortgage broker for the first page with the scores from the 3 reporting agencies.  They can "black out" any other information that would be considered personal.