Have you ever had a loan officer change the financing on your contract? I recently had an offer with a large cash down payment and the balance was to be paid by a conventional mortgage. I kept in touch with the loan officer to make sure the appraisal was in and we were going to be closing on time. She kept assuring me everything was on schedule and she did not see a problem closing by the date on the contract. Two days before the closing I called to see if we had a time for the closing and she told me the bridge loan has not closed and once it closed we would have to wait another 3 days before we could close. There was nothing on the contract about a bridge loan but she thought that would be a better way for the buyer to finance their home. The buyer was in breach of contract, the closing was two weeks late and the seller was furious. What would you do??
Dear Connie,
I have never had that kind of problem! Smoke would have been coming out of my ears!
Have you used this lender before? I don't think I would ever use her again!
Connie , not much you can do lending changes per second, I am a realtor and loan officer why I have my partners handle that side of my business I hate second to second changes. It closed be happy. 
Hi Connie, Oh, I wouldn't have been happy about that at all either. Don't throw a wrench in the deal just before closing. I hate that. Have to think long and hard as to whether to use this lender again.
Hi Connie,
I am a mortgage broker and a branch manager. What this loan officer did was borderline a violation of their fiduciary responsibility to their client. The loan officer also has a duty to notify the agent of any changes that could affect the outcome of the purchase/sale in a timely manner. I think this LO was a rookie. Common sense tells you there is a lot at stake when handling legal contracts.
I would bring it to the attention of the LO's supervisor/broker. I would also find out who recommended the loan officer and if they too are a real estate agent I would make sure to share this info.
I blame the LO's management for poor training and lack of accountability. They are tarnishing their reputation with industry professionals that could have brought them more business. Worst of all their incompetence hurt the seller and could have had legal consequences for the buyer. At this point not much you can do if the loan and sale has closed but I personally would hold the management accountable and let them know if this repeats itself you will make sure to share with others in your community about your experience with their company.
I think it is very important to keep the buyer and their Realtor informed about what is going on or what stage the loan is at when it is in process. With that said, loan officers are only allowed to share so much information with someone who is not technically their client. While I try to keep everyone informed, if the buyer wants all the financial details kept between them as the buyer and me as the loan officer, then I can't really breach their confidentiality by divulging info to another party, even their Realtor. Of course I have no idea whether the buyer instructed the LO to keep their info confidential or not but this could be the case. Any LO who divulges private information that is not expressly authorized to do so puts themselves at risk of litigation.
Connie, I hate to say it because the loan officers are kind of calling the shots right now. It has happened twice to me. In my 2 last transactions...
Connie, this is certainly one of those occasions that justifies putting gum in her hair.
Sounds like some potential liability to me. Both the buyer and the lender should keep you appraised of any changes.
Connie,
I would think twice before using this person again. There are so many good loan officers why settle for one who does not keep you in the loop?
Ann Hayden in rainy Wildwood, Missouri
HI CONNIE! Typically, when lenders say, "No Problem" - I start looking for some right away and ask a ton of questions! Good luck! -- Gabrielle
Is this one of your normal preferred lenders? If it is I would put them on notice that if they don't keep you in the loop, they will be taken off that short list of preferred lenders. If your client loses this house, I bet it will be you that takes the fall, not the loan officer.
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