As agents many of us have lists for referrals. Some may be for Contractors. Some for Handy men. But the two most common are lenders and, home inspectors.
Many of us are always looking for the best in these areas and have worked with many to hone our list to the right match for our clients. You do your job refer 3 of each and recommend the best. Many of these professionals are fine quality people and do a fine job day in and day out.
Then it all changes!
My wife and I had purchased a house last year that was in need of renovation. We do this all too much. We have poured money into it to get it just right. Well after all was said and done we decided to re-finance for a lower rate and pull some cash back out. So who do we call one of our Mortgage Brokers we refer.
First Broker was out of state but we had done previous transactions with them and several of our clients had used them with happy results. we made the application, got the good faith estimate, and had them send over a rate lock sheet. We were on our way. But then the call 2 weeks in and the lender he was going to use would not take the loan and the other lender would but with much less cash out. So we decided to get a second opinion.
So we called up our second favorite Mortgage Broker and he says no problem I can even do better. Better rate 
and the cash out we wanted. So we tepidly said lets do it. 3 weeks in and we have full approval from the lender my other mortgage broker said would not take the loan. What??? So we plow ahead excited to finally get this accomplished when we get the dreaded call " by the way the loan interest rate is going to be 1/4 point higher than what we quoted you". What again???? We have been very busy and told them to proceed but questioning the timing we were to close on the loan in days.
Well I get a call from my one of my other Mortgage brokers today (the day we are to close on our loan) just to thank me for referring another client. We strike up a conversation and what do I find out the loan we are getting is actually available through the lender we are getting it through for the rate we originally were quoted UGGG! Further more it was their standard published rate. I was in shock not 2 in a row. Not only was I approved at the original rate but they increased the fees also.
My other lender was gracious enough to e-mail me a wholesale rate sheet from the lender we were receiving the loan from. So I call my second lender and confront them on this he says that if they did the original rate they would be losing money. This from a lender we refer clients to and is currently doing a loan for one of my clients. I confront them with the rate sheet because they continue to lie about making money on the loan. When in fact they would be making over $5,000 at the original rate and almost $13,000 with the new rate. Were not talking sub prime here, it is a full documented loan with excellent credit and using a major lender.
Then it all comes out. They need to make more money because mortgages as a whole have slowed down. So I begin to put 2 and 2 together both lenders one out of state and one not directly in our area are charging customers more to make up the difference in volume. Now I think every one should make a living. But to get a client in a dishonest manner using competitive terms and rates and then change them for your benefit is despicable.
The moral of the story is these are trying times in our business and bad morals sometimes win out over doing the right thing. Thank God this happened to me and not one of my clients.
Be careful who you refer and do some checking sooner rather than later on who you are referring. Or you will find yourself throwing your clients to the wolves and maybe yourself with them.
Jason & Deanna
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