Is it Inappropriate for an Agent to Request a GFE?

heres the simple answer to your post, if a Realtor or Anybody else is calling on behalf of the actual client and is just getting prelim numbers then they will just get that a GFE that is basically very GENERIC because its not tied to a real borrowers application, what are the credit explanations? what type of loan we going for? do you have the SSN and DOB to pull credit? do we have all docs to prove assets and income? So unless I run a full complete application the GFE's will be very generic, its only fair.  I am sorry you can't find a loan officer who can provide GFE's on the fly, hope you find a good loan officer!

Your blog has brought up some great discussion and this shows some spunk I like it. So it sounds like your looking for a new mortgage person to be a business contact for you. So what I would start with is asking past clients of yours that did not work with your mortgage person but had their own for a referral to them. I would then do a call with them see if their is a personality and ethics match. Then I would set up a meeting with them and bring a GFE and closing hud from one of your deals that you did with your old lender for one of your clients. YES PLEASE BLACK OUT THE NAME AND ADDRESS for legal privacy reasons. Then review this HUD with the mortgage person and tell them that you think these fees are normal and fair and ask them there thoughts on your feelings.

The bottom line is anyone can throw a GFE together as an outline but the reality is like others posted things can vary from program to program. In the end rates differ with the market. You should again be looking for somone reasonable on fees but also someone that has a very HIGH customer service rating and approach.

I am sure you do not discount your fees to get listings and you most likely sell against people that do. In the end we all want referrals so we must proivide reasonable and competetive rates and closing costs. But again the service and communication will make the diffence to the client. Let me know your thoughts

Try asking them for a CV, bio, or resume.

Trundra... I ask for a GFE all the time.. I want to know so I can best serve my clients.. This is a great tool for both the buyer and the seller

I always have my clients ask for the GFE after the mortgage broker has had a chance to interview them and then we go over it together. While I may not know as much about their loan as the mortgage broker, I can usually figure out the costs to my client and suggest a second opinion (another mortgage company) if costs look excessive. Sometimes it pays to shop around. This decision is always up to my client.

You are on the right track.  Everyone who is on my list of "recommended" lenders is ready willing and able to provide a GFE -- and will do so based on different senarios.  I intereview the various lenders who approach me and beside asking for some assurances about their business practices and the health of their companies, they must provide GFE and willing to spend time with buyer.  Good luck.

Congrats on the feature....

I wanted to come back and claim this italicized/copied post as mine. I was logged out for some unknown reason.... the grape juice I was drinking must have turned hard. ;-)

it happens

I don't hmmm or hawwww........

I simply state to the realtor: "Please ask MY CLIENT for a copy". That is a lot easier than bothering MY CLIENT to have them call me to give their permission to forward an estimate done in good faith to a realtor

Does my radar go up when a realtor asks for a GFE? Heck yeah!!!!! Because that is a sign that the realtor is 'steering' 90% of the time(in my experience). Of course, I am not judging you personally..... I am judging the 90%.

I really feel for this young single mother who i counseled recently. She was 'steered' by her realtor and made a bad decision. The realtor's 'buddy' lender told her what she wanted to hear. I told her the truth. In the end.... she realized her mistake and was too embarrased to come back to me. Her confession came later.... when she referred a coworker to me rather than the lender who did her loan. <= speaks volumes!!

While some may have their client's best interst at heart.... most don't! They only care about 'the deal'

Really... very good topic. We have different rules in each of our disciplines; (i am speaking to you as a realtor, not as a Mortgage Loan officer or Stager that you seem to be all of).

I guess I'm spoiled too.  My Mortgage Broker is a jewel.  It's just as important to establish a rapport with a lender as it is the homebuyer(s).  All parties need to work together as a team, in order to get the transaction closed and everybody paid.

A lot of mortgage brokers, and I used to be one so I speak from first hand knowledge, won't go through the effort for a GFE unless they have a solid idea that they're working with the client. But the client should ask for one and not instantly on Day 1. Maybe within three days of communication, 10-03 in hand, credit run. I know that I have sent current clients to Lending Tree just to see what happens and have told them to ask for GFEs. (I don't do loans anymore because I like sleeping too much.)

It has been amazing to see the response from both retail and wholesale people through the Lending Tree system. Those who provide a GFE in 24 hours or less are my kind of lender.  Personally, I would only prepare a GFE if I had checked bank statements with my own eyes and run credit.  Commitment is mutual.  And I don't think I ever ran one and didn't get the loan.  It will not go to you, it goes to the borrower.  Please don't ask for it yourself. Have the buyer ask for it.

Clearly Trunda you had a good realtionship with a professional broker in the past and hopefully will find another soon.  I myself as a broker enjoy a teriffic relationship with a number of Realtors and do not hesitat to provide them with a copy of the GFE at the time I provide it to the the buyer, with their consent of course.  If there is nothing to hide then there is nothing to hide.  I make it clear to all parties what the loan program is and why, in my opinion, that is the best option.  When the buyer, Realtor (sometimes both agents), and the broker are able to work as a team the transaction goes more smoothly to the benefit of all.  Clearly you know what you are looking at and looking for on a Good Faith Estimate and I believe if you saw anything troubling you would ask the broker for an explanation prior to telling the buyer that they were being taken advantage of by a preditory lender.

Had to come back and congratulate you on the featured post.  This subject has started quite a few discussions.

Chuck

We are the largest real estate company in the area and thus also have an in house mortgage company.  That mortgage company is backed by Guaranty Bank.  We have two underwriters working in our office that underwrite all of their loan packages.  Yes, I deal directly with the underwriters.  I'm not sure what goes on at your bank or brokerage.  This is the way we operate and it works quite well.

I think it's the agent's job to get the GFE!  The lenders I use provide it within minutes of talking to the client, and once we have a contract they narrow it down.  I had no idea it was an issue.  Silly me!

Patricia, can we please have the names of your lenders that, without delay, send you the clients personal information with out their permission. They need to be aware that their is an information disclosure form that the client signs that gives permission to 3rd parties and then they need to disclose any 3rd parties that they want to or not include.

Michael To answer your question, I work for a Bank now, but I previously worked for a brokerage. If your company ownes the in house lender, it is probable a broker that brokers loans to the bank...then the bank would underwrite them. Guaranty Bank is an actual bank and has branches. If it doesn't say Guarenty Bank on their door, they are a Broker, if it does, they are a bank and I am sure your Real Estate Company doesn't own them.

Reading these responses has been very enlightening, thanks for asking the question.  I've been fortunate to have some wonderful lenders to work with.  Knock on wood...

When I bought my home, I expected my realtor to get involved in every aspect. So I say way to go! You're the type of realtor I'd want representing me.

Sheri did you ask your Realtor how to change the toilet bowl ring?

 "Point" I am not a plumber, but I have changed a ring before. But that still doesn't make me a plumber. I am not sure I did it right, but it doesn't leak now...which still doesn't mean I did it right...maybe in a year or two it might leak and I will find out I did it wrong...but then it is too late and the damage will be done and I will have no recourse. Same with the electrical...just because I can change a light bulb, doesn't make me a real electrician. Though I can always pretend to be an expert. And can probable convince you that I know what I am talking about.

The Mortgage is the Broker or Bankers job. The sale of real Estate is the Realtors job. A Realtor seeking out a Loan Officer to "stear" their clients to because the Loan Officer gives the clients private information to the Realtor...can you say "RESPA"?

Just because someone is going 20 mph over the speed limit, and doesn't get caught, doesn't mean that it is ok to do it.