Can a mortgage broker charge a fee for a mortgage they couldn’t fund? application fees, etc?
Mr Yankee asked:
We started working with a broker, had an appraisal performed, submitted all required information. After a few weeks we finally received a gfe, the brokers fees were too high and we have taken our business elsewhere. Can he charge us for tasks he has performed?
we didn’t sign an application, we signed a form allowing them to check our assets
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We started working with a broker, had an appraisal performed, submitted all required information. After a few weeks we finally received a gfe, the brokers fees were too high and we have taken our business elsewhere. Can he charge us for tasks he has performed?
we didn’t sign an application, we signed a form allowing them to check our assets
July 14th, 2009 at 7:26 pm
Of course he can. Read the application form you signed. Undoubtedly it contains language indicating that you will be responsible for certain costs, whether or not the mortgage funded or was completed.
July 18th, 2009 at 2:00 am
no they can not charge you for anything, They are agreeing to provide a service and if you did not complete the transaction then you owe them nothing, It is actually a respa violation for them to collect monies if they did not fund the loan
July 18th, 2009 at 10:41 am
You’ll have to pay for the appraisal; if you paid an application fee, that probably won’t be refunded.
That’s about it.
Next time get the GFE before you do an appraisal. This loan officer should have gotten you a GFE about 10 minutes after he took your application. Better that you have moved on.
July 18th, 2009 at 3:23 pm
You should have asked for the GFE at the very beginning, when you get pre-approved.
You are responsible for the appraisal fee.
July 21st, 2009 at 5:19 pm
wow. they will charge you for the appraisal, but that also entitles you to use that appraisal with your new company, so you don’t have to do it again. that’s it.