Detroit Real Estate

I had to go to bat for my client last month.  A local Metro Detroit loan officer was trying to steal (money) home from my client. 

 My single woman home buyer was being victimized by a local loan officer.  She was buying a Oakland County MI Lakefront home.  When I first met my lakefront home buyer I called the loan officer to go over what my buyer needed in sellers concessions.  He told me she would need about 3.5% sellers concessions.  I point blank asked him what the closing costs would be in the beginning so I could figure out what was needed.  He had told me there were no points for the loan as my client had great credit.

Well tonight the night before closing my buyer got a big surprise.  Her closing costs were much higher.  Some of the things she was telling me made me nervous.  These were some tell tale signs that you should be nervous about a loan officer.

1. You ask for a good faith and you don't get one
2. You ask for a good faith again and you still don't get a copy
3. Your loan officer says not to worry about how much you have to bring to the closing
4. Your loan officer says you have a lot of money your account and doesn't understand that you need some of that money for car payments, your living expenses, and moving expenses

It's not all his money to spend on loan closing costs.  I didn't get the seller's concessions for him to up his origination fee.  This is what the new HUD form was supposed to stop, but it didn't in this case.  So I had to go to bat for my client.

I called the loan officer and asked what was up.  I reminded him that we had talked and he told me in the beginning what was needed.  So why did my buyer need more now?

He told me his $2600 origination fee covered the $800 underwriting fee and his $700 processing fee.  But what about the other $1100.  Well he went on to tell me he has to charge more for "harder" loans.  I asked him what about what he told me in the beginning.  No real good answer from him.  I said fine, that the buyer and I would call the home office in the morning and get a manager.  I left it at that when we hung up.  Well about 15 minutes later the loan officer called back and said he would give the buyer a $762 credit to reduce the closing costs.

My buyer agreed to take it and move on.  I am glad it wasn't one of my referred loan officers that did that.  My buyer had found this loan officer.  He worked for a good company, but....  I myself don't ever try to change a loan officer that a buyer has.  Unless the company is really bad, or the loan officer is attrocious I don't go there.  I haven't had that problem yet.  I feel the buyer knows what they are doing.

But this loan officer is going on my "DO NOT CALL LIST"

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