Question:

Can you cite some mortgage broker scams?

Answer:

Mortgage broker scams are part of the practice for many brokers as they are infinitely better informed and seasoned compared to 99% of the borrowers. Some brokers, and sometimes lenders, will play a lot of mortgage games to incur better profit.

Popular Mortgage Broker Scams

Not locking the loan with lender.

This is a common mortgage broker scam. Often entrepreneurial brokers will not actually lock the loan with the wholesale lender relying on rates going down while they demand you pay a lock fee. If rates go up, they'll pocket the lock fee, if rates go up they may try to negotiate a higher rate, or simply disappear.

Asking for junk fees.

In respect to mortgage broker scams, try to stay away from additional charging attempts on the part of brokers or lenders. They might suddenly remember they failed to mention a number of fees and now the borrower is too deep into the loan to walk off. Ask about as many possible settlement costs as possible to be revealed as early as possible to protect from this mortgage broker scam.

Suspiciously low mortgage costs.

Often a broker will offer a rate so low that it is not offered by anybody else. That means you have been lured by a non-existent offer and usually told it has expired but that you could try something else of their products. To avoid being scammed like that by mortgage brokers, you should just refrain from responding to offers that look too good to be true.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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