Broker: Lender amended contract after client signed

Broker: Lender amended contract after client signed

Broker: Lender amended contract after client signed Brokers advise clients to diligently read the fine print but what happens if the contract is changed after the client signed?

“My latest exercise is the collateral mortgage issue and I’m not a fan of it,” Don Blair of Mortgage Tech Corporation told MortgageBrokerNews.ca. “I had discussed a traditional mortgage with a client and the client signed for a traditional mortgage and when the paperwork got to their lawyer the lawyer pointed out they were signing for a collateral mortgage.”

According to Blair the document was altered by an employee at the lender’s head office.

“I advised the client to sign and that I would resolve it with the lender,” Blair said. “The lender has agreed it is their error and they will get the client to re-sign … I had to push a little bit but they got back to me within 48 hours.”

The experienced hasn’t soured Blair’s opinion of the particular lender and he still plans on sending them business in the future, despite what he feels was a mistake. Especially because the issue was rectified in a timely manner which, as many brokers can attest, is not always the case.

“With all the back-and-forth we have to go through with lenders, they’re making it really hard on us,” Domenic Luciano of Verico Premier Mortgage Centre told MortgageBrokerNews.ca. “They often don’t explain the details about their products to clients.”
 
6 Comments
  • Steve 2014-07-08 11:59:35 AM
    "They often don’t explain the details about their products to clients.” That's what you're there for. If you want the lender to expalin the product, then why does the client need to come to you, they should just go to the lender. Your job as a broker is to advise and educate, not just process.
    Post a reply
  • Jerry Quigley 2014-07-08 12:29:26 PM
    Well said, Steve!
    Post a reply
  • John Woods 2014-07-08 12:31:47 PM
    I am guessing that this may have been a bank as they are the main lenders who register collateral mortgages. I hope you got your clients a good rate oh and you did explain that along with the good rate came an increase in their potential penalty obligations as per Steve's comment that your obligation is to advise not just process.
    Post a reply