THis is the general agreement I signed with a mortgage broker who states:
The agreement is between (“Mortgage Broker”) and (“borrower(s)”) in connection to the mortgage loan for the property located at House.
Borrower(s) understand that during the loan process, lenders may ask for more documents to
verify certain conditions. Borrower agrees to provide the documents in timely manner and
understand(s) that not following this can cause delays in loan closing.
Borrower(s) understand that the rates fluctuate regularly, sometimes more than once in a day,
till the time loan is locked and is not fixed till rate is locked. Rate could be locked only after the
application is filed, all documents are submitted, and all disclosures are acknowledged.
Borrower(s) understand that the rates can change after lock also if any of the characteristics of
the loan changes since it was locked. Loan amount, LTV ratio, term change is few of
characteristics.
Borrower(s) understand that breaking a rate lock will have financial implications.
Borrower(s) promises that he will not file the loan for this property with multiple lenders and
Kumar home Mortgage is the lender he has decided to go with.
Borrower(s) understand that not following this agreement may result in delay and
complications in loan closing and can have financial implications for borrower(s).
He also states on the following page around refiing within 6mo post closing resulting in paying commission:
The agreement is between (“Mortgage Broker”) and (“borrower(s)”) in connection to the mortgage loan for the property located at home.
Under this agreement, borrower(s) agree (s) to maintain the loan applied for the captioned
property for a minimum period of Six months from note date.
In the event that borrower breaches any of the above, borrower(s) agree(s) to pay broker earns from the lender including any
closing cost paid by broker.
Signed by Borrower Signed by Loan Officer
Is this legal? This contradicts to the Right of Resciession as per mortgage refi as long as its not with the same mortgage company. I know its a seperate agreement outside of the application but does this override given laws? I'm looking to get out before closing as rates have significantly gone down. Can someone chime in?
