ADR BLOG

Why In-House, Unlicensed Mortgage Loan Officers Can Cost You $50,000

May 8th, 2018 11:42 AM by Andrew Walter May

Just last month a former client that relocated to Virginia (we fund NC and VA mortgages) called in a panic. The client had just put down a $100k deposit with a builder and was now reading the fine print. The fine-print forced the client to use the in-house loan officer (at a $12k additional cost). Similar stories abound with Real Estate Agents that refer first time home buyers and move-up buyers to what has become known as the highest cost channel of distribution in the mortgage business: the in-house unlicensed loan officer.

Real estate agents and builders have set up networks of these low-paid, under-performing, "loan officers".  They are rarely state-licensed and all "professionals" are associated with the same desire - get your loan closed and you in the property at a higher cost across the board. There is seldom any independent advice and all parties are singing from the same hymnal.

I get these calls all the time. What can I do? I'm stuck. I can't get away from my referred unlicensed loan officer (who won't take my calls, yells at me, treats me poorly). In the case above, I provided a genuine Closing Disclosure so the client was able to save 1/2 of the additional charge (they weren't willing to come close to matching true market rates).

Where are the regulators you ask? There are no state banking regulators when it comes to credit unions and banks that affiliate with large realty firms. Therefore, it's 1980-something and these consumers get pancaked in fees that aren't disclosed (I know many Realty firms that charge $500 per transaction for the owner - which you are told about near the end of the transaction).

What can you do about it? Get educated by using Google. Go beyond the BBB report to the CFPB (consumer financial protection bureau) and other websites (consumeraccess.org) that show you who you are dealing with. It takes 5 minutes to get a feel for what your experience will be like, based on others comments on the web. 

At ADRMortgage.com we've had 0 BBB complaints ever to date, are transparent, compete on rate and service, and take pride in taking care of our customers. You are treated like family here. So, next time your real estate agent refers a builder, a unlicensed loan officer that happens to sit in/near the same office as the real estate agent, or you find out that the people you are dealing with have more than one complaint, call us. We'll let you know if you are getting a high-cost ($10k+ more in fees) run around. 

www.adrmortgage.com. NMLS 88010. 103418. 
Posted by Andrew Walter May on May 8th, 2018 11:42 AM

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