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Buying & Selling Real Estate
Account Closed
  • Lender
  • Tampa, FL
168
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Ways to prevent Builders from Coercing and Steering a Loan Originator's contracted borrowers?

Account Closed
  • Lender
  • Tampa, FL
Posted Apr 18 2014, 13:22

Does anyone know of some ways to prevent Builders from Coercing and Steering a Loan Originator's contracted borrowers, who they've obtained a Loan Commitment for, to their "In-House" or "Preferred" lenders?

This has been a tactic of Builder's for quite some time. A buyer comes to them to purchase a home, their "In-House" or "Preferred" Lenders can't get the borrower approved or can't offer the loan programs the borrower needs or desires, so they contact another lending source.

The other lending source is able to obtain a Loan Commitment for the borrower, then 30 to 45 days before the home is completed, the Builder's Title Company contacts the Loan Originator fore the Mortgagee Clause and then forwards this info to the Builder's Lenders.

Then, the Builder's Lenders implements their well choreographed assault on the Loan Originator's borrowers to Coarse and Steer them back to doing the loan with the Build's Lenders.

Anyone know of some ways to stop them in their tracks?

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