APPROVAL LETTER STATES RECOURSE TO BROKER AND AGENT

Has anyone actually received an approval letter stating the bank reserves the right to come after the brokers and agents?

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Permalink Reply by Thom Colby 888-391-5245 CA Brkr on September 29, 2011 at 6:27pm

Not as yet....

Thom Colby

Broker,

Newport Beach CA

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Permalink Reply by Napua Lucas on September 29, 2011 at 7:42pm

No, why, have you received this?

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Permalink Reply by Jeff Payne on September 29, 2011 at 7:48pm

What? Have you?

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Permalink Reply by Kathy Scruton on September 30, 2011 at 10:44am

No I haven't. Who is doing it?

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Permalink Reply by Crystal Wilson on September 30, 2011 at 3:54pm

Not yet,,have you? I wouldn't be surprised if they start it.

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Permalink Reply by Jeff Payne on October 1, 2011 at 11:36am

Mary Lou, what was the purpose of this post? Did you recieve a letter stating that there could be recourse to broker and agent? What exactly did it say? What bank sent this letter?

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Permalink Reply by Beverly Cibulsky on October 1, 2011 at 2:50pm

Is Mary Lou confusing this with the terms of an "arms lenght transaction" form? Sounds like it. There is no way other than mortgage fraud, that a lender can come after " the broker or agent".

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Permalink Reply by Ray Snook on October 1, 2011 at 3:32pm

Seems like Mary lou must have received one by the title of the post "Approval letter STATES recourse to broker and agent". Not sure how they could enforce that since it would be the seller that signs to accept the terms of the approval. How could a seller sign for their listing agent to accept possible recourse? Not sure that would stand up in court... you cannot sign an agreement to pass liability to someone else!

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Permalink Reply by Smitty on October 1, 2011 at 3:50pm

I think there are some arms length transaction forms that put the agent right into the mix, but I wouldn't worry. I think the lenders concern is over fraudulent activities.