Mortgage Blog

Fiduciary Duty

February 19th, 2020 1:44 PM by Eric Fang

We are always talking about the Fiduciary Duty, we always work for the client, we were told so, we had the training on this , and we should behave and act like that as well.

But sometimes some one did not.

My client cancelled her loan today. It was not because she was not happy with me. It was because of the builder, or the associates of the builder. I do not own that company stock, if I do, I might complain to that company.

The story went like this, my borrower purchased a brand new property from the builder. We started the paper, the loan application, etc. I asked the purchase contract, the escrow contact info from the builder, from the agent.

But we did not get it until one week later.

First, the builder asked the buyer to pay $350 to release the contract to them. Then the person over there tried very hard to ask the buyers to do the loan with the agents the associate knows(or the builder lender). According to the borrower, either the associate or the builder will get extra $5000 from this transaction.

 And the borrower was very upset about it and decided to cancel this transaction and purchase another property from different builder.

The buyer agent asked today why the buyers cancelled the deal. I just ask him one question: Where were you during the purchase process, when the buyers need the help? Where is your Fiduciary Duty? You just wanted to earn the commission and do not do anything, and instead stood with the builder and did not do anything?
Posted in:General
Posted by Eric Fang on February 19th, 2020 1:44 PM



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