Mortgage Broker Contract
This contract is
between:
Name(s)
of borrower(s):___________________________________________, the “Borrower(s)”
or “you” and
Name
of mortgage broker company:___________________________________________________,
located at
Address
of mortgage broker company:______________________________________________, who
has authorized
Name
of mortgage broker:_________________________________________________________ to
enter into this
contract
on its behalf. In this contract, the mortgage broker company and the
mortgage broker are called “I” and the entity which will provide your mortgage
loan funds is called “lender”.
Contract
term: This contract will expire on ____________________ unless extended.
Who
Do I Represent?
I
represent you. I
am your agent and I owe you a fiduciary duty. I owe all others a duty of fair
and honest dealing. I will strive to get you the best loan terms possible
that meets your stated loan objectives. I will shop for your loan from
among ________ lender(s). I will charge you a fee for my services but I
will not receive any fee for your mortgage loan from a lender. All lender
paid rebates or service release premiums will be credited to you through
escrow. You may use lender rebates and service release premiums to pay
recurring and non recurring closing costs or prepayment penalties only.
I represent you and I represent the lender. I
am your agent and the agent of the lender. I owe both parties a fiduciary
duty. I owe all others a duty of fair and honest dealing. I will shop for
your loan among ______ lenders(s). Once I have procured your loan
commitment I will process and originate your loan as the agent of the seller.
I will strive to get you the best rate and terms and I will strive to
provide the lender the highest possible loan quality. I may charge you a
fee for my services and I may also receive an additional fee for your mortgage
from a lender.
I do not represent you, I represent the lender. I
am the exclusive agent of the lender and owe the lender a fiduciary duty.
I owe you and all others a duty of fair and honest dealing. I
arrange loans from lenders and get paid by lenders as their exclusive agent.
I do not charge you a fee from services. I make loans available
from:
 One
lender (name of
lender):___________________________________________________________________
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among
(number) _________________________ lenders. |
Mortgage Broker Contract |
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What
Will I Be Paid?
For
arranging your loan of up to $_______________________ at an interest rate of
______ % and term of _______ years on a _______________
(fixed/adjustable) (attach Program if other than fixed), I will receive
no greater than ______ % (percent) of the loan amount or $
____________________.
My
Total Compensation will be made up of: ______________________ plus
________________________
Fees you Pay Me
Fees a
Lender pays me
($ amount and/or % of loan) ($
amount and/or % of loan)
Lender
Rebate:
(applies when you select a higher interest rate to receive a lender credit at
closing)
You
will receive: ______% (percent) of the loan amount. or $
________________ credit from lender at closing to be applied to my recurring or
non-recurring closing costs in exchange for selecting a higher interest rate.
If
you would rather pay a lower interest rate, you may pay higher upfront fees; if
you pay less up front, you may pay a higher interest rate. Before you
sign this contract, I can display alternatives for you.
The
amounts disclosed here apply only if you qualify for this loan.
We
agree to the terms of this contract. By signing below, the mortgage
broker further certifies that the information in this contract is accurate and
complies with all provision of section 8 of the Real Estate Settlement
Procedures Act and 24 CFR part 3500.
_________________________________________________________________________________________________
Borrower(s)
Signature &
Date: Mortgage
Broker Signature Date:
_______________________________________________________ ______________________________________
Borrower(s)
Signature &
Date: Mortgage
Broker License No. (where applicable)
_______________________________________________________ ______________________________________
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Borrower Broker Agreement (BBA-1) 06/07 |
Mortgage Broker Contract |
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Attention
Borrowers: Know Your Rights!
This
may be the largest and most important loan you get during your lifetime.
You should be aware of certain rights before you enter into any loan
agreement.
1.
You have the RIGHT to exclusive representation for your loan transaction.
2.
You have the RIGHT to shop for the best loan for you and compare the charges of
different mortgage brokers and lenders.
3.
You have the RIGHT to be informed about the total cost of your loan including
the interest rate, points, and other fees.
4.
You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement
charges before you agree to the loan and pay any fees.
5.
You have the RIGHT to know what fees are not refundable if you decide to cancel
the loan agreement.
6.
You have the RIGHT to ask you mortgage broker to explain exactly what the
mortgage broker will do for you.
7.
You have the RIGHT to know how much the mortgage broker is getting paid by you
and the lender for your loan.
8.
You have the RIGHT to ask questions about charges and loan terms that you do
not understand.
9.
You have the RIGHT to a credit decision that is not based on your race, color,
religion, national origin, sex, marital status, age, or whether any income is
from public assistance.
10.
You have the RIGHT to know the reason if your loan was turned down.
11.
You have the RIGHT to ask for the HUD settlement costs booklet “Buying Your
Home.”
“Buying
Your Home” and other helpful information is available at HUDS’s WEB site:
http://www.hud.gov/fha/res/respa_hm.html
For
other questions call 1-800-217-6970.
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Borrower Broker Agreement (BBA-1) 06/07 |