Submitted by a LoanSafe reader; My husband as a CPA was approached many a time during the housing boom to help homeowners who tax returns or financial statements needed to be done to complete the loan. One mortgage broker in particular was placing a buyer combined income with his spouse was 70,000 gross into a home.
The mortgage broker was putting them into a 800K house with a 100K equity line at closing. My husband contacted the broker and told him, “These people cannot afford the house.” Reponse from broker, “I don’t care. I am making 20K on this loan. It’s their problem once they buy it.”
My husband gave the broker back the paperwork and said find someone else, I want to be able to sleep at night. They need to limit the brokers, because for 90 percent of them, its is all about the FEES, points and back door payments offered by the banks, not the customer.