STOP BUILDERS PREFERRED LENDER POLICIES

Time to go after the builders who continue to have you take your client to over charging preferred lenders.

This is how I stand up for my borrowers with builders who try and force people to use their preferred lenders. Here is the email I sent this morning to the builder trying to pull this crap with of all things, a Disabled Veteran. Stay tuned I will call this builder out by name if they try to continue this behavior.

From the builder:

Subject: Pre-approval letter

The letter states there will be a seller contribution of $4,500. We are not making any contribution since Dylan is not using our preferred lender. Please redo letter omitting that line and email me a revised letter.

My reply:

Good morning,

I want to make sure I am understanding you correctly. You offer closing costs contributions to everyone unless they use someone more competitive in fees and interest rates. And further you are saying because a Disabled Veteran made an educated decision to use my services you will not contribute. Your company does understand you have a license to build for veterans which is tough to get and now you want to penalize a Disabled Veteran and not contribute toward his closing costs like you would with anyone else as long as they use your over priced, over charging and higher rate lender? I want to make sure I have an understanding of this before I take this to the Veteran Administration. Can you please have your Sales Manager give me a call, I certainly don’t want to start any trouble if this truly isn’t the case.

Thank you,

Mike

It is illegal and immoral for builders who hold government approved builder numbers to require a borrower to use a preferred lender when it is a clear violation of Safe Harbor Laws and Anti- Steering Laws. For a builder to knowing send a borrower to a preferred lender that has higher costs then another and not offer the same conditions such as contributing to closing cost and pre-paids when an outside lender has better terms and conditions. It is time for realtors and lenders to take a stand. By allowing this to happen you cost your clients better service and better loan terms and costs. These are your clients and your reputation you are letting these builder OVER CHARGE. If I were to call all of your previous closed clients to refinance them I could save every one of them on their rate and payments, even the one that closed yesterday. What does that say about the builders preferred lenders and what does it say about you for letting this happen to your clients?

I will post the builders response once I receive it. Have a great day of selling and continuing to stand up for your clients don't let them be taken advantage of, take a stand and stop letting them steer clients to over priced loans. Texas and Missouri Realtors take a stand or take your clients to builder that doesn't steer your clients.