Climbing on a high horse this afternoon…
Earlier today, the office was checking on an unpaid inspection that was to be paid at closing. Surprisingly, they forwarded us an email where the mortgage lender told them they were roughly $250 short on cash to close, so he told them not to pay the Inspection Fees! Over the last several months we have also had mortgage lenders cancel our FHA Foundation Certifications after the Client ordered them from us. In one such case, we had already certified the foundation as FHA complaint, and the Lender’s person did $7,000 in work taking that amount from the Seller’s proceeds.
I’m not a mortgage lender, and I didn’t stay at a Holiday Inn last night, but I know that these things are the Buyer’s choice, and that in shape or form does the lender have the right to tell an Attorney that they should not collect the Inspection Fees. The Attorney in the first mentioned case, happened to be a friend so, I gave him a call. He provided me with emails where he asked if the Realtor, Inspector, and Buyer were aware of this change. The mortgage “Compliance Manager” from this lender replied in writing, that yes, all parties were aware, and the Buyer was paying outside of closing. In reaching out to the Buyer and the Realtor all emphatically stated they had no idea and the Realtor even provided me an email where the Mortgage Lender “Compliance Manager” told the Realtor not to worry about it on the Closing they were taking care of it – an email the Realtor forwarded to her Client. So, I called the “Compliance Manager” who said it was not his problem, to which I replied well the emails I have say differently. Fortunately, the Client said use the card I have on file and I will work on it with the Realtor and mortgage company.
So, I guess my thoughts are this. I realize it is busy and I realize everyone wants to get paid. This “Compliance Manager” basically placed a price on his integrity. That is something I just do not understand. We all make mistakes, but this was a blatant attempt to get the loan closed and, in the process, I would argue he is likely guilty of defrauding several parties. The worst part is, had he done things the right way, we would have happily worked with him, the Realtor, and the Buyer to get the deal done.
It also triggered some thoughts about why mortgage lenders are choosing inspectors. To me it does not pass the sniff test and opens a Pandora’s box. If anyone ever asked why – especially in the case of the $7,000 I mentioned above. How can a lender possibly defend that, but more importantly, why would they want to step that far out of their wheelhouse, or even consider placing themselves in that position to be questioned? I feel like I spend more time trying to make sure we are unbiased and without reproach than nearly any other task.
I encourage everyone to “ride their own ride” meaning do your own thing – yet, as professionals we have a responsibility to our Clients. It is not our money, our home, our future, or our choice – it is our privilege to have the honor of serving them…
Dave