I would add one additional clue. Ask for references among other loan professionals even. If a fellow mortgage professional is willing to recommend another, that is likely very telling as most in the industry are not willing to do that for fear of competition.

Wed Jun 20 2007, 10:22

You can also ask for references of past clients. It's my opinion that any loan originator who has to "buy leads" may be less ethical or service oriented than a Mortgage Professional who's business is referral based. If someone has to "buy leads", they most likely do not have repeat business.
I also strongly recommend that you ask your Mortgage Professional if they will guarantee their Good Faith Estimate closing costs...if they won't...there's your first clue!

Sat Jun 16 2007, 19:39

"Here's a novel idea - also ask for a contact at a couple of the lending institutions to whom that loan originator sends loans"-------Not novel, brilliant, Cory! That's the perfect third reference check!

Tue May 22 2007, 17:18

I agree with much of California Mortgage Broker's response. The reputation of the company should be foremost, as well as how long that loan originator has been with that company. Companies who are on the up-and-up will not risk their reputation with an unethical loan officer.
That being said, references that a loan officer gives may be cherry-picked (usually are) and may be "vanilla" transactions that did not require any underhanded treatment. Likewise, I've heard of lenders who collaborate with unethical real estate agents, so that one is sketchy, too, unless the agent has a strong reputation.

Here's a novel idea - also ask for a contact at a couple of the lending institutions to whom that loan originator sends loans. They ought to know if they submit fishy loan apps.

Unfortunately, there are no good, easy answers. Due diligence on the part of the borrower is still the best approach.

I'm sure Mr. California Mortgage Broker has the same horror stories to tell - someone went to a cousin, friend, friend of a friend, someone that they trusted to watch out for their best interests, only to be taken for a ride.

Tue May 22 2007, 10:34

The originator's experience or company's reputation will dictate the answer to that question. Ask for references from 2-3 past clients and 1-2 Realtors. An ethical, experienced originator will be able to provide those.

Tue May 22 2007, 06:46