Should I pay to mortgage broker after the escrow is closed?

Asked by Need Help, 92106 Tue May 4, 2010

Because there was a mistake in my Good Faith Estimate, escrow gave me a $3000 credit in closing. This was the amount the bank was supposed to pay to my mortgage broker. The broker didn't get paid. The broker is now asking me to send them a $3000 check, after closing. My point of view: I got my GFE from the broker (for signing). They saw it before closing but didn't notice mistakes. Broker's point of view: they say that this kind of mistakes happen all the time, it's the bank fault and the $3000 doesn't belong to me. I asked someone at RESPA, they said I don't have a legal obligation to pay: I already paid what was in my GFE.

What do people do in this kind of situations? Please give me your advice.

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Scott Godzyk, Agent, Manchester, NH
Wed May 5, 2010
What is legal and what is moral are two different things. You need to consider how this person treated you, help you, assisted you and how they acted when they did find the mistake. They have a claim against the mortgage company if tehy had a contract to get paid 3k form them, the mortgage company could then come back at you. Is it worth it, what is right, only you know in your heart and soul what you believe. I would pay them but make sure it is documneted for tax and legal reasons. good luck with your new home
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Alphadoghigg…, Home Buyer, 33525
Sun May 9, 2010
I am a potential home buyer who has been looking for some time now & without the benefit of a truly hard working realtor. Been through a whole host of them to this day and finally just "settled" for the nicest guy that would return calls promptly. You might be asking what this has to do in relation to your question, trust me its relevant. I do the majority of the work: i.e. researching the properties, going to view the properties, pulling the county info sheet on the properties, etc. So when it comes down to the "deal", am I going to forego paying his traditional fees? Nope. I figure they (realtors) have all been this way, and he does bring a few tidbits to the discussion ever so often that I wasn't aware of, although not much, since I decided to educate myself on this process because of my experience with the vast majority of realtor/brokers being the same way. As tight as my finances are (major health issues), I had rather err on the side of doing something morally right than to wait and see what happens because I didn't. I wouldn't even think TWICE about your situation.
I am not the "zealot" type, couldn't tell you the last time I stepped in a church, but one thing that stuck with me from childhood is Gal 6:7-10 "Do not be deceived: God cannot be mocked. A man reaps what he sows. The one who sows to please his sinful nature, from that nature will reap destruction; the one who sows to please the Spirit will reap eternal life. Let us not be weary in doing good, for the at the proper time we will reap a harvest if we do not give up. Therefore, as we have opportunity, let us do good to all people, especially to those who belong to the family of believers." Whether you believe in the bible or not, karma is karma!
Your guy apparently did the work and you got what you wanted, why on earth would you even comtemplate keeping his fees based merely on a oversight, no matter who's fault it was? If you keep it, I'll say a prayer for you and your new house, that it doesn't fall down on your head just because it as "supposed" to be sturdy. Because as you see from this, what is "supposed to be" (your broker getting his deserved fees) doesn't always happen the way it was intended.
I realize the entire house buying proess has probably been complicated, aggravating, and stressful at times. And that you've probably felt as though you should be getting paid some times just for putting up with all the "junk" and not going off on someone. But trust me this isn't the way to do it.
I wouldn't want to be near you when there was a lighting storm, and frankly (sorry if this is harsh) I wouldn't want to be involved in ANY business or social interaction if a moral question this simple, is actually a real question.
I have NO horse in this race. I don't know any mortgage borkers personally. I don't have any deep abiding friendships with realtors, and aren't really that fond of any of them involved in this process because I find they are all looking for money for one reason or another, and some minor way to tack on just one more fee. I'm disgusted and frustrated with the entire process, but those feelings won't translate into my compromising my morals. For any amount of money.
Just a two cents worth response, that probably isn't worth the two cents. But I honestly couldn't believe it would be a question. Good luck, you might need it depending on your decision.
1 vote
Ruth and Per…, Agent, Los Gatos, CA
Thu May 27, 2010
Hello Need Help:

If the Mortgage Broker helped you get a loan in these tough loan qualification times do think about it.
The loan broker can always get you a better lower loan rate in a few months. After all you did get your home
with his help.

Life has strange ways of paying one back, if you do what is morally right.

Right, now sure you must be feeling slightly broke, and thinking someones $3k will help.
But surely you filled out Loan Forms, where there were fees agreed to and remember your Soc. Sec.
number is with the Loan Broker.

The Broker has the right to collect from you and hold you to the Loan contract if he chooses.

Goodluck with your decision.
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Beth Roach, Agent, San Diego, CA
Thu May 27, 2010
Think about if it were the other way around. Suppose you signed off on your GFE, then later upon closer review you realized that $3000 was tacked on to the closing costs that you were charged. When you realized the mistake I bet you would contact your loan broker and ask them to help you fix the problem and get your $3000 back.

Luckily in your real life situation you have the opportunity to make it right for the person who helped you get your loan. You will be able to sleep better knowing you did the right thing!
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Tean Wong, Agent, Boston, MA
Wed May 5, 2010
Legally you don't have to, morally? you may ask yourself.
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Jose Hernand…, Agent, Chicago, IL
Wed May 5, 2010
If you had found this cash on the side of the street then it's a different what's right!
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Wed May 5, 2010
Hello Need Help:

While, as you said, RESPA rules make you believe you have no obligation to pay the broker directly, you might certainly have to pay back the lender when and if the broker makes the situation known to the bank--rather than have this show up as an uncomfortable "debit" against your account, you might wish to consider correcting this matter.

Personally, whenever it's possible to do so, I believe it is best to do no harm to others--which means, of course, that when a mistake is found, if it can be simply corrected, then it should be corrected. As a result, when a similar situation occurred in refinancing my property, and I found myself with a $1500 credit that should have gone to the broker, after I assured myself that it was the mortgage broker's money, I immediately sent it to him. My rationale is that the broker did me a favor in finding me a great loan for a good interest rate and is saving me thousands every year for the next 30 years--certainly he should be paid for his good job--and so, he was. I would expect nothing less for my own efforts, and I'm sure you would agree that you would expect the same treatment.

Good luck!

Grace Morioka, Realtor, SRES
Area Pro Realty
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed May 5, 2010
Home Buyer,
How would you want the broker to respond if they received $3000 of what was supposed to be your money, but you missed it when you signed? It's a do unto others situation from my perspective. If keeping that money that you admit was intended to go to your lender is something you can live with, the money is not your biggest problem.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Tue May 4, 2010
It's almost like getting a deposit in your checking account that you found out was deposited there by mistake. Your bank tells you it's a mistake. You know it's a mistake.

Do you still keep it knowing it wasn't intended for you?
0 votes
Emelia Sanch…, , Ontario, CA
Tue May 4, 2010
Need Help,

Legal, Moral, Ethical Obligation call it what you want. Mistakes do happen computers are only as good as the information we input, you claim it was inputted onto the credit side instead of the debit side. You retained a service, you received a service. Without actually reading your GFE the broker may need to pay for the processing, underwriting, tax service fees, notary fees, wire transfer fees, the lender and any other misc fees.

Just do what you think is right.
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