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Checking Out Lenders
 BUYER'S TIP:
If a real estate agent recommends a particular mortgage company or lender, always ask the agent if the real estate office owns the mortgage company or if the agent is getting compensated in some manner for the referral. You would also want to be assured that the lender will not release confidential financial data to the listing agent or seller. One of the advantages of using a Buyer's Agent to buy your home is that the agent must keep your financial information strictly confidential and, in most of the offices that practice Buyer Agency exclusively, their duties include helping buyers arrange for best rates and good service from mortgage lenders.
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The Commonwealth of Massachusetts requires people who work as mortgage brokers assisting others to obtain mortgage financing on residential properties to have a license from the commissioner of banks. Regulations provide that the commissioner can seek information demonstrating the person's financial responsibility, can review copies of financial statements and information concerning the "character, reputation, honesty or fitness to engaging in the business".  The Massachusetts Division of Banks (the Division) is an agency within the Office of Consumer Affairs and has jurisdiction over Massachusetts state-chartered financial institutions and out-of-state financial institutions that have been granted authority to do business in the Commonwealth. They also license and examine mortgage brokers and lenders. Complaints about mortgage lenders are reported to the Consumer Affairs Division of the Massachusetts Division of Banks (617-727-3120, ext. 349).
When checking out lenders' rates (the Division of Banks provides rates on a weekly basis on the SHOPPERS CREDIT GUIDE on the Internet), don't overlook the importance of good customer service. A great rate loses value when a lender misses important deadlines which result in more out of pocket money for home buyers. Home buyers working with a Buyer's Agent have an added advantage in that their agent is obligated to help them obtain the best rates and servicing. |
