She noted that a recent example of this occurred when the bank statements were found to be fraudulent. Fraud has been a significant issue, and bank statements are one area where it frequently happens. She said brokers should examine them closely to try to catch fraud before it reaches the lender.
“As a recent example, we had a loan come in,” she said. “It was up to the chief credit officer, and the originator forwarded the bank statements. He noticed that the bank statements were fraudulent. There was a broker involved. We faxed the client and said, ‘By the way, we don’t accept statements from the broker. Please send them directly.’ The bank statements were exactly the same from the borrower.
“Brokers have to be really diligent, because it’s their reputation on the line. We all want to do business with them, and we want good quality brokers.”
Shopping around
Every mortgage broker is trying to find the best deal for their client. Lenders understand that to a point. Kaufman said if their offers are constantly being used to shop around for better rates and terms, odds are that the broker is going to end up on their bad side.
“The other tip that’s very important to a broker is that their job is to try to find the best deal for their client,” she said. “But if they’re going to send me 10 deals, and they’re going to shop, and then I don’t see a loan out of those 10 deals. If they’re going to use my letter of intent to shop to 10 other people, we’re not going to want to work with that broker.”
