Can I collect a brokers fee from a borrower on a loan that doesnt close?
Section 12(b)(5) of the Act prohibits licensees from collecting a broker fee upfront before a conditional commitment is obtained from a lender for a borrower. Moreover, the Department believes it is not a prudent business practice for brokers to collect a fee thereafter when the borrower chooses not to close on the loan because it is a foreseeable risk of doing business.
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- Can I collect a brokers fee from a borrower on a loan that doesnt close?
