CNC Mortgage Blog

March 14, 2009

Dear XX,

I must apologize for being nasty to you when you called me this afternoon regarding the loan for our customer XXX. I understand that you as a realtor and she as the customer want to close on the property as soon as possible, more so considering that she and her family are living in cramped quarters in her brother in law’s rented home.

As we have all learned, purchasing foreclosed properties is much more complicated that buying from direct owners.

As the mortgage broker I have a responsibility to get a good mortgage loan for your customer but also to see that she holds title to the property in a way that allows her to sell the home the day after she buys it if that were her desire. She must hold clear title the day she buys the property. I must also be comfortable that the bank I am asking to provide a loan also holds an appropriate lien to the property.

It is the buyer’s choice to pick the title company they want to use. In this case she was coerced by the seller and the listing agent to use the seller’s title company, I believe violating RESPA rules.

This particular borrower was denied mortgage insurance coverage by the company that provides that insurance for the MHFA, Minnesota Housing Finance Agency. I am not an underwriter, however I believe she was a perfect candidate for one of those first time homebuyer loans. MHFA and the MI company did not get to the point of studying the title work for this property.

I then moved the loan to PF Bank who approved a loan for XX and proceeded to study the title work. PF Bank is a very strict bank and rigorously screens their borrowers. They approved the borrower but said they would not accept to close with a title company in Kentucky that did not have physical presence in Minnesota. I informed you and the listing agent and proceeded to request the title work from TONE title with which I have done business for more than eight years. PTITLE, the seller’s title company based in Kentucky, could not or was not willing to provide the necessary documents to prove the seller’s legal ownership of the property or the legal capacity to sell this home.

Please understand that it is important for our customer ( yours and mine) hold clear title to the property.

I hope we can close on this property next week.

I appreciate your referrals and look forward to serving your customers.

Your truly,