Commitment of an Upfront
Published with permission from The Mortgage Professor, Jack Guttentag
1. The broker will be the customer's representative or agent, and will endeavor to act in the best interests of the customer.
2. The broker will establish a price for services upfront, in writing, based on information provided by the customer.
3. Any payments the broker receives from third parties involved in the transaction will be credited to the customer, unless such payments are included in the broker's fee.
4. The broker will use his best efforts to determine the loan type, features, and lender services that best meet the customer's needs, and to find the best wholesale price for that loan.
5. The wholesale prices from which the broker's selection is made will be disclosed at the customer's request.
When directed by the customer, the broker will lock the terms
(rate, points, and other major features) of the loan, and will provide a
copy of the written confirmation of the rate lock as soon as it has been
received from the lender.
7. If a customer elects to float the rate/points, the broker will provide the customer the best wholesale float price available to that customer on the day the loan is finally locked.
8. The broker will maintain a web site on which its commitment to its customers is prominently displayed, along with any other information the broker wishes to convey.