My mortgage broker wants me to pay them outside of escrow?

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my mortgage broker is forcing me to pay them outside of escrow their origination fee because if I pay in escrow the bank I am getting my loan from will cut their commission can they do this?They said I can still get the write of on my taxes if I send them a 1099 but what the hell is in it for me? What if I dont oblige can they sabatoge my loan even though its been approved?

6 Comments
  1. Reply
    BNICKS
    May 16, 2011 at 4:31 am

    O MY GOD!…. SHADY @SS Brokers … I’m not laughing at you … its just I’m a mortgage banker and warn my clients about brokers (just like this one everyday). RUN for the hills … that is crazy … to claim them on your taxes you have to show the final settlement statement (from the bank/lender) and that will say $ 0 if you do that.

    You should expose those people … call the banking commission or someone … maybe the lender/bank.

    And no the can not “sabotage” a loan … you don’t want there loan … call a mortgage lender and get a loan directly from them …. going through a broker is only a middle man who finds you a bank … more fee’s (they have to get paid too)

    please … walk away.

  2. Reply
    Lisa S
    May 16, 2011 at 5:15 am

    EVERYTHING being paid out at closing must go on the HUD-1, closing statement. If not and you are found out, guess who gets in trouble.

  3. Reply
    unschoolymomma
    May 16, 2011 at 6:10 am

    Do not do business with anyone that says they want you to pay them outside escrow-etc. Shady!! Run away and find a legit company to deal with. You will get in trouble in the end of you do. I wouldn’t want to risk it.

  4. Reply
    kemperk
    May 16, 2011 at 6:25 am

    inform your REAL estate broker and the corporate commission
    or banking super; the mort broker is seeking to break the law
    and a RESPA rule.

    ignore him .

  5. Reply
    Glenn S
    May 16, 2011 at 6:31 am

    Tell them sure….you will be happy to pay them a minute after the property records. Then tell them to piss up a rope.

  6. Reply
    Beeny
    May 16, 2011 at 7:29 am

    Ummmm. that’s against federal law. Walk away NOW. State laws differ from from state to state but federal laws DON”T……. Report this mortgage broker to the state office that handles financial insitutions so that they can do an exam and possible shut them down…….

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