Not likely - Posted by John Behle
Posted by John Behle on November 11, 1998 at 19:01:34:
If the loan officer is telling you to jump through certain deceptive hoops to get a loan through, that DOES NOT mean the bank, mortgage company or lender approves. I’ve seen cases where the loan officer goes free and the borrowers go to jail. I’m not being fear based here, only pointing out that the loan officer DOES NOT speak for the lender.
What prevails is the documents you sign. If they disagree with what the loan officer is telling you, walk away. Too often investors think they are safe doing what the loan officer suggests.
Loan officers for mortgage companies are usually paid on commission. The mortgage company usually sells the loan and sometimes have little regard for the lender that is making the loan. When it comes down to it, relying on the verbal representations or directions of the loan officer may be of little help if you have signed documents to the contrary. I have also seen where some sneaky loan officers have gotten borrowers to sign documents without explaining them and even forging the borrower’s signature.
Just a word of caution. I just don’t believe you have to mis-represent things to succeed in this industry. I’m not saying that’s what’s happening in your case, I couldn’t tell that without more details - but you should be aware of the dynamics of the situation in case something shady is in the works. I’ve seen as many loan officers practice loan fraud as borrowers. In fact most of the time it is the loan officer encouraging it.