Newsflash: Is borrower on the hook for mortgage broker’s fee?

Borrower signed an exclusive agreement with mortgage broker. Borrower agreed to 1% fee to procure term sheet. Borrower ultimately obtained a mortgage from a bank. Is the borrower in breach? Does the borrower owe the 1% fee?Here is what i think is the relevant provision:SERVICE – The Agent will underwrite, package, and submit the Client’s loan to lenders, with the intent of procuring a term sheet on behalf of the Client. The Client has the right and is encouraged to close the deal directly with the lender introduced by the Agent. In consideration of services rendered, the Client agrees to pay the Agent in the amount of 2% of the gross loan amount (the “Fee”) to the Agent upon the Client’s execution of this Agreement and paid via ACH or wire pursuant to forms executed by the Client.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s