Top Ten Broker Violations

Do you know the top ten violations uncovered by the Division of Financial Regulations when conducting audits of licensed mortgage brokers?

Recently, the Executive Committee of the Maryland Association of Mortgage Brokers (MAMB) posed this question to the Commissioner. Here’s what we learned:

The Ten Most Common Broker Violations Are:

1.) No Broker Agreement issued.

2.) Broker Agreement not issued within 10 business days.

3.) Broker Fee is not specified, states "up to", "will not exceed" or a range of points, and/or was left blank as to fees. Brokers must state an exact fee.

4.) Overcharge on Broker Fees collected.

5.) Collected an application fee but also charged for credit and appraisal separately.

6.) Overcharge on other fees, not included in Broker Agreement or third party fees overcharged.

7.) Broker fee charged on full amount of loan in a re-finance within 24 months.

8.) Broker Agreement is not signed by broker and/or borrower, and/or is not dated.

9.) More than one Broker Agreement issued.

10.) Maryland Financing Agreement was not issued or was not issued within 10 business days.

*MAMB recommends that every mortgage broker review his or her office’s procedures to make sure that they are in compliance with all aspects of the mortgage process. Fines for violations of the above can be significant.

MAMB would like to thank it's Gold Partners in Education for their continued support:

720 Light St., Baltimore, MD 21230
TEL: (410) 752-6262 | FAX: (410) 752-8295
EMAIL: MAMB@assnhqtrs.com