The Broker we have been working with met with us and told us that he could lock in the loan and an agreed % and that we had to use his company as the loaner. Which was in the contract. But now he said that he can not be the Broker handling the paperwork and the person who handles and signs the loan paperwork. He is insisting on bringing in a woman he knows to sign the papers with us. Is this true? I think something sounds fishy to me! Please advice ask quickly as possible, we are to meet with him tonight to sign the paper work to move forward with the purchase.

Hard to respond to your individual situation without knowing a lot more facts but here are some general facts that may help.

Here's what a really smart, real estate law firm has to say about the practice you're describing.

As a general rule you have the right to shop around and get your mortgage loan anywhere you choose and it's usually illegal to "make" you use a particular firm with any federally regulated loan (and most loans are federally regulated in some way).

RESPA, which stands for "The Real Estate Settlement and Procedures Act" regulates mortgages, some real estate, and most all real estate closing firms.

Same thing goes for title companies (they're the ones that do the paperwork at real estate closings)

You might try asking your broker if he's certain all of his actions are RESPA compliant.

Be interesting if you would come back and tell us his answer.

Best of luck with your home purchase.

Well my post may be moot because you may have already signed your loan papers.

It's hard to tell from the original post if the broker is a real estate sales broker also doing loans or only a loan broker. In any event, my "read" of the original post is that the broker is indicating he could not "notarize" the loan documents because he is acting as the loan officer. Which is true.

A bigger question is if the broker tried to compel you from the outset to use a particular lender or loan product or only use him as the loan officer. He can't do that. It's your choice. But if what happened is that he offered you a loan product and you accepted it and he got the interest rate locked in for you and then told you that if you want to proceed with that locked rate and loan product, then you need to proceed with that lender, well that is a different scenario than flat out telling you upfront that you must use a particular lender. It's hard to tell based on your limited description of what transpired.

I hope you were happy with the loan terms.

Generally, you have a 3 day recision period for residential property.

Make sure all your #s in the GFE and HUD-1 all match up.

The three day right of recission applies only to refi's and not on purchases.

Absolutely and it only applies to primary residences to boot.

There is no 3 day right of recission on buying a residential property, new or resale.

That only applies to equity loans and refinances.