When it comes to applying for a mortgage, it can be a complicated process. Depending on the laws in your state, you may not be required to have an attorney present at the time of closing. However, there are many benefits to having a real estate lawyer by your side. They can provide guidance and advice throughout the transaction, such as when buying a condo or mediating a failed real estate deal.
Statistics show that mortgage brokers are responsible for originating the majority of mortgage loans. Credit unions are looking for new ways to increase their loan portfolios and are increasingly turning to brokers or correspondents for help. Mortgage brokers and correspondents have similar roles in the lending process, with the main difference being that brokers don't finance loans and work on behalf of the credit union or borrower, while correspondents finance and close loans in their name and then sell them to a credit union or other lender. Any violation of the provisions of this chapter or of the regulations adopted by the Commission thereto, or any other law or regulation applicable to the conduct of the business of the mortgage lender or mortgage broker, will result in notification sent by certified mail to the headquarters of that lender or broker.
The notification will indicate the reasons for the contemplated action. Real estate brokers can receive compensation for services provided to a mortgage broker or lender in which they have a stake in the property. Books, accounts, and records must be kept separate from any other business in which the mortgage lender or broker participates. Additionally, no person engaged in the business of originating residential mortgage loans can use deception, fraud, false pretense, false promise, or misrepresentation in connection with a mortgage loan transaction.
Agreements or instruments signed by a borrower that contain an acceleration clause allowing the unpaid balance of a mortgage loan to be declared overdue for any reason other than failure to make timely payments of interest and principal, submitting false information in connection with a mortgage loan application, violating any statement or agreement made in the agreement or instrument, or failing to comply with any other obligation assumed in the agreement or instrument are prohibited. The Commission may not revoke or suspend the license of any licensee for any of the reasons set out in § 6.2-1619 until it has notified the mortgage lender or broker 21 days in advance in writing of the reasons for the proposed revocation or suspension and given them an opportunity to present evidence and be heard. It's important to note that while you may not be required by law to have an attorney present at closing, it's still beneficial to hire one. A broker is not a lawyer and cannot fully inform you about all of the consequences and obligations of a legal contract.
Hiring a broker can help streamline your search process and sometimes get you a better deal on a home loan than you could find on your own. For those who are looking to refinance their mortgage loan within 12 months of its origination date, it's important to note that this is only allowed if it benefits the borrower. In conclusion, while you may not be legally required to have an attorney present when applying for a mortgage through a broker, it's still beneficial to do so. An attorney can provide guidance throughout this complicated process and help ensure that all legal requirements are met.