Id like to submit a complaint regarding some deceptive practices with a mortgage broker we used to acquire a construction loan.
In the fall of we purchased a lot to build a home in Sandy, upon closing on this home in January of we learned, from the escrow agent at the title company, that the broker had slipped a first right of refusal form into the documents signed at his office on two occasions. The penalty for not using him for our long term financing, as we learned at closing, was 1% of the construction loan, or in excess of $4,900, still being held by the bank. The forms we signed at the brokers office were not explained to us either time. As far as we know, a receptionist handed us the papers the first time we signed them, the second time we signed, the papers were sitting on the front desk. Nobody came to greet us or explain the papers we were signing either time, we simply signed where there were arrows to sign. Had anybody explained the intent of this form, we would not have signed it. Our intent was to use a close friend and neighbor, who processed our long term loan with no fees. Since he offered a no fee loan, we didnt explore any other option.
We feel that this was an underhanded, unfair and deceptive practice and felt that we should not be obligated to pay a fee for work not done and foster such practices. We later learned from the bank that this is a common practice for this broker and all his customers had disputed their similar situations.
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