Loan officer surrendering commission?

[mariatherese]

I am not a loan officer, I am actually a first time home buyer with a question about a loan officer.

Basically, my mortgage loan officer seems like a really cool guy, and he claims he is offering around $900+ towards our closing costs, out of his own commission, because of an error on his part that he wanted to correct. I am wondering if it is really true, if that sort of thing actually happens, or is he BSing me.

Here's the story:

He at first told us we could get an FHA/rural development loan, and with the seller contributing the closing costs, we wouldnt have to walk in with any money for closing. Then, 2 days before we were scheduled to close, he calls me to tell me th eloan didnt go through because we made $2000 over the annual income limit for a rural development loan. So, we had to now go striclty FHA which would mean higher closing costs (in the amount of $2000). Basically, it was his mistake, and he felt, in his words, that it wasnt fair of him to tell us the costs would be nothing and then spring $2000 on us all of a sudden. So, he claims that he is fronting over $900 towards our closing costs out of his commission.

Now, we are 3 weeks behind on closing now because of this and other weird mishaps (seller problems with the title). we are set to now close this friday and my loan officer told me today that I would actually walk out of closing with a $43 check in my name. He mentioned this was in part due to the fact that he is surrendering some of his commission.

Now, he seems like a really cool, honest guy. I was really impressed that he would do that. And I feel guilty walking out with a check that was really his money. So, I thought I would buy him a gift with it to show my gratitude, maybe a gift certificate to a nice restaurant.

But, my family keeps telling me I'm a pushover idiot and that he probably is full of BS and gets reimbursed or something. That they will do anything to sell homes right now. These are the words of my aunt (she's being purposely funny and over-the-top here):

[I]NO, Maria, don't let him get you, he says that to everyone!

OUT OF HIS POCKET means he went to his bank account, withdrew some money, and gave it to you as a gift.

TAKE OUT OF MY COMMISSION means "I can't really rape people for as much as I used to because houses aren't selling all that well anymore".

Buy him a stick of gum and say "Happy Capitalism to you, too, Mr. Real Estate guy. I am giving you money to do my paperwork. I could have done it myself, but I am paying you to do it, so you should be happy you don't have to get a real job." LOL I'm a nice lady, ain't I?[/I]

Anyways, if you have read on this far, thanks for paying attention to my silly little story.

So, what do you think? Is he really a nice guy? Should I get him a gift? Or a card at least? What is customary? Is it customary for loan officers to surrender their commission?

Thanks for all your input, it is much appreciated.

[Troy]

I'd ask your family how many FHA loans they've done over their lifetime.

I mean, not to get too bent out of shape over it, but I've had many a loan turn bad because of a relative who doesn't know anything about mortgages but read an article in the newspaper that day, and is suddenly the resident expert.

I'll admit, I don't do a lot of FHA loans because I'm in CA and loans here typically exceed FHA guidelines. However, I do believe your loan officer is being up front with you. And, while he's not physically pulling money from his bank account, he is probably taking less of a commission to cover his oversight.

Look at it this way... He could've stuck you with the full $2,000 closing cost bill & you still would've paid it, right? Very few people would let 2k get in the way of homeownership when they are this close to ending. He didn't have to do anything, but he elected to be ethical. Congrats to your loan officer helping to raise the standard out there. Also, kudos to him admitting that it was his mistake when there are numerous people he could've blamed that you'd probably never talk to.

If he's a cool guy and you like him, refer him a client! Skip the cookies or card and send another loan his way... you'll be his favorite person.

I hope that helps!

Troy

[mariatherese]

thanks... that helps alot!

thats exactly what i was trying to tell my family... they dont know anything about it.

i think i'll still get him a card. just to say thanks and let him know i'll refer everyone i know to him.

[AnnAnderson1015]

This loan officer is stupid. He does not understand the value of repeated business and referrals.

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