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mortgage language question

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  • Avatar pleaseadvise 
    Participant
    Status: Physician
    Posts: 1
    Joined: 03/04/2019
    Earnest refinancing bonus

    I have a house under contract and am in the process of securing a mortgage. In the “Borrower Certification” document with the lender, the following paragraph is written… “I authorize you to provide to Mortgage Loan Originator, and to any investor to whom Mortgage Loan Originator may sell my mortgage, any and all information and documentation that they request. Such information includes, but is not limited to, employment history and income; bank, money market, and similar account balances; credit history; and copies of income tax return.”

    I have concerns about what will happen with my personal financial information and have become spooked by the phrasing suggesting that I allow this information to be sold. Thus far I have not signed the agreement but realize I may be interpreting this incorrectly. My prospective mortgage officer assures me they won’t do anything with the information. Is this standard language, or is this concerning to anyone else?

    Thank you for any assistance!

    #195748 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3032
    Joined: 09/18/2018

    This is normal. Conventional loans are rarely held 100% by the originating lender to completion. The loan file and documentation supports the loan. A buyer would require it. Your data isn’t sold to others.

    #195822 Reply
    Liked by Lordosis
    Faithful Steward Faithful Steward 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 511
    Joined: 06/12/2017

    Rey normal language. Nothing to be concerned with. Plus, they probably won’t make the loan without it.

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors
    https://ProsperousPhysician.com | (717) 496-0900

    #195842 Reply
    Liked by Tim
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2817
    Joined: 01/03/2017

    They just want the option to sell your mortgage. I’d be surprised if there’s a lender out there that doesn’t have similar language in their contracts.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #195843 Reply
    Liked by Lordosis, Tim

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