I just talked to a Realtor who shared a story with me about an unethical person doing business in our area. The Realtor provided a service to his client and identified a property that the client wanted to buy. He wrote up the offer and wanted to get the pre-approval letter from the client’s mortgage broker to submit with the offer (to stengthen the offer which is a good move). He called the mortgage broker but he didn’t get a return call. He tried the next day and still no response which he thought was strange. He then talked to his client and found out that the Mortgage Broker (who also has a real estate license) told his client that he could get a better interest rate if he wrote the offer for him. This is a lie since the only thing the Mortgage Broker can do is charge less on the closing costs, which he plans to make up by making the commission on the property sale.
I don’t know any other way to describe this other than theft. This mortgage broker just has a real estate license and is not a REALTOR so they aren’t bound by the REALTOR Code of Ethics.
It’s people like this that give the industry a bad name.