On April 4th, the New York Times featured an article focusing on the difficulties of working with a mortgage broker. Since many family lawyers today have clients whose houses are “upside down” (have greater debt than appraised value), I want to provide a link to the Times article for you to give your clients.
According to Ron Lieber writing for the Times, some of the biggest companies in real estate have recently decided to stop working with brokers. He says that "Chase won’t lend to brokers’ clients anymore" and that “the PMI Group, one of the biggest companies in the mortgage insurance business, flat out refuses to underwrite any policies on loans that started with a broker.”
Lieber makes some recommendations about how to go about looking for an institution to refinance a house or one that will write a mortgage on that bargain-basement priced home that you or your client may wish to buy.
See When to Use a Mortgage Broker in the New York Times here.