Florida Mortgage Brokerage Fee Agreement by Megadox

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									     MORTGAGE BROKER ENGAGEMENT AGREEMENTMORTGAGE
                BROKERAGE FEE AGREEMENT
THIS AGREEMENT made effective as of the _____ day of ______________, _______.

BETWEEN:

                                         [NAME OF BROKER]
                                           [address of broker]
                                      Florida License #___________
                                             (“BROKER”)

                                                - and -

                                   [NAME OF CLIENTBORROWER]
                                     [address of clientBorrower]
                                      (“CLIENTBORROWER”)
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WHEREAS CLIENTBORROWER wishes to retain BROKER’s services to obtain a mortgage loan, and
BROKER wishes to provide those services to CLIENTBORROWER, on the terms and conditions set forth
in this Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants
and agreements contained in this Agreement, the parties hereby agree as follows:the parties hereby agree
as follows:

1.      Details of Mortgage Loan

Loan to be secured by real property      Street address of property: ____________________
located at:                              City: ________________ State: _______

                                         Legal description of property:




Principal amount of loan:                Minimum of $_____________________
                                         Maximum of $_____________________
Interest rate:
Repayment terms:


Other terms:

                                         [If none, state “None”.]
Personal guarantees to be given by:

                                         [If none, state “None”.]
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2.      Exclusive Right to Represent                                                                          Formatted: Bullets and Numbering

BORROWER hereby retains BROKER as its exclusive agent for the purpose of procuring a mortgage loan            Formatted: Font color: Auto
approval from a bona fide lender for the purchase or refinance of the property set out in Section 1 hereof.
BORROWER hereby represents and agrees that it has not and will not apply to other lenders or through
other brokers for a mortgage loan with respect to this transaction during the term of this Agreement. If
application has already been made, BORROWER agrees to withdraw such application immediately upon
written credit approval by BROKER, and shall provide BROKER with evidence that such application has
been withdrawn.

2.      Term of Agreement                                                                                     Formatted: Bullets and Numbering

3.

The term of this Agreement shall be for a period of thirty (30) days from the date of execution hereofThis
Agreement shall become effective as of __________ [insert date] and shall continue in effect until the
transaction closes, anticipated to be __________ [insert date], unless otherwise cancelled in accordance
with its terms.. During the term, BROKER shall act as the exclusive broker for CLIENT in obtaining a
mortgage loan in accordance with the details set out in Section 1.

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3.4.    Scope of Services to be Performed                                                                     Formatted: Bullets and Numbering

        BROKER will provide BORROWER with the following services:
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(a)     discuss various loan products available to BORROWER, and counsel BORROWER as to the
        amount(s) and type(s) of loans BORROWER qualifies for;

(b)     identify any problems that may impair BORROWER’s eligibility for the mortgage loan;

(c)     use all of its knowledge, experience and expertise to assist BORROWER in selecting the type of
        financing most suitable to BORROWER’s financial circumstances;

(d)     assist BORROWER in completing the loan application requirements;

(e)     order credit reports, appraisals and such other information as is customarily required to qualify
        BORROWER for the desired loan;

(f)     package and submit the loan application to one or more lenders available to BROKER;

(g)     coordinate the acceptance of any loan approval or commitment by a lender;
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(h)     serve as liaison between BORROWER and lender for subsequent correspondence and
        communication.
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(a)     CLIENT hereby retains BROKER to submit a mortgage loan application to participating lenders           10 pt, Tab stops: 0.5", List tab + Not at 1.25"
        with whom BROKER contracts from time to time, in accordance with the terms of this Agreement
        and the Mortgage Broker Fee Disclosure.
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4.Mortgage Brokerage Fee                                                                                      Formatted: Bullets and Numbering

5.      Broker Fee(s)

BORROWER agrees to pay a mortgage broker fee to BROKER in the amount of $____________. In
addition to the mortgage broker fee, BROKER may also receive compensation from the funding lender,
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ranging from ____% to ____% of the loan amount based on the interest rate and loan terms selected and
accepted by BORROWER for obtaining the loan commitment. The dollar amount expressed herein
represents the total of all mortgage broker and/or loan origination fee points, processing fee, non-
refundable application fee or any other fee being charged directly by Licensee, but does not include the
additional compensation paid by the lender that BROKER may also receive in this loan transaction. The
fees comprising this total dollar amount identified above are also itemized on the Good Faith Estimate of
all closing fees estimated in this transaction and separately being issued to BORROWER by BROKER.
Both of the fees separately disclosed above are deemed to have been earned by BROKER on the date
BROKER secures a written commitment to fund BORROWER’s loan. However, these fees may be
deferred and paid to BROKER, at BROKER’s discretion, at the time the loan is funded. However, if
BROKER obtains a written loan commitment from the funding lender for the terms identified above and
stands ready to close this loan transaction, and BORROWER does not close the loan transaction,
BORROWER may be subject to paying all of the fees, notwithstanding that the loan transaction has not
closed.

6.      Non-Refundable Application FeeBROKER’s mortgage brokerage fee will be solely based on a
        percentage of the mortgage loan obtained. The fee may be paid in the form of a commission
        from the lender. It is agreed that BROKER’s fee is for the purpose of compensating BROKER
        for the value of its services and the costs and expenses incurred on CLIENT’s behalf. The
        value of such services, costs and expenses include, but are not limited to, actual time spent on
        CLIENT’s behalf, actual direct costs and expenses, overhead and administrative costs and
        expenses including insurance coverage for risks associated with BROKER’s services. CLIENT
        agrees that the value of such services, costs and expenses have a relationship to the amount of
        the loan that CLIENT is applying for, and that basing the mortgage brokerage fee on a
        percentage of the loan obtained constitutes a fair and reasonable estimate of the services, costs
        and expenses BROKER will

BORROWER agrees to pay a non-refundable application fee of $________. [delete this sentence if not
applicable]

If the application fee is being charged, it will be credited at closing against fees owed BROKER as a “paid
outside of closing” itemization on the settlement statement and acknowledged by BROKER as received
prior to the closing of the transaction.

7.      Advance Deposits for Third Party Costs                                                                 Formatted: Bullets and Numbering

BORROWER acknowledges that if an advance deposit is required for the appraisal, credit report or other
costs, said deposit is to be retained in BROKER’s Trust Account. BORROWER hereby authorizes
BROKER to pay such fees out of the deposit. If the actual costs of these services are less than the deposit,
the excess will be refunded to BORROWER after close of escrow.

_____   Check here if a deposit is required. The deposit for appraisal and credit report is $_________.

_____ Check here if appraiser is to be paid directly. The estimated actual cost is $_____________.             Formatted: Indent: Left: 0", Hanging: 0.5"
provide and/or incur hereunder.
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5.Obligations of CLIENTBORROWER                                                                                Formatted: Bullets and Numbering

8.

At all times during the term of this Agreement, CLIENTBORROWER agrees to:
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(a)      be truthful with BROKER and keep BROKER informed of any developments with respect to the
         property being used to secure the loan;
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(b)      to pay the commission set out in Section 4broker fee(s) set out in Section 5;
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(c)      keep the property insured for the full replacement value thereof;

(d)      keep the property in good repair and condition;

(e)      inform BROKER immediately of any change in tenants (if the property is rented);
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(f)      execute all loan documents when made available;

(f)(g)   provide all reasonable assistance to BROKER, including providing BROKER with copies of:

         (i)     leases or rental agreements with respect to the property;

         (ii)    financial statements, tax returns, pay stubs, and information of CLIENTBORROWER and
                 any guarantors of the mortgage loan;

         (iii)   any other documentation reasonably required to assist BROKER in providing the
                 services hereunder.
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6.9.     Dis
								
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