Before you Make the Loan

A Simple Way to Avoid Most Mortgage Fraud Cases

The Consumer Law Committee of The Bar Association of Metropolitan St. Louis has come up with a form that it distributes to consumers who are contemplating taking out a mortgage loan. The form is called "Before You Make the Loan" Checklist, and it is available online here.

You know how mortgage brokers just present unwitting borrowers with reams of documents to sign? The concept of this checklist is to have the consumers ask the mortgage brokers a series of questions, and have the BROKER sign the form with the answers, kind of "turn about is fair play". I can imagine a broker being aghast that a lowly consumer would actually make a broker sign off on the representations made to close the loan.

I suggest that you bookmark this form, and if you have a client come to you with questions about a mortgage loan, download this form and give it to the borrowers.