We’re hearing sporadic cases of banks giving their turn-down business to subprime lenders–without the client knowing that another lender is working on their deal.
The banks may get “finders fees” for sending declined customers to partner lenders, but there is a downside for the homeowner. The rates, terms, and choices offered by the bank’s “partner” lenders will often be worse than if the client instead consulted a mortgage planner after getting turned down.
Keep this in mind if you’re declined by a bank and get another offer from an affiliated lender.
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