The mortgage loan business is being plagued by “chancers”, says Anthony Smook, MD of the Paarl headquartered bond originators, A Mortgage Loan.
Smook said that in recent weeks he has come across three cases of origination consultants invoicing clients for fees for obtaining a bond for them.
“This,” he said, “is illegal and unjustified. Consultants are paid a commission by the bank or financier for every successful bond application – and that is the only remuneration to which they are entitled.”
In one case, said Smook, the originator had invoiced the client for a whopping R69 000 and had listed a number of totally bogus items such as lawyers’ fees, which he would never have been called on to pay.
Smook pointed out, too, that the proposed origination costs must be put into writing upfront – and if this is not done the applicant should demand to know why.