RETAINER, COMPENSATION, and EXCLUSIVE AGENCY AGREEMENT |
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agreement between __________________________________________ , hereinafter referred to as
Borrowers, and Independence Mortgage Company, hereinafter referred to as Broker. Broker is
licensed by the California Department of Real Estate, license #00851186.
Exclusive Right to Represent: Borrowers hereby retain Broker as their
exclusive agent to secure permanent financing in the amount of approximately $____________
to facilitate the purchase or refinance of the property known as
________________________________________________, or a property not yet identified. To secure such financing, Borrowers have submitted a loan
application to Broker. Borrowers have not and will not apply to other lenders or through
other brokers for a mortgage loan on this transaction. Borrowers' Duties: Borrowers agree to supply information and documents
such as tax returns, paycheck stubs, bank statements, and any other documents as are
required to prepare and complete the Loan Application Package, and to execute all loan
documents when made available. Broker's Duties
- Broker will obtain the borrowers’ credit report, an appraisal
on the property, and such other information as is customarily required.
Broker maintains relationships with many lenders but does not distribute
products of all lenders and thus cannot guarantee that the lowest
price or best terms available in the market. However, Broker agrees
to use diligence in securing financing on the best terms possible
and will submit the completed Loan Application Package to the Lender
with the terms for the loan type desired that are most favorable
to the Borrowers. Counseling - Broker will use all of his skill, knowledge, and expertise
to help Borrowers in selecting the type of financing which is most suitable to their
financial circumstances. Agency and Disclosure - Broker will act as Agent for the Borrowers and owes
them such fiduciary allegiance as required of Agents under California law. In addition,
Broker will disclose loan terms to Borrower in accordance with applicable California Law
and as required by the REAL ESTATE SETTLEMENT PROCEDURES ACT. Compensation - Borrower acknowledges that Broker will generally not receive
compensation until the loan funds. However, Borrower hereby acknowledges that such
compensation is in consideration of Broker’s advice, counsel, skill, knowledge,
expertise, contacts and that compensation is deemed to have been earned upon loan
approval, as evidenced by a Loan Commitment from a lender. Source of Compensation - The Lenders we work with will compensate us upon
our instructions. If you choose a rate/fee combination in which the lender receives
Discount Points, you will also be paying us the Loan Origination Fee, as we have agreed.
If you choose to pay a higher rate, such as to get a zero-point loan for example, the
Lender will pay us the Loan Origination Fee. Finally, if you choose another combination,
you will pay part of the Loan Origination Fee and the Lender will pay the other part. No Hidden Compensation
– In return for the exclusive right to represent Borrower,
Broker agrees to limit compensation to ____% of loan amount + $400
processing fee and that any and all compensation by Lender to Broker,
regardless of terminology, shall be disclosed fully and completely.
Broker agrees that no "Hidden Compensation" will be received
from Lender or other source. If Broker receives any Volume Rebates
or other Special Incentive Compensation over and above the agreed
compensation will be rebated to the Borrower.
Advance Deposits for Third-Party Costs - Borrowers acknowledge that if an
Advance Deposit is required for the appraisal, credit report, said deposit is to be
retained in Broker's Trust Account. Borrower hereby authorizes Broker to pay such fees out
of his deposit. If the actual costs of these services are less than deposit, the excess
will be refunded to Borrowers 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 - $_______ estimated actual. Double-Applications - Borrower agrees not to apply for this same financing
with another lender or if application has already been made, to withdraw the application
immediately upon written credit approval by Independence Mortgage Company. Borrower shall
provide to Independence evidence that such application has been withdrawn. Cancellation - If this Agreement is cancelled by Borrowers after their
loan has been approved, Borrowers agree to pay Broker a Cancellation Fee of 1% of the loan
amount. This provision shall not apply in the case of a purchase if the transaction is
cancelled through no fault of the Borrowers. Duration and Voidability - This agreement shall become effective as of
this date, __________. shall continue until the transaction closes, anticipated to be
_____________. If, however, Broker has been unable to obtain loan approval within 30 days of
application, this agreement is voidable at the option of the Borrowers and the
Cancellation Fee is waived. __________________________________ _______________________________ Borrower
for
Independence Mortgage Co _________________________________ __________ Borrower
Date
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