Broker says, "Illegal"??

[Skylyn]

What is the name of your state? PA

I'm under contract to purchase my first house. Closing is set for the end of this month. According to our contract, we were to provide a loan commitment letter to the seller by Dec 20, which our mortgage broker provided (on time).

At the time, our broker said that he was going to continue to shop around for me because he felt that he could get me a better deal. He called last week with a much better mortgage (it is very similar to the first, just with better rates/terms) and we took care of all of the paper work, etc. He also contacted my Realtor about this.

Well, yesterday, my Realtor called and said that what the broker was doing (i.e., shopping around for me and getting a different mortgage than what the original commitment was for) was "highly Illegal". Although she (the Realtor) didn't say we couldn't use this mortgage or that there would be any problems, I'm still a little worried. Is what the broker did illegal? I've read and reread the contract (it seems pretty standard) and I don't think we're in breach, and I can't find any law or rules that would make this illegal, but...

So what's the real deal? Thanks in advance!!

 

[HomeGuru]

What is the name of your state? PA

I'm under contract to purchase my first house. Closing is set for the end of this month. According to our contract, we were to provide a loan commitment letter to the seller by Dec 20, which our mortgage broker provided (on time).

At the time, our broker said that he was going to continue to shop around for me because he felt that he could get me a better deal. He called last week with a much better mortgage (it is very similar to the first, just with better rates/terms) and we took care of all of the paper work, etc. He also contacted my Realtor about this.

Well, yesterday, my Realtor called and said that what the broker was doing (i.e., shopping around for me and getting a different mortgage than what the original commitment was for) was "highly Illegal". Although she (the Realtor) didn't say we couldn't use this mortgage or that there would be any problems, I'm still a little worried. Is what the broker did illegal? I've read and reread the contract (it seems pretty standard) and I don't think we're in breach, and I can't find any law or rules that would make this illegal, but...

So what's the real deal? Thanks in advance!!

**A: there is nothing illegal about the mortgage broker's actions although depending on the wording of the financing contingency in your contract, there may be a problem.