Hi everyone,

This is a long message, but in fine detail and I need advice.

Let me describe the situation, as it ultimately comes down to Lender #1 not wanting to work with me because I won't disclose names/addresses of other lenders.

My home is on the market. I have been doing research and contacting various lenders to determine what type of interest rates I can achieve.

The 1st lender I discussed this with jotted some notes down and we came to an understanding of what he could offer me at that time. He did not provide me with a GFE (Good Faith Estimate) or anything of that nature.

Lenders #2 and #3 are friends of my family, so I do trust their word over Lender #1. Lender #1 works for a nationally recognized Real Estate firm.

Lender #2 works for a nationally recognized bank, but like I said knows my family.
Lender #3 is a Mortgage broker and is a friend of a co-worker.

I verbally discussed with Lender #2 how much I could probably have at closing and what my anticipated monthly payment goal should be. I then asked him to crunch some numbers as I have excellent credit and certainly want to get as low as I can. He was able to quote me a great rate of 5.35% for a 30 year fixed (with some points paid down, LPMI, etc...). This was all laid out in a GFE document.

I contacted lender #3 and forwarded that GFE (with the name / address removed) so Lender #3 could just see numbers only. Lender #3 returned a GFE back to me with comparable numbers and lower closing costs.

I then forwarded off BOTH GFE's to Lender #1 (again, with the name / address information blocked out). In a nutshell, I said "Can you compete / beat either of those offers?".

Here was his response:

In regards to the good faiths you sent, I’ll need a lender’s name and property address on both. Both of those are good offers, but I know we can beat both based on Friday’s pricing.

Because Lenders #2 and Lenders #3 do not know who Lender #1 is, I have made sure I am the only party aware of the names of all 3. So I don't feel comfortable revealing the names/addresses of the other lenders as I don't know what Lender #1's intentions are with that information.

So I responded with this:

The other lenders are aware I am in discussions with multiple businesses and have not requested the names / addresses of other lenders, so I don't feel comfortable giving out those specific details. I was assuming I could get a Good Faith estimate from you, based on the last 2 documents I sent. Is this still possible?

Here is the part that adds confusion to my brain, his response:

I understand your concern in regards to removing the details of the lender from a good faith, however it is an official, legal document. There are rules dealing with RESPA regarding disclosure of certain items on a good faith, and timing of presenting a good faith to a borrower. In fact, there is legislation in congress that will require a lender to not be able to significantly raise their fees prior to closing or the lender will face major fines. With that said, I don’t feel comfortable competing against unnamed lenders.

So with that ALL said (sorry it was long), am I obligated to provide Lender #1 with those details, or is he simply twisting some information?

Thanks alot!

"only piss off your lender if you can afford to do so." -FWFucious

Thanks Mike,

I am completely new to this "game" so I just didn't want to be taken or had. Just that Lenders 2 and 3 didn't seem overly concerned who else I was talking to, just trying to find an answer to the questions I am asking and to find me a good quote on what I am hopefully after.

Thanks.

I have decided to share the names. like the one poster said, "disclose.disclose.disclose"