[Linda]

...putting some EMD? Can a mortgage broker give down payment legally for the borrower? There's a mort. broker in CA that says she's willing to give 20% down to a borrower who has terrible credit. She has been "working" with borrower since late last year - has found a lender who will give 80% LTV. Borrower has no $$ for down. Mortgage broker already put EMD down for borrower and says she'll go ahead and put 20% down - the borrower will have to make payments on the "2nd" for her down $$ - which she will defer for almost a year. The borrower does not want to go through with this as mort. payment will be 'bout $1,300.00 on $175,000.00 loan for first 10 months @ 10.97% interest. Then borrower will have to start paying for "2nd" @ $350.00 in 10 months. Borrower already told mort. broker - "no, not comfortable:. Mort. Brker has told him - "we're going thru with this - I've invested a lot of time in you since Oct./2007 to find you a loan. Borr has shown me his emails. WHAT CAN BE DONE STOP THIS?
The borrower told me that he's to sign "loan docs" and do notary tomorrow (3/29) @ his real estate agent's office. He showed me paperwork which he has signed when he sat down with his agent to see if seller (bank owned) would accept his offer and other paperwork which shows parcel information on home property.
In one of the borrower's emails - the mort. broker says that he can do re-fi on 1st mort. - but to make sure he misses no payments. She also says that 10 months of no late payments on any of his credit cards, etc. should be enough time to correct his credit and get a good rate.