MORTGAGE BANKER'S ASSOCIATION OF ST. LOUIS STANDARDS OF PRACTICE FOR LOAN COMMITMENTS.
Clear and reliable commitments set MBA members apart
Many in our industry are increasingly concerned about the reliability and usefulness of mortgage approvals and conditional approvals in our regional market.
The inconsistent use of terminology such as "pre-approved", "pre-qualified" and "approved" by mortgage firms as well as widely varying standards and processes for issuing a loan commitment can cause confusion. It is important to minimize situations where borrowers, REALTORS™, or other interested parties believe a closed loan will be a certainty only to find too late that the conditions contained in the text of the approval letter were insurmountable.
While we believe that Mortgage Bankers generally have excellent practices in this regard, we also believe that it is our responsibility as the primary lenders of mortgage funds to set a clear example. Therefore, in an effort to eliminate confusion and provide consistent, reliable, and understandable loan commitments, the Mortgage Banker's Association of St. Louis (MBA) has adopted the following Standards of Practice for Loan Commitments to serve as a "best practices" model for the mortgage industry.