TRANSCRIPTION OF VIDEO BLOG:
Hi, everyone. Rowan Smith from City Wide Mortgage Services. My last video went out, and near the end of the video I made some mention about penalties and banks paying other penalties. I want this video to be short, sweet, and very to the point. The question that I’m answering is, “Will a new bank, who’s getting my business transferred into them, pay the penalty of the old bank that I have to absorb on the way out?”
The answer is “No.” There will be times that the new bank will provide incentives. They’ll pay for legal fees, perhaps. They’ll pay for appraisals in some cases. But in my 14 years of doing this business, I have never, ever seen a bank receiving a mortgage pay out another bank’s penalty.
Why? Because you’re legally required to pay that penalty. Both bank A and B, the bank you’re leaving and the bank you’re going to, they both know that. That’s an industry standard that you will be paying that penalty.
If you’re hoping to get out of that penalty, there are no quick answers. You’ll probably be paying it. For City Wide Mortgage Services, I’m Rowan Smith.