Burned by Broker

Re: “There Are Good and Bad Mortgage Brokers” by Robert J. Bruss (Jan. 6).

In March, 1987, we sold our home the same day we listed it. We also found another home that same week. At that time the interest rate was down to 8 7/8%. We had a 45-day escrow just like the people who bought our home.

The only difference was we went with a mortgage broker (suggested by our real estate agent) and they went with a savings and loan. We had a large down payment and already qualified for the loan (we thought). The people who bought our home closed escrow 45 days later at our interest rate of 9 1/2%.

Now let me tell you about our experience with our mortgage broker loan officer. He was arrogant and unprofessional about the way he handled our paper work. I forget the reasons why the interest rates started to go up but they did, and our 45-day escrow turned into 60 days.

At the end of escrow closing we had an interest rate of 10.625%. This man deliberately sat on our paper work until the interest rate went as high as it was to go at that time. He thought it was funny when people fell out of escrow because they no longer qualified for a loan, saying that was the way the world goes.

Being a first-time buyer and not knowing what to do, we had to take the loan with this mortgage broker. (This has been eating at me since).

I have learned one thing from this lesson and that is to shop for your own loan at all savings and loans and banks before even thinking about a mortgage broker. Use them as a last resource.

I want to thank Michael B. Gerber (president of the Los Angeles County Assn. of Mortgage Brokers) for the Consumer Abuse Hot Line number (Letters, Feb. 24). I hope I never have to use it.

KATHY TAYLOR

La Verne