Is that Mortgage Brocker Fraudulent?
If a mortgage broker sold me a mortgage, which was agreed to verbally and in
writing. Then, two days before closing told me they could not proceed with
the mortgage they committed to, but offered me another mortgage that does
not meet my needs and was not what I agreed to, is that fraudulent?
Those actions probably constitute breach of contract. That conclusion
would depend on what the contract says.
Those actions might be fraud, but intent would need to be proven.
Fraud is an intentional misstatement which is intended to be relied on
by another person and which is relied on by the other person to the
detriment of that person. If the statements were made without any
intent to back out, that's not fraud. If the broker intended from the
beginning to back out and offer a substitute loan, that would be
fraud. It's almost always true that a breach of contract case cannot
be proven to be a fraud case.