Originators have been placed on notice by the Consumer Financial Protection Bureau that they are responsible for the actions of their vendors. But originators should be keeping a tight leash on their vendors as a matter of their own business policies.
This point has been driven home to me because of a broker washer/dryer.
My washer/dryer had been damaged beyond repair last October when water from Hurricane Sandy entered my house. Once repairs were completed to my laundry room, my wife and I purchased a new washer/dryer.
A few weeks ago, the dryer broke and since it was still under warranty, we called the authorized repair company the appliance maker had given us. The company did an OK job repairing the appliance although they did arrive outside their original time window.
Within a week, a part on the washer failed and we called the same repair company. Because of the holidays, this company told us we need to do the work on a Friday unless we wanted to wait until 2014.
Not only did this vendor not show up during the scheduled window, they did not call us to say they were not able to service us at all. Our calls to them got the response that they were checking into it but they never called us back before the company closed shop for the holidays.
We then called the appliance maker, who did give us a satisfactory response as well as another repair company to deal with. However, our experience with the first repair shop has my wife saying she will never buy another model from this brand again.
The lesson for originators: your vendors are acting in your name. If they donít treat your clients properly, the next time your client needs a new loan, your client will find a new originator.