No Bait-and-Switch Guarantee

LA Mortgage Dude | Official Terms & Conditions

Effective Date: 10/11/2026
Guarantee Amount: $1,000
Applies To: Eligible business-purpose DSCR loans

1. Our Promise

At LA Mortgage Dude, we believe borrowers deserve straightforward, transparent loan pricing.

If we increase your quoted lender-controlled fees or change your covered loan terms without a qualifying reason, we'll honor our original quote or pay you $1,000—even if you don't close with us.

Our No Bait-and-Switch Guarantee protects eligible borrowers from arbitrary repricing, undisclosed lender fees, and changes made solely to increase our compensation.

It does not guarantee loan approval, market interest rates, or terms based on information that has not yet been verified.

2. When the Guarantee Begins

The guarantee begins when you receive a personalized loan quote through our website or directly from an authorized representative, provided the quote can be identified and verified.

Your original quote establishes the starting point for evaluating any subsequent pricing changes.

Quotes are based on the information provided at the time of issuance and remain subject to verification, underwriting, market conditions, and applicable program requirements.

The guarantee protects against unjustified changes made by us. It does not prevent legitimate pricing adjustments arising from the circumstances described below.

3. Initial Pricing Assumptions

Unless otherwise expressly stated in your quote, our DSCR loan pricing is based on the following assumptions:

Debt Service Coverage Ratio (DSCR): A minimum ratio of 1.0, calculated by dividing gross rental income by principal, interest, taxes, insurance, and association dues (PITIA).

Prepayment Penalty: A five-year prepayment penalty with a fixed 5% penalty during the applicable penalty period, subject to program availability and applicable law.

Credit Score: The FICO score provided by the borrower, subject to verification.

Loan-to-Value Ratio (LTV): The requested loan amount relative to the property's estimated value, subject to appraisal and verification of outstanding lien balances.

Property Information: The property type, classification, condition, occupancy, rental income, and other characteristics provided by the borrower.

Interest Rates: Rates are based on prevailing market conditions and may fluctuate daily until locked.

Any material difference between the information used to generate the quote and the information subsequently verified may affect loan eligibility, interest rates, points, fees, or other loan terms.

4. Changes Covered by Our Guarantee

Our guarantee applies when we adversely change covered pricing or terms without a qualifying reason, including:

Increasing lender-controlled origination, underwriting, processing, or administrative fees.
Adding undisclosed lender-controlled charges.
Increasing points solely to generate additional lender or broker revenue.
Reducing quoted lender credits without a qualifying reason.
Changing our internal compensation or minimum revenue requirements.
Correcting our own pricing or calculation errors in a manner that increases borrower costs.
Voluntarily switching to a more expensive lender or investor when the originally quoted program remains available.
Increasing a confirmed, locked interest rate contrary to the applicable lock agreement.
Increasing or extending a quoted prepayment penalty without a qualifying reason.
Adversely changing expressly guaranteed loan features without a qualifying reason.
Causing avoidable delays that result in additional borrower costs or expiration of a valid rate lock.

Coverage applies only to changes attributable to us and not otherwise permitted under these terms.

5. Changes Not Covered by Our Guarantee

The guarantee does not apply when loan pricing, eligibility, or terms change as a direct and material result of the following circumstances.

A. Credit and Borrower Qualifications

Verified FICO scores differing from the scores originally provided.
Previously undisclosed mortgage late payments, delinquencies, defaults, foreclosure actions, or other adverse credit events.
Newly discovered collections, judgments, bankruptcies, liens, or outstanding obligations.
Insufficient or unverifiable reserves, liquidity, down payment funds, or other required assets.
Changes in borrower, guarantor, or borrowing-entity eligibility.
Inaccurate, incomplete, inconsistent, or unverifiable borrower information.

B. Loan-to-Value Ratio (LTV)

Higher LTV resulting from an appraised value below the originally estimated property value.
Higher LTV resulting from actual mortgage or lien balances exceeding the amounts originally disclosed.
Changes in the requested loan amount, down payment, cash-out amount, or existing mortgage payoff.
Other verified changes that materially affect LTV or applicable loan limits.

C. Debt Service Coverage Ratio (DSCR)

Verified market rents coming in below the rental income originally provided or estimated.
Previously undisclosed or underestimated property taxes, insurance premiums, or association dues.
Differences in verified rental income, leases, occupancy, or property operating information.
Changes in PITIA that materially affect the qualifying DSCR.
Failure to meet the minimum DSCR or other requirements of the quoted loan program.

D. Property Characteristics

Property classification differing from the original description.
Differences in property type, unit count, acreage, occupancy, condition, or legal use.
Identification of condominium, condotel, mixed-use, rural, commercial, or other property-specific restrictions.
Unpermitted improvements, nonconforming units, zoning restrictions, or required repairs.
Appraisal, title, insurance, or property inspections revealing previously undisclosed conditions.
Property damage, title defects, liens, legal disputes, or other conditions affecting eligibility.

E. Changes Requested by the Borrower

Changes to loan amount, loan purpose, down payment, or cash-out proceeds.
Selection of different prepayment penalty terms, including shorter, longer, reduced, or eliminated penalties.
Changes to loan term, amortization, interest-only period, or loan product.
Changes to ownership, vesting, borrowing entity, or guarantors.
Borrower-requested changes to interest rate, discount points, closing date, or other loan features.

F. Market Conditions and Rate Expiration

Daily fluctuations in market interest rates before a valid rate lock.
Expiration of a disclosed quote or pricing period.
Expiration of a rate lock due to borrower delays or circumstances beyond our reasonable control.
Borrower-requested rate-lock extensions or modifications.
Changes in third-party investor pricing or program availability beyond our reasonable control, subject to any binding written commitment.

Interest rates are not guaranteed until locked. A rate lock is governed by its separate written terms.

G. Documentation and Closing Delays

Failure to provide requested documents within communicated deadlines.
Submission of incomplete, inaccurate, expired, or unverifiable documents.
Failure to satisfy disclosed underwriting or closing conditions.
Delays caused by the borrower, seller, appraiser, title company, insurer, government agency, or other independent third party.
Failure to provide property access, required signatures, or other reasonably requested cooperation.

These exclusions do not apply when the relevant delay is directly caused by our own avoidable errors or failure to perform.

H. Third-Party Costs

Changes to independently determined appraisal, inspection, title, escrow, recording, insurance, tax, prepaid interest, reserve, or other third-party charges are not covered.

I. Legal, Regulatory, and Investor Requirements

Changes required by applicable law, regulation, governmental order, or documented third-party investor eligibility requirements beyond our reasonable control are excluded.

Nothing in this section overrides an otherwise binding loan commitment or rate-lock agreement.

6. Limitations on Exclusions

An exclusion applies only when the relevant circumstance directly and materially affects loan pricing, eligibility, or the ability to close.

We will not use unrelated or immaterial changes to justify increases in lender-controlled fees.

Changes made solely to increase our revenue, correct our own avoidable mistakes, or impose previously undisclosed lender-controlled charges remain covered.

We will provide a reasonable explanation for any adverse change to covered pricing or terms.

7. The $1,000 Guarantee Payment

If a qualifying violation occurs, we will either:

Honor the original covered loan terms, provided the loan remains eligible and those terms can lawfully be delivered; or
Pay the eligible borrower $1,000 if we cannot or elect not to honor those terms.

A borrower with an otherwise valid claim is not required to close the loan with us to receive the guarantee payment.

The guarantee does not require us to originate an unlawful or ineligible loan.

Only one guarantee payment is available per borrower for substantially the same loan transaction.

The $1,000 payment is the contractual remedy offered under this voluntary guarantee when original covered terms are not honored, without limiting any rights or remedies that cannot legally be waived.

8. Eligibility and Verification

To qualify, the borrower must have received a verifiable personalized quote, provided accurate information, and pursued a genuine business-purpose loan inquiry.

The borrower must reasonably cooperate with verification of the original quote, subsequent changes, and alleged violation.

Fraudulent, fictitious, duplicative, or intentionally manipulated claims are excluded.

A loan denial, failure to close, or change in preliminary pricing does not independently establish a guarantee violation.

9. Submitting a Claim

Claims must be submitted within 30 calendar days after receiving notice of the disputed change.

Submit your claim to [Claims Email Address] with the subject line "No Bait-and-Switch Guarantee Claim."

Include your name, property address, original quote or quote identification number, revised terms, and a description of the disputed change.

We will acknowledge receipt within five business days and ordinarily issue a written determination within 15 business days after receiving the information reasonably necessary to evaluate the claim.

Approved payments will ordinarily be issued within 30 calendar days after approval and completion of any legally required verification.

10. Quote Validity and Underwriting

All quotes are subject to their stated expiration dates, verification, underwriting approval, and applicable loan program requirements.

A website quote is not a loan approval, commitment to lend, or rate lock.

The guarantee does not require approval or funding of a loan that fails applicable underwriting, legal, or investor requirements.

11. Modifications to the Guarantee

We reserve the right to modify or discontinue this guarantee prospectively.

Changes will not retroactively reduce protection established under an eligible quote issued while the guarantee was in effect, during that quote's applicable validity period.

12. Applicable Law

This guarantee applies only where legally permitted and is subject to applicable federal and state laws.

If any provision is determined to be unenforceable, the remaining provisions will remain effective to the extent permitted by law.

Nothing in these terms waives borrower rights or remedies that cannot lawfully be waived.

13. Contact Information

LA Mortgage Dude
[Full Legal Name of Licensed Lending Company]

Website: https://lamortgagedude.com
Email: dude [at] lamortgagedude.com
Phone: (424) 484-9978
Individual NMLS: #2513002

LA MORTGAGE DUDE — NO BAIT-AND-SWITCH GUARANTEE

We stand behind our quoted pricing. If we unjustifiably increase your covered lender-controlled costs or change covered terms, we'll honor our quote or pay you $1,000.

Final loan terms are subject to underwriting, verified borrower and property information, program eligibility, and market conditions. Interest rates may change daily until locked. Additional terms and exclusions apply.