Mortgage brokers say one-third of clients failed to close in August

Loan fundings not always the cause of cancellations, survey finds

A new survey of mortgage brokers reveals that one in three prospective home buyers who had signed purchase and sale agreements in August ended up cancelling.

August was a turbulent month for mortgage lenders, as many investors stopped buying securities backed by home loans because of fears of rising delinquencies and defaults.

Not all of the cancellations reported in the survey of 1,744 mortgage brokers by Campbell Communications Inc. were the result of problems funding loans.