Val Evans

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Rainmaker
805,907
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I just glossed over this, but I would GUESS that since RESPA pertains to federally funded and insured mortgages, and this program provides liquidation of equity via private investors who secure their investment with a lien against the property . . . that may be the loophole.

Nov 13, 2015 03:39 AM
Rainmaker
573,448
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Why does anyone assume that some "Legal" department approved it?

Builders violate RESPA all the time when they tie benefits to using their mortgage and their title company.  Until someone complains, it is business as usual. 

I once turned in a dirtbag broker who was forcing my buyer to use their affiliated services.  In addition, their title company did not close according to the commission as stated in the contract...they paid me less and the listing office more. (contrary to what the contract stated)

The response from the state was:  "Yes Eve, you are probably right however, we do not have the manpower to persue it."

Personally, I see a big problem with that ad...regardless of how they spin it.

Eve

Nov 14, 2015 03:49 AM
Rainmaker
1,587,728
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

No where does it say a Realor® earns 2.5% commission. Perhaps it is directed solely for independent mortgage brokers?

Nov 14, 2015 12:05 AM
Rainmaker
3,423,528
Richard Weeks
Dallas, TX
REALTOR®, Broker

Probably because no one will take the time to refer them.

Nov 13, 2015 09:58 PM
Ambassador
2,759,037
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good Saturday morning Val. I'm sure they had attorneys go through this to make sure that it did not violate RESPA.

Nov 13, 2015 05:21 PM
Rainmaker
816,802
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Val - I'm not exactly sure whether this is a RESPA violation or not. I do know a few years back we had agents who were acting as lenders and double dipping.

I don't think I would touch this unless I got some confirmation that it was perfectly legal.

Nov 13, 2015 03:40 PM
Ambassador
1,770,455
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I think it is just a referral.

Nov 13, 2015 12:06 PM
Ambassador
3,695,516
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Even if it's a loophole, I'd be careful.  I don't want to be the one they go after if there is a loophole in the loophole!  Not worth going to Club Fed for a referral fee.

Nov 13, 2015 11:32 AM
Ambassador
4,700,009
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Probably not a federally backed loan, hopefully they know what they are doing

Nov 13, 2015 10:51 AM
Rainmaker
558,814
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Val,
It certainly raises red flags. There is legal, ethical and best practice. Can this pass all three tests?

Nov 13, 2015 09:38 AM
Rainmaker
1,301,232
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Very interesting.  I'm with Mike on this, it is targeting past clients so should be kosher.

Nov 13, 2015 09:15 AM
Rainmaker
3,064,654
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Interesting question - perhaps bring it to Judy Lowe's (AZ Real Estate Commissioner) attention?

Nov 13, 2015 06:36 AM
Rainer
230,824
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

this is no different than a referral program. this is NOT part of a ongoing or potential deal that is eminent for your client this is a past client or in your sphere and looking to make a referral to a equity lender. there is nothing illegal with this

Nov 13, 2015 06:32 AM
Rainmaker
291,980
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

This is a refi for reverse mortgage and not sure if RESPA applies as title and ownership remains . But I think this is not the right way to do business. 

Nov 13, 2015 04:44 AM
Rainmaker
1,406,927
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Val Evans Unless they are licensed brokers, this may be considered a kickback for sending them referrals. Don't know for sure.

Nov 13, 2015 04:33 AM
Rainmaker
5,358,896
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

WOW...how are they getting away with that???  advertising commission percentage and dollar figures.... unbelievable....

Nov 13, 2015 04:19 AM
Rainmaker
4,798,687
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good question, and I don't have an answer for you.

Nov 13, 2015 03:44 AM
Ambassador
1,554,836
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Interesting. I wonder if it's because it's a refi? I have no idea....but would never consider doing it. 

Nov 13, 2015 02:48 AM