As others have said there is a difference between steering and referring and perhaps recommending a particular agent. Unfortunately it happens to our disadvantage. Ugh

No idea about Maryland, I suggest contacting your board or state's legal hotline.

Either way, I think that lender is a dick.

Check with your local board.  It does not sound good but that is different from being "legal"

Yes, it's legal - lenders do not have the same 'referral' rules that we do in either of my states (NC or SC).

And, ultimately, it's the buyers' decision.

Not sure about MD law, but there are local lenders who recommend me and my company, and I do the same for some local lenders (not always those who recommend me). Ultimately, the clients make the choice, and I remind them of that. 

Check with your local board

check with your board....

but I would think no one owns a buyer.... and unless you have a buyer agreement with that buyer, he/she is up for grabs....the lender can refer business... it's not steering, it's referring.... when you refer to another agent, that's not called steering...it's referring....and you can get a fee...the lender can't take a fee....

From what you have shared, I don't see "steering" as the issue.  I do like the way Ryan Huggins - Thousand Oaks, CA summed up his feelings on the subject.

As you mention, there is a difference in steering and referring

It is legal here in IL. But .... the LO is steering this particular buyer to an agent that will also guarantee (if possible) a closed transaction. Could also be that your buyer is complaining behind your back as you've said you've worked with that buyer for 2 years. Is that really a buyer?

Incorrect usage of 'steering' BTW.

I would be willing to bet that it is simply bad form, unless a financial incentive was offered in which case I think that might be a problem. Did the buyer go with the other agent? If they did, after all the time you spent with them then I would say the buyer's as much of a problem as the lender. Does the other agent know that you have been working with the buyer all that time? I'll check back to see what other answers come in.

Actually an unsigned "customer". I know lenders here that recommend certain agents. Not illegal, but it's a risk. That lender / loan officer could lose more business than they gain from that tactic.

I don't believe it is.

It happens all of the time. Have them stay with your trusted local mortgage loan officer.

Probably not illegal

   Hi, Thomas.

   As other suggested, consult the attorney for your local Board or Association.

     In my opinion, unless there is a RESPA violaton, probably not.  

    With respect, this is why we should get signed commission agreements before investing a lot of time into a customer.

What a good question...rather than opinionate, lets find out more Thomas

If you worked with them for 2 years, you shoul dhave had them signe dup to invest that much time in anyone. Shame on the lender and although nt illegal, unethical in my book and not good for business. Call them and let them know, but your buyer has flown the coup. Try calling your buyer too

Another reason why it's so important to have a signed Buyer Broker Agreement...

Don't see a legal issue here.

Key word is "steer" not "refer".  I would be interested in what MD law says about it

Here in Florida it happens frequently.  The lender has the right to "refer" just as much as anyone else does.  It is unfortunate but I don't think it is illegal.

Unless the lender held a gun to your person's head, it's probably not illegal. Then again, I don'ty know anything about Maryland laws. Why have you invested two years in working with someone who is unsigned.... and they are not a "client" if unsigned. And I'd ask why after two years the person you've worked with doesn't have some sense of loyalty to you even without a signed agreement.

Get an exclusive buyer agency agreement. Also, provide great service so they won't want to leave you.

I'd check with your local board so you are clear on your question. Steering might not be the right word it might be called referring.

I'd check with your broker or real estate attorney.

If there is no compensation or tie-in (Fair Housing) involved then the lender can certainly make a suggestion.

I would not think it's illegal but I'm not a lawyer and don't know if Maryland has rules that would state otherwise.  

In CA we have the Buyer Broker Agreement that protects our commission if completed properly and the buyer reads, understands and signs.  

If you have been working with a Buyer for 2 years, I would ask why  are they taking so long to buy and why would you continue with them without a contract?  

I would not even begin the process without this protection and if they have not bought in 2 years they probably aren't going to buy.  

I would not want to do business with that lender however.

Be sure to post the end result.  

Thomas Huot Generally, it is not ethical. But check with your local board.

As others have said I would check with your Board.  I would think a lender could suggest an agent or more than one but certainly not require it.

Most state associations have a legal hotline. Your broker should also have counsel.

I'm not sure Thomas Huot ! I usually give 3 or more lenders to my buyers and I tell them they are free to select anyone including those outside my referrals.  

Anyone can refer someone to an agent.  We are not allowed here to pay "bird dog" fess to anyone who sends business our way.... But a small gift card to say thank you might be appropriate.

It happens. Lender could say they referred not steered the client.

I don't think it would be considered "steering" in the legal sense. When someone asks for a plumber, I refer them tothe plumbers I think are the best. I don't see anything wrong with referring them to a particular person.

that's not steering, it's called recommending and I think it's perfectly legal.

Sounds like that lender won't be in business long. They need to offer up at least three coices of recommended agents and let the buyer decide. No idea about Maryland Law

No law against offering an opinion. I would let that lender know you are anxious to return the favor! Maybe his boss to

I would be careful using the word "steering" for any matter.

Can you prove steering?

If not, perhaps it was just a recommendation?

Nothing else to do if you can't prove it - move on

I don't think there's a law unless there's compensation involved.

 More like agent insists some other loan person to qualify a well qualified buyer. An all cash buyer will upset that  ALL CASH offers were not be reviewed until that loan agent looks over. 

Very few lawyers here, but your association will have someone who will know.  It is important to get that agency agreement signed.

Depends on why the lender is steering to a certain agent,.

It is just a referral, you would do the same referring your client to your preferred lender( if you have one or few). If you already have relationship( and hopefully buyer representation signed), just talk to your client and explain that they have no obligation to use a lender recommended agent. 

It is an attorney question, Thomas Huot.

It's a referral, not steering, the clients have a choice. Get them signed up (although that doesn't always guarantee anything either).

Thomas,

Check with your board, and the lenders we know do not do that. A

Legal question.

No

No, not really

I know some of our local lenders refer out REALTORS, and know they are not under the same rules we have as REALTORS.

Having been in the mortgage business 48 years and my wife a Realtor for 38 years....I DO NOT steer any business her way. It is not illegal,but certainly unethical. We both do very,very well financially, I would not want to lose business over a  few deals a year.

I refer 3 in everything and that is not steering.