Special offer
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets, CEO of Vision Drive Realty - Coastal San Diego (Big Block Realty 858.232.8722)

Spam prevention
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Thomas, Fred Griffin and John Juarez.  Please refer to the settled lawsuit between the CFPB and Re/Max Gold Coast and Prospect Mortgage.  Both from my local area.  They were found to have several RESPA violations, including ones stemming from "All buyers must cross qualify with XXX at Prospect Mortgage" (which was a VERY common practice out here).

 

The ruling and subsequent direction is that a listing agent may request that a buyer cross qualify with their lender of choice, but the buyer:

  1. Is  under no obligation to do so
  2. Must NOT be charged a fee for doing so
  3. Must not be required to fill out an application.

There is some great content on this at: https://danieldobbs.org/how-to-comply-with-the-new-cfpbs-respa-enforcement-policy/

Jul 09, 2018 01:03 PM
Rainmaker
1,844,291
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I think it is forcibly steering a buyer to the LA's favorite lender. Not cool but not banned in our MLS.  Can't wait until it is.

So your offer, unless checked out by Joe, will sit at the bottom of the offer heap.

Jul 09, 2018 11:00 AM
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Geez . . . glad I plugged in before taking off today.
Sooooooooooooooooooooooooooooooooo . . .

A CASH OFFER would get a slower response?

Doh!

Jul 09, 2018 11:26 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I think this could be a RESPA violation as Fred Griffin stated. A

Jul 09, 2018 11:24 AM
Rainmaker
508,318
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

I don't like it, but it is a sign of the times. With multiple offer situations at many price points, the listing agent would be remiss to not verify the Pre-Qual, which could take some time.

However, you have to be very careful not to show preferential treatment to one lender. Buyers have a right to choose their own lender. Yet, new home sales companies seem to get away with it all the time.

Jul 09, 2018 10:58 AM
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Potential RESPA violation, if there is money involved. 

    And what do they mean, "quicker responses"?  If I have a fiduciary with my Buyer, I will go directly to the Seller if we don't hear back by the Time for Acceptance stated in the offer.

Jul 09, 2018 10:56 AM
Rainmaker
1,311,397
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Offensive. Crossing the line on fiduciary respnsibility. Perhaps illegal due to steering.

LA needs to have a chat with their broker and get some sound advice.

Jul 09, 2018 11:29 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

That's totally inappropriate.  It's lewd, lascivious, salacious, and outrageous.

Jul 09, 2018 11:25 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I think she should be reported to the licensing board.... with a copy of that statement....

Jul 09, 2018 11:05 AM
Ambassador
2,436,099
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I have seen listings where the listing agent indicates a buyer must be pre-approved by their mortgage rep, but that the buyer can then use whoever they want for the actual purchase. I have never seen any agent say deals pre-qualified by a different mortgage broker will be prioritized differently (which is what I'm reading here). Well, what I really read is that offers will sit on the bottom if someone else qualifies them. That is not right.

Jul 09, 2018 01:23 PM
Rainmaker
5,216,398
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

When some attorney files a lawsuit for "Tortious interference with a contract", the managing broker and his franchise will soon part company with the listing agent. The managing broker may be parting with his license and the franchise suffering from negative publicity.

Anybody just looking for bodies and interviewing. Contact him!

Jul 09, 2018 12:25 PM
Rainmaker
911,338
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

F him and Timothy D. Buyers can use any lender they choose and offers better get presented in timely fashion.

Jul 09, 2018 12:25 PM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I would not word it like that.  We do employ a vetting process with buyers. It's to protect the seller in assuring a second set of eyes have seen the financing. Never ever is it suggested there will be preferential treatment. No one has to be vetted to get their offer presented to the seller. We all know that some approvals are not worth the paper they are written on. 

Jul 09, 2018 04:02 PM
Rainer
417,221
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

It is worded in a rude manner BUT not a RESPA violation unless you can show money changing hands as in Tim D pays for agent's Zillow ads or flyers or sits in his office without an NMLS designated address... and so on. In reality, there are many lenders who are crummy, as in all things.  

Jul 09, 2018 03:47 PM
Rainmaker
711,852
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

I have seen this before and did ask about it. However, this was not at all uncommon when selling REO property in which the buyer was required to provide a prequal letter from the bank who owned the REO. They didn't have to use the bank, but had to get the prequal from them. 

Jul 09, 2018 02:53 PM
Rainmaker
758,035
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

That don't sound right. I have heard REO Agents say buyers must be preapproved by their lender but can use any lender they want to purchase. This is just a straight up unethical proposal. 

Jul 09, 2018 01:47 PM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Sounds very illegal to me.

Jul 09, 2018 01:05 PM
Ambassador
6,393,404
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Quite a steering job, would check into the legality of this.

Jul 09, 2018 12:53 PM
Rainmaker
7,836,134
Roy Kelley
Retired - Gaithersburg, MD

It does not bother me.

Jul 09, 2018 12:50 PM
Rainmaker
2,390,620
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I would want to ask the listing agent "Why" Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D and then I would go from there if I had a buyer who wished to use another lender.

Jul 09, 2018 11:51 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Gob-smacked in Charlotte! Talk about steering!

Jul 09, 2018 11:51 AM
Ambassador
5,230,057
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Just WOW! Sadly, they do this and get away with it - just like the builders have done for decades. 

Jul 09, 2018 11:26 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Go-getter

Jul 09, 2018 10:52 AM
Rainmaker
716,049
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Totally inappropriate. Time to go to the seller directly, by-pass listing agent.

Jul 09, 2018 07:53 PM
Rainer
427,257
J.R. Schloemer
Kentucky Select Properties - Louisville, KY

I think this may be better served with a call to the CAR legal hotline to ask them their opinion on the matter. 

From my perspective, I do not like it.

Jul 09, 2018 06:45 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I don't like that kind of strong arming. When I did REOs with Chase they required one of their loan officers prequalify the buyer even if the buyer had no intention of using them. I didn't like that either. I wonder if the listing agent has a financial interest in the lender.

Jul 09, 2018 04:07 PM
Rainmaker
400,356
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

First of all, what listing agent wants a pre-qual and instead of a pre-approval??

That aside, it's probably a violation to offer better response times based on working with the agents' preferred lender.  If it's not, maybe it should be.

Nothing wrong with requiring a cross-qualification with the preferred lender as long as the buyer is not required to obtain financing through that lender and the buyer's offer gets equal consideration.

Jul 09, 2018 03:26 PM
Rainer
54,940
Jordan Ayan
The Lifestyle Collection - Scottsdale, AZ
Luxury Market Expert, CLHMS,Million Dollar Guild

Way over the line IMHO.  Probably illegal too.

Jul 09, 2018 03:23 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not much.

Jul 09, 2018 12:18 PM
Rainmaker
343,050
Mott Marvin Kornicki
Waterway Realtors® • Notary Public & Apostille - Sunny Isles, FL
Miami Notary & Apostille 786-229-7999

Looks like it borders on spam... steering is for certain...

 

Jul 09, 2018 10:50 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Joseph Domino 480-390-6011 nailed this one!

Jul 10, 2018 05:56 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The listing agent is advising buyer agents how to give their buyer an advantage.  For example a approval from Quicken Loans Rate Lock suggests a buyer thoroughly vetted. And sellers VALUE the assurance of closing.

Yes, I agree, the listing agent needed to invest more in wordsmithing. This, cross approval strategy, was a COMMON practice of Coldwell Banker not so many years ago. It may still be in play. 

It is surprising how many buyer agents think it's OK to submit a purchase offer without accompanying financial. This LA makes it clear financial vetting is important.  I do see these same buyer agents crying, "PROVE you submitted my buyers offer to the seller." 

Everyone wants everyone else to do it their way.

Jul 10, 2018 05:46 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I think they may be violating the law. You can not make any buyer use any one loan source

Jul 10, 2018 05:21 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D - now if the seller has instructed the listing agent to do so - it is okay.

Otherwise....

Jul 09, 2018 11:10 PM
Rainer
378,517
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

RESPA violation anyone?

Jul 09, 2018 10:05 PM
Ambassador
3,164,294
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I think if that listing agent worked for me I'd fire them.

Jul 09, 2018 09:41 PM
Rainmaker
280,599
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

Something smells

Jul 09, 2018 06:27 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

That's a fast track for a RESPA violation in our state...

Jul 09, 2018 04:31 PM
Rainer
117,135
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

I had a prequalified client once who went to an open house and another lender was there who stated that their offer would be given special treatment if they used this lender and not theirs.

They switched and got offer accepted, but I thought that was super unethical of the lender to do. 

Jul 09, 2018 04:04 PM
Rainmaker
1,045,440
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Wow never had an agent do that yet and based on Ryan Huggins - Thousand Oaks, CA answer I'm equally glad the thought never occured to me to do so as the Listing Agent 

Jul 15, 2018 03:42 PM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Time to talk to an attorney? 

Jul 10, 2018 09:15 AM
Rainmaker
851,242
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

I don't like it.  Smells like someone elses needs are at the top of the pile... 

Jul 10, 2018 07:00 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Sounds like a good buddy of the listing agent.

Jul 10, 2018 06:19 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Ryan has answered.

Jul 09, 2018 05:02 PM
Rainmaker
5,868,544
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I see this occasionally too, but my buyers don't start looking without a pre-approval.

Jul 13, 2018 02:48 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This shows me that they are not representing their client in a positive way

Jul 12, 2018 04:20 PM
Rainmaker
74,540
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

No comments 

Jul 11, 2018 02:38 PM
Rainmaker
399,703
PropertyMinder (AccelerAgent)
PropertyMinder, Inc. - San Jose, CA
Modern Tools for the Modern Agent

 - Tim

Jul 10, 2018 02:29 PM
Rainmaker
1,574,666
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

An idiot attempting to funnel business to a friend.... I always gave 24 hours for response period.... If it did not come I assumed the listing agent was incompetent and I called their broker.  I worked for my buyer.

Jul 10, 2018 10:35 AM
Rainmaker
763,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

It has become a legal issue to force someone to cross qualify here in our community.  

Jul 10, 2018 10:17 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Sort of leaves a sour taste and gives me the expectation that a buyer using this lender's services will have the edge

Jul 10, 2018 08:45 AM