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Today we speak with Rick Floyd from Homebridge about their Prospect Mortgage purchase and the CFPB.



additional comments on
"Homebridge – Prospect and the CFPB"

  1. Lisa says:

    I want to know how the builders are getting away with offering incentives if and only if the buyer uses their loan and title companies (that they typically own some small portion of). That sure seems dirty to me!

    1. Kris Anderson says:

      I agree! Builders are the biggest offenders

    2. Jim Darson says:

      Builders are getting away with it because they own the properties. That is how it was explained to me. If you sell your own home I think you have the right to give incentives to whomever you want for whatever reason. For example if I as a seller tell you that I’ll knock 5K off the sales price if you use my LO friend, I don’t know of any rule preventing me from doing that.

      Does it suck? Yes. I’ve lost a few deals to builders. It’s even more irritating when you have been working with the client for over a year helping them fix their credit, etc.

  2. Tim says:

    I agree Lisa – If a few LO’s got busted b/c they had some MSA’s in place, how are the builders able to steer their clients to another organizational that they own?! This has been going on for the 11+ years that I have been originating! I can only hope the recent news will discourage that type of activity. TBD…

  3. steve hanleigh says:

    Having worked with many “contingency” buyers of new home builders, I totally get their desire to have those buyers use a lender they can trust, as well as a broker they want involved. The incentives given that buyer by the builder are meant to insure that the buyer is not “buying time” and is truly sincere in their purchase. Its so easy to inflate a loan app, or stretch the value of their existing home, that the builder needs to be confident in the analysis of the buyers qualifications and true assets before they take a large part of their very expensive inventory off the market.Too many deals fall through due to distortions of qualifications and inflated asset values. I remember one deal that was based on gold bars being shipped from Southeast Asia….would you want to believe that and take a half million dollar investment off your saleable inventory? I’d rather wait for the gold to arrive, be sold , and provable cash assets sitting in a bank account.

    1. Gary says:

      Steve, while that explanation may hold true in a small sampling, a more accurate scenario is where there are an abundance of competent, ethical mortgage professionals able to provide a legitimate approval the buyer is still offered an incentive to go in house. Especially concerning is the requirement that the builder/seller’s lender review the application as well. If truth is on the table..there is an agreement somewhere..

      1. Gus says:

        Consider also that on every single occasion that I have experienced, my rate/price was way better than the builder’s mortgage company. The huge incentive took away all my price advantage. The war is over, they have a legal way of doing this and I no longer fight it. But I have refinanced many of these deals only a few months later.

  4. RCAHALAN says:


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