To MSA or Not To MSA That is the Question!
Guess we get to make it up?
The greatest compliment you can receive is a “referral”….This is just stupid…..
In your opinion, if a violation was found between a Realtor and a Loan Officer; who is the CFPB coming after (lack of a better phase)?
love your info! But personally, I am so tired of the letter after “E” being used by folks giving me information. I am sharing your link though.
TRUE STORY: Was on the phone just the other day with Zillow as being referred to “share” in the Zillow expense for a realtor in regards to leads. Being that I watch you guys every day and already knew about the Prospect Mtg situation, I simply asked the Zillow agent how does this comply with RESPA guidelines. Naturally I was transferred to a manager. Basically, I was told that I can only pay up to 49.9% of the total marketing costs and it would be drafted from my personal credit card monthly and since there was NO written agreement, no one would ever know anything. Not the response I was looking for. You would think that Zillow being the “big fish” ($96M Est. Worth)would have some iron clad process to protect lenders, brokers, and realtors using their platform. It sure doe not seem that way to me when you are being told “No one” will every know since there is no written agreement between lender, broker and Zillow when sharing in the expense for the Realtor. I’m sorry but our company has been around decades before Zillow and we intend to be around decades after Zillow.
MSA’s and co-marketing should not be an issue, here’s why: RESPA’s purpose is to outlaw referral fees that raise the price for the consumer. One of the mandates of QM is to cap lender and Broker fees. LO Comp. goes even further and limits LO/Originator/Broker Comp. Since compensation is being controlled, specifically for Brokers, they should be free to market as they wish because the consumer is protected by the caps already in place by these regulations. Co-marketing cannot push the cost higher than that allowed by current regulation making Brokers anyway, compliant. Sounds like a solution looking for a problem. When the Government defines how private businesses should operate, we no longer have private business.
I sure hope they go after builders. Talk about “forcing” a buyer to use a lender and other services. “If you want the $25,000 incentive, you must use our lender”. I know this isn’t a RESPA violation, but is it in the best interest of the buyers? Especially since the builders rarely offer compensation to allow buyers representation by an agent. So M/M Buyer walks into a new home office and are being ‘represented’ by the onsite agent who is obviously working for the builder.
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