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NAMB to Obama: Level the playing field for all mortgage originators

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Mortgage Professional America | 31 Mar 2015, 08:12 AM Agree 0
In a letter to U.S. President Barack Obama, the association urged him to update his speech material to reflect the current realities of the mortgage business, particularly with individual mortgage professionals and the role of the CFPB.
  • Tim | | 31 Mar 2015, 09:37 AM Agree 0
    Now level the playing field by stopping these illegal/unethical kickbacks to real estate brokers in the form of marketing agreements. These agreements are a complete joke and a way for mortgage lenders to buy business. Call it what you want but the entire industry realizes what they are.
  • Marc Savitt, NAIHP | | 31 Mar 2015, 09:57 AM Agree 0
    Tim is exactly right. In fact, the CFPB recently indicated they consider MSAs a "thing of value." A thing of value for the referral of business is a RESPA violation. Enforcement of these violations is another matter.

    Speaking of buying business, yesterday-the House Financial Services Committee passed the Mortgage Choice Act out of Committee. This Bill is bad for brokers!! It once contained a provision to eliminate lender paid comp from the 3% points and fees calculation. However, it was removed with little or no opposition from NAMB. WHY?? What is left in the Bill helps affiliated business arrangements, which often freeze brokers out of transactions with their "preferred lenders" or phony incentives and discounts.

    Like NAIHP, NAMB should be opposed to this bill.
  • griff | | 31 Mar 2015, 10:00 AM Agree 0
    Could not agree more, Tim. Not good news from Marc. It is amazing to me that real estate brokers can sit an affiliated lender INSIDE their office, insist the agents use them regardless of whether they are good for the client, and this is not illegal. I keep getting reminded that the cfpb and Washington in general are not there to protect the consumers, but man, affiliated arrangements are just bad.
  • Maureen | | 31 Mar 2015, 10:07 AM Agree 0
    Agreed Tim...I know so many realtors who will only "recommend" or provide the names of brokers who pay for their advertising, pay for the open house, pay for search engine optimization, etc. It was supposed to be a RESPA violation to conduct business this way. But no one is enforcing it. So again the honest broker suffers. It getting tougher and tougher to make it in a business that is continually over-regulated, and the play field is not only uneven...but ever changing...
  • Marc Savitt | | 01 Apr 2015, 10:57 AM Agree 0
    NAMB should state their official position on Affiliated Business Arrangements, MSAs, etc. These arrangements lock out brokers from many transactions, where they have a better deal for consumers. While they're at it, maybe they could come clean on who gave them the fake Sen. Johnson letter.
  • gheinecke | | 08 Apr 2015, 06:57 PM Agree 0
    Everything is DISCLOSURE. If the clients have a choice are not being swayed by false incentives being recouped through higher interest rates and the consumer is free to use whoever they wish on an EQUAL paying field than affiliated business arrangements are not wrong in this context/. Problem is builders state you can only get incentives if you use their attorney and mortgage affiliate so what happens is the consumer has their rates increased and in the long run the consumer pays without realizing. many times I am called after the fact because the lender told them that the USDA mortgages are not in their best interest . That is nonsense. Remember when an appraisal cost 200 to 250? How much do you think the banks are making on the third party appraisal affiliates ? Doesn't Barney farce FRANK own an appraisal management company????????? Kick /em all out start all over -no conflicts? Wrong- there will always be someone finding a way around the rules when the politicians get legal kickbacks or campaign contributions.
  • Genio | | 09 Apr 2015, 12:27 PM Agree 0
    The lender in bed with the real estate agent, the lenders being forced to pony up to get access to new build buyers, real estate agents selling seats in their offices to lenders, heck $500 appraisal fees? Lots of things are legal that should be questionable.
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