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Originators aren’t thrilled about RE/MAX entering mortgage space

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Mortgage Professional America | 27 Oct 2016, 08:15 AM Agree 0
Many originators worry that the recently announced entry of RE/MAX into the mortgage space will stifle competition and ultimately hurt borrowers
  • Carolina Celeste Pascua | | 27 Oct 2016, 12:07 PM Agree 0
    Deja Vu all over again if the government will allow that then there is really something wrong with this country!
  • Awake | | 27 Oct 2016, 12:20 PM Agree 0
    What happen to no steering and kickbacks?? That exactly what this will be. What is the difference between this and an inhouse lender that sits in an office???
  • MAG | | 27 Oct 2016, 12:31 PM Agree 0
    So, who will be running the mortgage side and where does their experience come from? That's the real question I have. Will it be viable? Probably. RE/MAX is large enough to hire as many attorneys as they need.
  • Really? Really Re/Max | | 27 Oct 2016, 12:32 PM Agree 0
    I understand Re/Max trying to please all the people all the time but this spells bad news and bad idea for Re/Max. When they find it to be unsuitable for who they are and what they do, mortgage originators will have that bad taste on Re/Max. And like Wells Fargo, building that trust back will be a challenge for Re/Max. Bad Idea - Re/Max - Bad Idea
  • | | 27 Oct 2016, 12:32 PM Agree 0
    Ownership is the difference. Just like when the real estate companies own their own title companies
  • Carol | | 27 Oct 2016, 01:20 PM Agree 0
    There are other outfits who have successfully partnered, such as PHH Mtg. and Coldwell Banker, they help customers find the correct program that fits the INDIVIDUAL need of each applicant. Not all lenders offer or specialize in all program/products. Ultimately it is the consumers choice and the realtors themselves are not bound to any specific lender, at least this is what I have experienced over many years in originating mortgages. If they hire the right mortgage originators for the job, they should be successful.
  • Sandy (Owner/LO) | | 27 Oct 2016, 02:14 PM Agree 0
    They have no idea what they are getting into! I am sure they are looking at the sales volume of sold properties and thinking if they had the mortgage mortgage side as well just how much they could make. They have no idea the time and manpower it takes to close mortgages today even with solid borrowers with great jobs and credit. The mortgage process and timelines and regulations are very strict. I see realtors putting massive pressure on those originators working in those offices to perform. How can they possibly think they would take better care of the customer than someone outside of their office. How in the world does this benefit the consumer? Real Estate offices have tried this time and time again and it hasn't worked. They should be happy with the amount of money they are making on the sales transaction and be GLAD they are not responsible for the mortgage. I agree that current Mortgage companies will quit referring buyers to Re-max due to the conflict. I also see seasoned realtors with strong lending relationships staying with their current lenders.
  • Joe the Lender | | 27 Oct 2016, 03:22 PM Agree 0
    That is a bunch of bull. In my area, we hands down beat the rates and cost of the big local real estate companies in-house lender. If it were just a suggestion of using the in-house lender, I probably would not care, but it is the sneeky way of capturing those customers.

    Many clients tell me they thought they had to use the in-house lender, because 'the agent said' . Then there are all my pre-approved clients who tell me the lies their realtor tells them about other lenders, trying to get them into the in-house lender.

    The clients are browbeat by the agent to use their lender, especially as the agents are browbeat by their managers to bleed the company colors, and get as many people as possible into the in-house lender, where they can over charge them.

    This isn't a deal for the clients, it is a thinly veiled rip off of unsuspecting home buyers everyday. Right up their with the big national builders scamming people with their phony 'incentives' if they use the builders lender. This same local real estate company, even in their affiliated business disclosure uses verbiage to 'scare' the client - something along the line of "if you use someone other than our in-house lender, we can not guarantee a successful closing, and other lenders are known to not close on time. You may lose the home using someone else." WTF??? Shocking, but this is also the same company that has been fined for all sorts of other illegal kickback activities to their agents when an agent successfully gets the client to use the in-house lender and title company. Yet, they continue to do it day after day after day.

    You think ReMax won't pressure their agents to pressure clients to use their new lender? Of course they will.

    In house lenders and in-house title companies are simply bad for home buyers, and should be flat out made illegal. An affiliated business disclosure does not protect the client from over-charging and strong arm tactics used against unsuspecting home buyers. You hear us CFPB?


    --------- Previous Comment ----
    "There are other outfits who have successfully partnered, such as PHH Mtg. and Coldwell Banker, they help customers find the correct program that fits the INDIVIDUAL need of each applicant. Not all lenders offer or specialize in all program/products. Ultimately it is the consumers choice and the realtors themselves are not bound to any specific lender, at least this is what I have experienced over many years in originating mortgages. If they hire the right mortgage originators for the job, they should be successful."
  • None | | 27 Oct 2016, 03:27 PM Agree 0
    Well there you go Carol. They need people like you.
  • | | 27 Oct 2016, 04:48 PM Agree 0
    Such negativity. The agents from Coldwell Banker that I know do not receive kick backs and use lenders of choice. I for one work for a Direct Lender (not in house with anyone) and have done business with folks from all Real Estate agencies. It is a matter of fit for the customer, second opinions are becoming more common. It is too bad that the customers interests are always thought of last. The customer should be first and we can control that if we care enough to. If I cannot help someone by providing the best programs and service available to me by my employer, then I do not deserve their business. The consumer has become quite educated over the years. Treating folks with honesty and respect will earn you business, nothing more.
  • lefty20ks | | 27 Oct 2016, 06:26 PM Agree 0
    I am wondering where the incentive for the RE/MAX Realtor is for them to refer customers to the mortgage entity. RESPA clearly states that they cannot receive anything "of value" for a referral. If their compensation for that transaction is in any way different than for a transaction with a different lender involved they are in violation.
  • Ryan W. | | 27 Oct 2016, 06:36 PM Agree 0
    Very risky for RE/Max from multiple facets and not just the compliance and operational side of running a large national mortgage company but from losing referrals to agents from originators, co-marketing efforts and programs w/ MLO's, deals and relationships in general; and if the MLO's they employ are not top-tier and just order takers, they'll eventually have fall out w/ agents as well because those agents will be looking to switch RE brokerages in order avoid the pressure or influence to use their in-house mortgage company.

    They should realize that nationalizing something like this in today's RE market is a terrible idea and that encouraging agents to partner with local, dependable, and experienced mortgage brokers is always key. I'm curious to know if their primary agenda in this is monetary related or process control related. I'm sure both are part of the mission but if primary is $$$ related I think it's going to result in the cliche "one step forward and two steps back". Bad move in my opinion. They should have focused this time, effort and $$$ on pushing an agenda for their agents to connect and co-market with new technologies and marketing strategies more heavily with local mortgage brokers.
  • Guy Schwartz, CMC | | 31 Oct 2016, 04:52 PM Agree 0
    BRING IT!
    do you think that Re/Max has some secret sauce to attract talent?
    I don't think so.
  • Matt | | 03 Nov 2016, 11:20 AM Agree 0
    There are Dozens of real Estate offices here in NE Florida have some form of "desk rental" relationship already with a variety of banks and lenders. They have an LO parked in their office, on site, everywhere you go. Berkshire Hathaway, Keller Williams, Coldwell Banker, Watson...you name it, they all have these relationships. Some still own mortgage companies! You throw in the Builder owned Mortgage Companies and the market is pretty much covered up. It makes it very hard for the independent LO to go out and drum-up new business. They do not even allow you to drop off rate sheets or any marketing materials any more! Why, because their lender is paying to be there. They pay the Broker, mind you, not the agents! So while the big banks are fending off the regulators and getting hammered with large fines, it's business as usual for the rest of the industry. I thought all these "closed" relationships were supposed to be eliminated by the CFPB. Then, customers could go out into a competitive space to find financing and we could back to earning and retaining our business through hard work, equitable pricing and fees. I had an agent say to me recently, I always give out three cards.....ok, so why is there a sign on her door with the name of a Mortgage Company on it? So why does Re/Max getting in the mortgage business surprise anyone?
  • Matt | | 03 Nov 2016, 11:22 AM Agree 0
    Where is PHH now? Their efforts to get back into the retail space seems to have stalled...they have disappeared from our market and their whole team works for another company now!
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