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A former "friend" recently decided to go with the listing agents lender recommendation, it killed me considering before talking to me, ever lender she talked to said she couldn't get a loan. She said she felt pressured and it was the only way her offer would be accepted.
The only marketing agreements I am aware of are banks/mortgage companies that have loan officers situated in the real estate offices. While I am not a fan, they are perfectly legal and most are ethical. There are several models that have been very successful in the mid-Atlantic and Central Pennsylvania/Eastern NJ. And because they pay the loan officers rock bottom (due to the "captured audience"), the buyers get great rates.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
Lonewahya knows just enough to stir the pot, but has his or her facts twisted. These companies are the most audited companies in the nation right now and they are passing with higher grades than those not in an ABA. If they pay rent, it must be fair market rent, they can't just arbitrarily say, oooh, we want business, so we will pay 10K to have an office here.......nope, no can do if that is not the fair market rent. I'm not sure if I mentioned, IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
(I am not currently in an ABA, but I was in-house MLO for several years in the early 2000's for a major mortgage company).
A former "friend" recently decided to go with the listing agents lender recommendation, it killed me considering before talking to me, ever lender she talked to said she couldn't get a loan. She said she felt pressured and it was the only way her offer would be accepted.
That's the absolute worst.......they feel the contract won't be considered, unless.......very subtle. Very manipulative.
The only marketing agreements I am aware of are banks/mortgage companies that have loan officers situated in the real estate offices. While I am not a fan, they are perfectly legal and most are ethical. There are several models that have been very successful in the mid-Atlantic and Central Pennsylvania/Eastern NJ. And because they pay the loan officers rock bottom (due to the "captured audience"), the buyers get great rates.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
Lonewahya knows just enough to stir the pot, but has his or her facts twisted. These companies are the most audited companies in the nation right now and they are passing with higher grades than those not in an ABA. If they pay rent, it must be fair market rent, they can't just arbitrarily say, oooh, we want business, so we will pay 10K to have an office here.......nope, no can do if that is not the fair market rent. I'm not sure if I mentioned, IT IS AGAINST THE LAW FOR A BANK (OR MORTGAGE COMPANY) TO PAY FOR REFERRALS.
(I am not currently in an ABA, but I was in-house MLO for several years in the early 2000's for a major mortgage company).
I didn't say they were paying for referrals. I said they are paying for "marketing agreements". The RE agency is paying the agents. Maybe they are also being placed front and center in their ad's. Maybe not. The FI isn't paying the agency's printing bill or ad space.
Bottom line is, the moment you rely on someone else to tell you what is best for you, you are sunk. Only you know what your budget is. Only you know what kind of house you are looking for. And only you are the one signing on the bottom line.
An MSA is one thing, co-branded/split-billed web platforms are another. The managing Broker/owner of the RE Company, or the Builder, can demand that buyers are pre-qualified by their in-house lender. But you don't ever see a direct referral bonus or fee.
Even with, for instance, a Boomtown platform where I'm paying three grand a month, I don't, and can't, expect every realtor to refer my team. We spend time at their meetings and in bars and restaurants, valiantly working to ingratiate ourselves to them. And then, secretly, we effing hate the 50% of them that still don't give us a shot when the opportunity arises. But we can't do anything about that.
Don't shop around online. Seriously, DO NOT SHOP ONLINE FOR A MORTGAGE. You will regret it.
On point with the topic - Best Advise so far!!!!
Quote:
Originally Posted by SmartMoney
.....The only marketing agreements I am aware of are banks/mortgage companies that have loan officers situated in the real estate offices. While I am not a fan, they are perfectly legal and most are ethical. There are several models that have been very successful in the mid-Atlantic and Central Pennsylvania/Eastern NJ. And because they pay the loan officers rock bottom (due to the "captured audience"), the buyers get great rates....
Well said SmartMoney!! There were many smaller lenders having so-called "agreements" (arrangements) for mortgages. I could write a book on examples of unethical mortgages.
Adding to Pfhtex - when it comes to shopping around, lenders are going to want to see your credit report. Do not have your credit report pulled too many times. I have since a score drastically drop after three pulls.
Again adding to Pfhtex - I agree not to shop online. I caution you on working with local brokers or smaller lenders, due to higher closing costs, junk fees, etc...
To be considered for a good loan (called the three C's) mortgage underwriters look at your credit, capacity and collateral. Meaning if you have good credit (mentioning an 800 mid score - good), a large down payment (20% or better), have good income (Low DTI score), and greater than six months’ worth of payments in savings. I suggest going to a big bank directly like Wells Fargo. Larger banks keep most of their loans. Using a smaller bank, your loan is possibly sold before the ink is dry on your closing documents. Some may argue your payment says the same, it just to whom you write the check to. I have wittness countless of problems after a loan changes between banks. Specifically missed place payments, and changing escrow amounts.
Even having a good credit score, you may be issues in your background that questions may arise. If your down payment is smaller, or a high income debt ratio (DTI), or even not having seasoned assets. If there are issues, it is then advisable to use a broker that is connected to different lenders, to shop around for the best deal available for you.
Do your homework...
Good Luck
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