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Old 02-24-2010, 02:50 PM
 
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when you refer your client (home buyer) to a mortgage broker that you often refer people to, is there anything in it for you?

and would you recommend this as the best option for a home buyer to get the best FHA loan possible?

thanks!
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Old 02-24-2010, 02:57 PM
 
Location: DFW - Coppell / Las Colinas
38,189 posts, read 42,720,318 times
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There are laws that prevent lenders, inspectors, etc from giving us agents referral fees or incentives. I would not want them so I can honestly say I'm doing whats best for the client without any outside incentive or influence.

I want my buyers to use the absolute best lender I can find. Once we get them under contract on a home it's pretty well up to the lender to perform at their best to get the job done. I don't want some poor lender from keeping my client from getting the house of their dreams and worse costing them money if they can't get the loan delivered.

When it comes to lenders, inspectors and any others we recommend, I only want the best.
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Old 02-24-2010, 02:59 PM
 
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Most states prohibit any kind of direct monetary compensation for recommending a specific mortgage source -- when ethical agents make a recommendation it is generally because they have had other clients report (or direct experience) with a speedy and straightforward process. Speed and accuracy ensure that closings happen as scheduled and the agent gets paid for a clean closing.

You ought to shop around. I and others have put lists of things that should be positives and red flags. Search function should bring 'em up...
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Old 02-24-2010, 03:05 PM
 
10,246 posts, read 10,331,781 times
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Quote:
Originally Posted by rugerjitsu View Post
when you refer your client (home buyer) to a mortgage broker that you often refer people to, is there anything in it for you?

and would you recommend this as the best option for a home buyer to get the best FHA loan possible?

thanks!
Nope. Nada. Just the assurance that I sent my clients to professionals who are at the top of their game and will take great care of them.

I always recommend 2-3 different brokers.
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Old 02-24-2010, 04:33 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 20,762,288 times
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I only have 2 mortgage brokers who I refer clients to. I refer them because they have always managed to make the transaction happen.

I'm pretty sure RESPA prevents the sharing of money between mortgage brokers and agents involved in the transaction.
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Old 02-24-2010, 05:19 PM
 
Location: Houston area
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Nope. Not for myself. The only thing I get out of it is knowing that they might have better success with their loan than if they chose someone at random.
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Old 02-24-2010, 06:55 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 35,549,382 times
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Yup..me too. The only thing that counts is my client gets the loan and is treated fairly.

And if I smell the least taint of excessive costs...new mortgage broker.

And I absolutely distrust anyone who sells RE and mortgages. It may be legal but it is in bad taste to me.
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Old 02-24-2010, 07:10 PM
 
Location: Dallas/Fort Worth, Texas
4,197 posts, read 14,282,248 times
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I have about 4 lenders that I know that would get the job done and get the best deal for the clients. There is no incentive for us whatsoever. The same thing goes with inspectors or for any service providers.

Most of us have our business based mostly on client referrals, so we want to make sure that it goes smoothly and the client gets the best deal possible and is happy. We have seen enough empty promises from lenders that would say they could do the transaction and pull a bait and switch at the closing table.

About 4 years ago a buyer I was working with needed to have a home inspection done, she picked someone from the yellow pages because she thought that I would get some kind of kickback if she used someone I referred her to. The inspector ran the water in the bathtub and he went outside to have a cigarette or 2, turns out the bathtub was clogged and filled up and flooded the master bedroom with the brand new carpet. We also found out that he didn't have insurance either. Imagine what a mess. She ended up buying another house with me.

Naima
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Old 02-24-2010, 07:17 PM
 
Location: DFW - Coppell / Las Colinas
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Quote:
Originally Posted by olecapt View Post
And I absolutely distrust anyone who sells RE and mortgages. It may be legal but it is in bad taste to me.
Usually there is a kickback involved in this to the buyer. I'm with you on this that I would be leary of anyone doing this functions at the same time.
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Old 02-25-2010, 03:33 AM
 
1,896 posts, read 3,150,727 times
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thanks for all the input...you have eased my mind!
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