Comments on: Are you leaving too much on the table? http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 23:08:33 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Sellers — are you getting SC@EWED by the lender? Fight back! | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-130445 Sellers — are you getting SC@EWED by the lender? Fight back! | Rain City Guide | A Seattle Real Estate Blog... Wed, 02 May 2007 16:40:50 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-130445 [...] Sellers — are you getting SC@EWED by the lender? Fight back! May 2, 2007 Over the last few weeks, there have been a few posts here on RCG discussing the means by which loan originators enhance their income by “harvesting” seller paid closing costs that otherwise would have been retained by the seller.  In a nutshell, the process works like this: In the purchase and sale agreement, seller agrees to pay “up to” a certain sum in buyer’s closing costs.  Immediately prior to closing, when all costs are known, the loan originator determines that the closing costs are less than the maximum amount to be paid by the seller.  The loan originator then increases the loan origination or related fees to “soak up” the difference between the “actual” costs of providing the service to buyer and the amount that can be charged based on seller’s obligation to pay up to a certain amount. [...] [...] Sellers — are you getting SC@EWED by the lender? Fight back! May 2, 2007 Over the last few weeks, there have been a few posts here on RCG discussing the means by which loan originators enhance their income by “harvesting” seller paid closing costs that otherwise would have been retained by the seller.  In a nutshell, the process works like this: In the purchase and sale agreement, seller agrees to pay “up to” a certain sum in buyer’s closing costs.  Immediately prior to closing, when all costs are known, the loan originator determines that the closing costs are less than the maximum amount to be paid by the seller.  The loan originator then increases the loan origination or related fees to “soak up” the difference between the “actual” costs of providing the service to buyer and the amount that can be charged based on seller’s obligation to pay up to a certain amount. [...]

]]> By: Rhonda Porter http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129133 Rhonda Porter Sat, 28 Apr 2007 04:33:55 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129133 This is why I had to post this. I'm surprised how many agents don't know how often this happens. According to Lynlee's post, http://www.raincityguide.com/2007/04/25/how-loan-officers-harvest-seller-paid-contributions-an-escrow-perspective/ it's all the time. It would be undetected by an agent without the original GFE. This is why I had to post this. I’m surprised how many agents don’t know how often this happens. According to Lynlee’s post, http://www.raincityguide.com/2007/04/25/how-loan-officers-harvest-seller-paid-contributions-an-escrow-perspective/
it’s all the time.

It would be undetected by an agent without the original GFE.

]]> By: James Hsu http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129132 James Hsu Sat, 28 Apr 2007 04:21:43 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129132 Oh that's just got scandalous written all over it. Even if it wasn't...it flies against my particular morals. Oh that’s just got scandalous written all over it. Even if it wasn’t…it flies against my particular morals.

]]> By: Rhonda Porter http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129131 Rhonda Porter Sat, 28 Apr 2007 04:17:53 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-129131 I learned more about this scenerio today...kind of adds a whole new twist. The selling agent is also the loan originator (who is taking the left over "seller closing cost credit"). The transaction did fall apart after some very strange twists and turns. I learned more about this scenerio today…kind of adds a whole new twist. The selling agent is also the loan originator (who is taking the left over “seller closing cost credit”).

The transaction did fall apart after some very strange twists and turns.

]]> By: How Loan Officers Harvest Seller Paid Contributions: An escrow perspective for buyers and sellers. | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-128493 How Loan Officers Harvest Seller Paid Contributions: An escrow perspective for buyers and sellers. | Rain City Guide | A Seattle Real Estate Blog... Thu, 26 Apr 2007 04:50:12 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-128493 [...] How Loan Officers Harvest Seller Paid Contributions: An escrow perspective for buyers and sellers. April 25, 2007 Preface: Last week Rhonda Porter brought up the topic of “Are you leaving too much on the table.” The latter part of her post suggests that the Loan Officer harvested the amount of seller contributions that were left on the table. Within the commentary that followed, the question was asked if escrow sees this occur,and if so, how often? It raises many questions beginning with agents having a thorough understanding of what is in the best interest of their clients. Further, it casts a bright light on the issue of how agents should approach drafting purchase and sale addenda that are clear (no vagueness) and meet the intention of their clients. Lastly, questions of ethics are raised. The harvesting of seller contributions by loan officers is much more frequent than agents probably know, partly due to the fact that some agents may know very little how the system can work against them and their clients. [...] [...] How Loan Officers Harvest Seller Paid Contributions: An escrow perspective for buyers and sellers. April 25, 2007 Preface: Last week Rhonda Porter brought up the topic of “Are you leaving too much on the table.” The latter part of her post suggests that the Loan Officer harvested the amount of seller contributions that were left on the table. Within the commentary that followed, the question was asked if escrow sees this occur,and if so, how often? It raises many questions beginning with agents having a thorough understanding of what is in the best interest of their clients. Further, it casts a bright light on the issue of how agents should approach drafting purchase and sale addenda that are clear (no vagueness) and meet the intention of their clients. Lastly, questions of ethics are raised. The harvesting of seller contributions by loan officers is much more frequent than agents probably know, partly due to the fact that some agents may know very little how the system can work against them and their clients. [...]

]]> By: Rhonda Porter http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126890 Rhonda Porter Sat, 21 Apr 2007 00:55:55 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126890 Tim, I would love to see your post. I don't think that the other parties involved are aware how much this does or can happen. And from my post... I don't think it's really been addressed. Morgan at Blown Mortgage did a less "sugar coated" version of this post. Maybe some LOs think it's okay...I just know that when the offer was written, debated and finally agreed to...NO ONE was thinking they would pay me (or any LO) some extra $$. This post went off on the exchanging of keys, etc...which it is fun to watch how the comments evolve...however... I do feel this is worth it. :) And I know you two would do it justice. (Justice...what a nice word!) Tim, I would love to see your post. I don’t think that the other parties involved are aware how much this does or can happen. And from my post… I don’t think it’s really been addressed. Morgan at Blown Mortgage did a less “sugar coated” version of this post.

Maybe some LOs think it’s okay…I just know that when the offer was written, debated and finally agreed to…NO ONE was thinking they would pay me (or any LO) some extra $$.

This post went off on the exchanging of keys, etc…which it is fun to watch how the comments evolve…however… I do feel this is worth it.

:) And I know you two would do it justice. (Justice…what a nice word!)

]]> By: Tim http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126888 Tim Sat, 21 Apr 2007 00:49:54 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126888 Rhonda, Wow. Lynlee & I will do a post on your question. It deserves it. It raises tons of questions. Tons of em: ethics, agency issues, agents blind faith that the LO is acting in the best interests of their clients, agents who believe they are writing iron clad addendums regarding contributions, or ANY other P & Sale contractual item for that matter. Sorry I didn't catch your question earlier. Rhonda,

Wow.

Lynlee & I will do a post on your question. It deserves it. It raises tons of questions. Tons of em: ethics, agency issues, agents blind faith that the LO is acting in the best interests of their clients, agents who believe they are writing iron clad addendums regarding contributions, or ANY other P & Sale contractual item for that matter.

Sorry I didn’t catch your question earlier.

]]> By: Rhonda Porter http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126402 Rhonda Porter Thu, 19 Apr 2007 22:15:49 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126402 Tim, How often do you see (as far as you can tell) a LO consume the leftover seller closing cost credits, such in my example above? Or/and how often do you refund the cost to the seller if the credits cannot be used? Tim, How often do you see (as far as you can tell) a LO consume the leftover seller closing cost credits, such in my example above? Or/and how often do you refund the cost to the seller if the credits cannot be used?

]]> By: Real Central VA - Tracking the Charlottesville and Central VA real estate market and more » Lenders, appraisers and more - Thursday links 04-19-2007 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126365 Real Central VA - Tracking the Charlottesville and Central VA real estate market and more » Lenders, appraisers and more - Thursday links 04-19-2007 Thu, 19 Apr 2007 20:00:39 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126365 [...] 2 - Are you leaving too much on the table? [...] [...] 2 – Are you leaving too much on the table? [...]

]]> By: ARDELL http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126360 ARDELL Thu, 19 Apr 2007 19:55:30 +0000 http://raincityguide.com/2007/04/17/are-you-leaving-too-much-on-the-table/#comment-126360 P.S. For long closings I do "catered events", but the champagne can't get popped until the papers are all signed :) P.S. For long closings I do “catered events”, but the champagne can’t get popped until the papers are all signed :)

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