Today is my 20th Anniversary as a Real Estate Agent. Seemed like a milestone worth noting.
Still had my original photo taken back in 1990, so I thought I’d share it with you…yes back before cell phones. 🙂
My grandchildren are pretty much the same age as my children were back then. We didn’t use email…we didn’t even use faxes…and the mls was DOS with the only pictures available via the mls “book”.
We’ve come a long way, baby!
My “cell” phone in 1990 had a cord too.
Next week, I’m helping to organize an internet marketing educational event and I encourage everyone interested to set aside next Thursday to join us! For the BuzzRE event, we’ve lined up some of my favorite educators in real estate marketing including:
In addition to the great lineup of speakers, there’s going to be ample opportunities to learn from and network with hundreds of agents from the Pacific Northwest, many of whom are leaders in internet marketing.
It doesn’t matter if you’re want to learn about SEO, SEM, blogging, conversations, tools, or any other online marketing topic, the experts will be there and you just need to join us to take part!
Details for location and much more are on the BuzzRE website, but here’s a few key stats:
Cost: $25
When: June 2nd: 6pm – kickoff party
June 3rd: 9am – 5pm (with after party till 11pm)Where: McMenamin’s Edgefield
2126 S.W. Halsey St. Troutdale, OR 97060
(Just 10 minutes east of PDX)More info: http://buzzre.com/
Registration: http://ticketsoregon.com/event.php?event_id=537/
We ran another BuzzRE event in Orange County a few weeks ago and it was so much fun. So many great people and so much great feedback, which has really helped guide this event in Portland!
Are you going to be there??? Let us know!
Let us know if you’re going to be there! Either here or on Twitter! (The hashtag to connect on twitter is: #BuzzRE). And just a few of the Seattle folks I’ve noticed mention they’re going to be there include: Linda Aaron, Galen Ward, Darin Persinger and Scott Thomas…
So much fun and let me know if I can add your twitter handle to the list!
[For those interested in a trip down memory lane… I had conversations with another real estate old-timer not too long ago, and we look back at the Las Vegas NAR event in ’07 as the kick-off point for real estate conversations on Twitter… Back then, we were all trying to figure out if there was anything behind the hype of Twitter, and it seemed to me that the best place to figure out if it made sense was at a conference where we could use the tool to better connect. With that in mind, I posted a list of real estate folks with Twitter accounts who would be attending NAR so others could follow along and connect with us. While the list started off small (I published the list with only 5 twitter profiles: Jeff, Joel, Jessica, Keith and Myself), I remember that by the end of the week, I was connected to over 50 people on Twitter who I’d met at the conference… and I like to think that the background real estate conversation on Twitter that was sparked at NAR ’07 has never really died down!
Anyway, I was reminded of this story as I posted this list of a few folks from Seattle joining us at BuzzRE and realizing how these small lists of people sometimes blossom into unpredictable and amazing conversations!]
I hope to see you in Portland next week!
“Cause the good ole days weren’t always good…and tomorrow ain’t as bad as it seems.” Billy Joel Keeping the Faith
Believe it or not…this is a post about Title Companies and Escrow Services and…my ever favorite topic: Homebuyer’s Rights. It’s a plea, really. A humble request for help from someone, or many someone’s, in authority.
In “The Good Old Days”, an agent ordered “Preliminary Title” AND “pre-opened” escrow, when they listed a property for sale. To encourage this practice, Title Companies offered the seller a discount for pre-ordering escrow so that the Title Company was guaranteed not only the Title Insurance business and money, but the right to be the Escrow Closing agent and earn that money in addition to the Title Insurance premium. A good business practice, I guess, and reasonably appropriate back when every agent represented sellers of homes and never buyers of homes.
You know…”the Good Old Days…(that) weren’t always so good”, when buyers were represented by no one, had no rights, and the Rule of the Day was Caveat Emptor.
In the present day in the here and now, meaning “The Seattle Area”, our basic Real Estate Contract has a provision for choosing Title Insurance Company that does not refer to anyone’s choice. Just a blank place for the writer of the contract (usually the agent for the Buyer – since buyers write and make the offer on this contract) to enter the name of the “Title Insurance Company”.
Then there is another line after it that says “a qualified closing agent of buyer’s choice:”
There are still some real estate agents, with the encouragements of added benefits to do so from Title Companies, who are PRE-ORDERING ESCROW before the buyer of the home is a known entity. Who CHOOSE the “qualified closing agent of buyer’s choice” in advance of the buyer being a known entity. Please stop that. And Title Companies…please, please stop offering seller’s agents and sellers “bribes” to encourage this practice of “pre-ordering” escrow in advance of the buyer being a known entity.
I agree that the owner/seller should choose Title Insurance Company, because the seller has to procure and pay for an Owner’s Title Insurance Policy and give it to the buyer in this area, as part of the means of conveying clear title to the buyer of their home/property.
And…it’s quite OK to “suggest” that escrow be X in the Agent remarks section. But to OUTRIGHT DEMAND THAT ESCROW MUST BE SELLER’S CHOICE instead of the obvious contract intent of “buyer’s choice of escrow”…well, frankly, it’s an antiquated and totally inappropriate activity in this day and age.
I know that Rome wasn’t built in a day and change takes time…but I urge you to at least move in the right direction so that tomorrow can, and will, be a better time.
Until then…I’m gonna Keep the Faith.
I recently received this question from a Rain City Guide reader:
I wanted a GFE from my lender… but am told I can only get one if I lock in the rate. Is this legal?
The above items are how HUD defines a loan application. One item that can be a bit tricky for consumers and loan originators alike is the property address. Yes, a mortgage origiantor can issue a Good Faith Estimate without a property address, however IF they do, it’s at a substantial risk.
From HUD’s RESPA FAQs (April 4, 2010 edition) 33:
…a GFE issued without a property address, the future receipt of the property address is not a changed circumstance that would allow the loan originator to issue a revised good faith estimate.
This means that the Mortgage Loan Originator would be on the hook for fees that are outside the specific tolerances set forth in the HUD’s Good Faith Estimate if a MLO issued the GFE without a specific property address. I think this is something that HUD needs to take a serious look at this if they truly want the Good Faith Estimate to be a shopping tool for consumers–otherwise, the “shopping” process can only take place after the borrower has identified their next home.
An application includes information the loan originator requires the borrower to submit in anticipation of a credit decision. If a loan originator issues a GFE, the loan originator is presumed to have received all six pieces of information.
A mortgage loan originator CAN issue a good faith estimate without the rate being locked. Going from a “float” (unlocked) to a locked rate constitutes a “changed circumstance” which allows the MLO to re-issue a good faith estimate. In fact, the GFE must be reissued withing 3 business days of the locked loan and any interest rate dependent changes may be reflected on the revised GFE.
HUD’s RESPA FAQ 31:
…a loan originator may not require a borrower to sign consents to verify employment, income or deposits as a condition of issuing a GFE as such a requirement may inhibit borrowers from shopping for the best loan by leading borrowers to believe that they are committed to obtaining a loan from that loan originator.
If you have provided all the information stated above to complete an application, including a property address, your mortgage originator must either issue a good faith estimate within three business days or deny your application. If they do not, they are violating RESPA.
The Senate has passed an amendment to the Wall Street Reform bill that would ban loan originators from accepting compensation based on placing a consumer in a higher interest rate loan or a loan with less favorable terms. The amendment also requires lenders to underwrite loans to assure a homeowner’s ability to repay the loan.
As you can imagine, loan originators everywhere are outraged.
Imagine not being able to earn extra compensation for selling a higher rate loan! Imagine making sure that homeowners can repay their loans!
Wait a minute. Isn’t that the world we currently live in right now?
The horror we’re leaving behind if this amendment becomes law was the predatory lending frat parties of 2006. From what I can tell, most (not all) of that is behind us. What are we really losing with the passage of the Merkley-Klobuchar Amendment?
Mortgage brokers have to disclose all yield spread premium earned as fee income on line 1 of the new Good Faith Estimate. They will not be losing anything new. It can be argued that mortgage brokers should have lost the ability to earn yield spread premium because it was horribly misused not by “an unsavory few
I can’t find anyone who will stage just one vacant room. The rest of the house is fine, but the master bedroom is empty.
If anyone knows a stager who will stage a master bedroom in Kirkland/Bellevue, can you please have them give me a call at 206-910-1000 ASAP?
Thank you!
Besides the fact that we will most likely be heading into 2004 price levels shortly, we are also switching mls vendors.
For the general public, switching mls vendors may not be noticeable at all, but for me it is “The End of the World…as I know it.” because I will no longer have access to hand calculating statistics for King County or any large area like Zip Code.
The New Matrix system will work on any browser, so I can carry the mls around on an iPad…I’m happy about that. But I will have to devise an entirely different method of conveying market strength and weakness using the new system in smaller quantity analysis.
Maybe not the end of the world…but clearly the end of the world as I know it.
Opinion: The definition of what is a “loan and settlement cost” needs more clarity on NWMLS Form 22-A (revised 12/2009).
Background:
The most recent revision (December of 2009) of the Financing Addendum “Form 22-A
Is it just me, or do loan orginators routinely encourage bank fraud? First, the background: There are a variety of federal and state laws that make it a VERY serious crime to mislead a lender for purposes of getting a mortgage. At the federal level, 18 USC sec 1014 makes it a crime to “knowingly make any false statement or report . . . for the purpose of influencing in any way the action of” a commercial lender. (Emphasis added). The penalty? A cool million dollar fine and/or 30 years in federal prison. Yup, not a misprint: 30 years in Club Fed. On the state level, RCW 19.44.080 makes it a crime to “knowingly make any misstatement, misrepresentation, or omission during the mortgage lending process knowing that it may be relied on by a mortgage lender.” (Emphasis added). The penalty? Its a class B felony, so 10 years in the joint and/or $20 grand.
As indicated by these laws, as a society we cherish honesty to lenders and believe very strongly that anyone who is dishonest AT ALL in order to secure a loan has committed a very serious crime. The problem, of course, appears to be that nobody in the RE industry agrees. Rather, it appears that the RE industry treats this type of bank fraud (misleading a lender in order to facilitate getting a loan) to be something akin to taking a second serving of dessert: bad form, sure, but if nobody knows…
You may be thinking: “What on earth is Craig talking about? Everyone I know is honest and abides by the law!” Well, think further, and in particular think about a buyer’s inspection contingency response. The NWMLS provides a Form 35R specifically for resolution of the inspection contingency. By its terms, the 35R and any other notices or addenda relating to any modifications or repairs becomes a part of the contract, and of course the lender has the right to receive (and buyer has the obligation to provide to the lender) the entire contract.
How many agents out there have used the Form 35R to request repairs and/or price reductions? And have you gotten any feedback from the loan originator once he or she receives a copy of the signed form? I have. The 35R had the fourth box checked (buyer proposes modifications) and the text below, “Sale price reduced to $440k.” About as simple as can be — but apparently still likely to arouse the suspicions of the underwriters, thus complicating the process. The loan originator’s request? “Toss” the 35R and instead use a Form 34 for a simple price reduction.
The problem? That clearly violates the state law above, and probably the federal law too (at least it will when the buyer signs at escrow a statement indicating that he has provided the lender with all requested information, including a complete copy of the PSA). In other words, even LENDERS encourage violation of the laws designed entirely to protect lenders.
And one wonders how we inflated the housing bubble…..
So here we go again. Now that mortgage rates are headed up, the deceptive lead generation ads are crawling back onto the web. Here’s a great example from a Google ad:
FHA Refinance 4.0% Fixed
$160,000 FHA mortgage for $633/mo.
No SSN req.
Calculate payments now!
MortgageRefinance.LendGo.com
When clicking through, the lendgo.com lead generation site asks some simple questions like the value of my home, zip code, whether or not I’ve ever filed bankruptcy, etc. Then I’m asked to provide personal information and assured that I’m dealing with a secure website. Name address, phone number, etc. After I click “submit,” I’m told that I will be given four quotes. I clicked ‘submit’ after offering them the following:
First Name: Your Ad
Last Name: Violates TILA
But I don’t get a quote. Instead I’m asked even more questions before being told that four lenders will contact me within 24 hours: Quicken Loans, Onyx Mortgage, Americash Mortgage Bankers (I’m thinking it was a seven beer night when someone decided on that name), and….I’m totally surprised here: Paramount Equity Mortgage.
So, Quicken, Onyx, Americash, and PEM, Are you aware that the lead generation company you’re using is violating the Truth in Lending Act and probably a handful of state laws by advertising a note rate without conspicuously including APR in that ad?
I bet someone at these mortgage companies assumed that no one would be able to trace the deceptive ad back to them. Nah, their chief compliance officer couldn’t be that stupid. Oh wait, maybe they don’t have a chief compliance officer. Or perhaps these big mortgage companies are just making a strategic business decision: Violate TILA and some state laws and if we get caught, we’ll just pay the fine and move on because we’ll be able to earn six times the amount of the fine anyways.
Regulators: You’re being tossed under the bus in Washington D.C. this week as banker after banker stands before various congressional committees telling the world that the bank regulators were asleep at the wheel. I’m not going to throw you under the bus. Why? Because there never will be enough money to regulate every single mortgage lending transaction across your area of authority. You’ve got limited resources and regulators are always trying to balance everyone’s needs and are constantly being pulled in 10 different directions at once.
So I’d like to give the regulators a helping hand.
If mortgage companies are buying leads from a firm that’s using deceptive advertising, you can write out 5 consent orders and be very efficient with your time. Just start clicking on all the banner ads! It will be easy and mildly entertaining for your staff! At the same time, you’ll help consumers avoid getting sucked into doing business with a company that has chosen a business model of attracting consumers who are an easy mark.
They fell for the click through ad. They believed there was a 30 year fixed rate mortgage available under 4 percent! If they were stupid enough to fall for this, then that means perhaps the mortgage company can also win all kinds of other shell games with these folks, who probably believe there’s a diet pill that will help them lose those last 10 pounds and that the secret to prosperity and abundance is to think thoughtful thoughts.
Wait! Maybe that’s the secret to the housing market recovery: We can just use the power of abundant thinking to “think” away all those short sale, REOs, and re-defaulting loan mods! If anyone’s going to try this, let me know and I’ll calendar ahead to check back with you in 2014.
Here’s another google ad:
3.44% APR – Refinance Now
$200,000 Mortgage for $898/Month!
As Featured on CNNMoney & Forbes.
DeltaPrimeRefinance.com
Oh my goodness! This lead generation firm actually quoted APR! Which would be a cause for celebration, until you click through and see that they’re quoting a 5/1 ARM loan, and then they also inform us that this might be a 15 year amortization. Of course the APR looks awesome. Regulators, it would be interesting to find out exactly how many people, after filling out the online lead generation form, decided to select a traditional 30 year fixed rate loan instead of an ARM loan or a 15 year amortization. Classic bait and switch. Like shooting fish in a barrel.
These lead generation companies appear to hold a mortgage broker or lender licenses in various states, yet the consumer information is sold to other licensed brokers or lenders.
Question: Are mortgage brokers, lenders and banks responsible for making sure the leads they purchased are generated by advertisements that do not violate state and federal law? If the answer is no, then deceptive mortgage lending advertising will continue to grow as long as brokers, lenders and banks are able to skirt law by purchasing these leads.
To the loan originators who regularily purchase these leads: we need to send you to Tiger’s rehab center and wean you off the crack. Deceptive ads are poison to the system and they make it harder for you to procure clients using advertising methods that are transparent, ethical, and legal.
Maybe the broker/lender/banker willl say “We sign a contract and it’s the lead gen company’s responsibility to make sure the leads are generated according to state and federal law.” If I was a regulator (and sometimes I like to put on a dark blue suit and high heels and pretend I’m a regulator in the privacy of my own home) I might say, in response, “So what method do you use to be certain that the lead gen companies you deal with are advertising according to state and federal law?”
Quicken Loans, Onyx Mortgage, Americash Mortgage Bankers and Paramount Equity Mortgage, all a rational, thinking consumer has to do is google or bing your company name with the word “complaints” in the search box like I just did and they’d have all the info they need. But the rational, thinking consumer is not your target market.