Posted on 05/03/2009 7:23:31 AM PDT by narses
David Stevens, the administration's pick for an assistant secretary for the Department of Housing and Urban Development failed to pass muster and his confirmation delayed as it was disclosed that the real estate brokerage he operates as chief is facing several class action lawsuits.
The charges against Long & Foster, a Virginia real estate brokerage, allege that their agents steered homebuyers to affiliated mortgage and title companies, which then shared their profits with the real estate brokerage.
We often advise our readers to contact a Realtor as their best source of information. Regularly we Realtors are asked for referrals to title companies, lenders, insurance agents, inspectors, appraisers, painters, plumbers, mechanics, electricians, concrete finishers, framers, roofers, carpet layers, tile setters, etc., etc.
Most Realtors who have been around awhile are aware of professionals in many areas of specialty and so we are glad to refer you to folks we know will protect our reputation by providing the service you need at a fair price. The problem as we have seen this week on a national level is when Realtors accept gratuities or profit from the providers of those services.
Under the Real Estate Settlement Procedures Act (RESPA), Realtors are prohibited from receiving kickbacks or rebates for directing any transaction to any individual for financing. Further, we are restricted from receiving any compensation with regard to a transaction without disclosing to both buyer and seller in writing that we are being paid.
Likewise, we are prohibited from paying any person not licensed in real estate for referrals. Referral fees are customarily paid to licensed colleagues outside our area who refer clients to us that they may have a relationship with but cannot serve here. Those referral fees are usually a percentage of the commission earned by the agent who represents that buyer or seller and are paid directly to the referring agent's broker.
Unlike some industries who traditionally pay citizens for referrals we are strictly regulated by our states and the federal government in our activities. Members of the Association of Realtors are also regulated by the Realtor Code of Ethics. Although most of us are not at risk of losing a government appointment, violation of these rules means that we may lose our ability to earn income. You can be reasonably certain that we have nothing to gain financially by our recommendations, but we give them because you ask and because we want to help you. Remember, when it comes to title companies and financial institutions it is always your choice. If you feel you have been directed to a specific provider to benefit the Realtor, you may have grounds for a grievance. As with any unsatisfactory experience with an agent, your first call should be to their broker. If the broker is unable to provide you satisfaction, contact the Association of Realtors and you will be given guidance through the grievance process. We are a self policing association and we are here to support our membership and protect our community. Visit www.cdarealtors.com to search the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is the spokesman for the Coeur d'Alene Association of Realtors. Kim and the Association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664 with your questions or commentary.
I don’t understand, people knew this when he promised CHANGE>
Most corrupt administration ever.
Pray for America and Our Troops
David Stevens, the administration's pick for an assistant secretary for the Department of Housing and Urban Development failed to pass muster and his confirmation delayed as it was disclosed that the real estate brokerage he operates as chief is facing several class action lawsuits. The charges against Long & Foster, a Virginia real estate brokerage, allege that their agents steered homebuyers to affiliated mortgage and title companies, which then shared their profits with the real estate brokerage.Never heard of pay to play?
another for the list
Wrong and illegal!! Same as giving a kick back to a buyer, lying to a seller about value and buying the property your self. etc. etc.
ROFLOL, one of the groups that lobbied hard for no down payment no credit check loans.
VA rarely enforces Realty Law. Speculation, for instance, is out of control here. Realtors go to in to homes of little old ladies and offer to buy many acres for ridiculously low sums, then promptly resell them for market value.
Thanks to stainlessbanner for the headsup.
The List, ping
I’ve been buying and selling real estate since the day I reached the legal age, and I can tell you, it’s the crookedest game of all. Most agents, brokers, lenders, mortgage brokers, etc., will do whatever they can get away with, and that’s a lot. You can make a fortune in real estate with no brain at all; or very little brain, if you have moral standards to uphold.
Has he appointed anyone who WASN’T a criminal?
If you see a property offered for sale by Blidouga Realty, don’t even call them about it! Go find your own realtor, say, Schmudki Realty. Blidouga works for the seller, and does not have your best interests at heart. Mr. Blidouga wants to get as much money for the seller and himself as possible. Get your own guy, and let them split the commission!
Well, unlike Clinton, Obama never actually claimed to make the most ethical administration ever.
Much easier to keep ambitious underlings in line when they know from the get go the man has the goods on them.
If you know of such a case (other than anecdotal, without evidence) please report it to the state real estate commission, the local board of Realtors, and the county prosecutor. Name the names and state the evidnce. We Realtors want the crooks OUT of our business and preferrably in JAIL!
Another O appointee:
Alejandro Mayorkas picked to head immigration agency
May 1, 2009
[snips]
A former top Los Angeles federal prosecutor who was involved in a Clinton-era clemency controversy has been tapped to head an influential Department of Homeland Security immigration agency.
Alejandro Mayorkas is President Obama’s pick to be director of U.S. Citizenship and Immigration Services, which adjudicates a broad range of immigration and naturalization issues and oversees international adoptions, asylum, refugee status and foreign student authorization.
‘Alejandro’s expertise covers a wide array of issues critical to the department, including law enforcement, civil rights, computer crime and international money laundering,’ Homeland Security Secretary Janet Napolitano said in a statement Thursday.
Born in Cuba, Mayorkas was the U.S. attorney for the Central District of California from 1998 to 2001.
Mayorkas also was one of several prominent Southern California political figures who played a role in a 2001 decision by President Clinton to commute a drug dealer’s prison sentence.
http://www.latimes.com/news/nationworld/nation/la-na-mayorkas1-2009may01,0,2053675.story
As a 30+ year real estate broker, and one who taught real estate law, practice, finance, and econ at the college level, this is disgusting. If a company gives a broker a monetary benefit, i.e. kickback, that is money that should have been saved by the client. The fiduciary duty is to the client —— not to yourself.
I do and I have and they are still very much in business because they are laundering land through their family members.
Sad but true. The big hitters in our local town are usually very devious with their pocket listings, low balling sellers, buying prime deals to redevelop for themselves, etc. The people trying to do the business ethically usually struggle making it.
I am not in the industry but I have heard all the stories and from other agents and people trying to buy or sell a home.
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