ReferralsIn real estate, we all get and give referrals.  It is part of our business model.  We refer our customers to REALTORS out of county, state and U.S. But I have come across an interesting type of referral, it is called the “under the table kickback referral deal“.  This involves title companies, mortgage brokers and inspection companies.  Many of these companies pay a brokerage or an agent a “Referral fee” to promote their business and/or speak to their agents, so in turn the agents promote these companies to their clients without disclosure.  The CFPB, better known as the Consumer Financial Protection CFPBBureau, is beginning to prosecute these real estate companies, for non-disclosure and prosecute the title and mortgage companies for evading the law and hurting the home buying public.

I’ve read several articles about this…many brokerages were asking title and mortgage companies for outrageous fees to promote their services to their clients, some I have heard of are asking  up to $15K a month! These “Referral fees” are costing the Buyers much higher fees at closing.  Amazing isn’t it, I must be totally ignorant as I would never have thought of this.

Until Next Monday…

Matey sig

This entry was posted in 2015 President Elect, 2016 President, CFPB, Conversations, Ethics, Hot Topic, Professionalism and tagged , , , , , , , . Bookmark the permalink.

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