Comments on: Beware: "Affiliated Business" or Illegal Kickbacks? http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html Tue, 02 Mar 2010 02:11:05 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: FranklyRealty.com Trust Me I’m A REALTOR » L&F CEO Emails Agents Not Using Partners. Too far? http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-3383 FranklyRealty.com Trust Me I’m A REALTOR » L&F CEO Emails Agents Not Using Partners. Too far? Sun, 31 May 2009 04:37:56 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-3383 [...] (wow that really is a word!), I wrote about this topic months ago with my “Affiliated Business” or Illegal Kickbacks? [...] [...] (wow that really is a word!), I wrote about this topic months ago with my “Affiliated Business” or Illegal Kickbacks? [...]

]]> By: Houston search engine optimization http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1967 Houston search engine optimization Thu, 14 May 2009 06:55:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1967 Hi Frank, I have just come across this blog, This is really help to solved out queries about Affiliated Business. Blog is really informative and entertaining same time. Hi Frank, I have just come across this blog, This is really help to solved out queries about Affiliated Business. Blog is really informative and entertaining same time.

]]> By: Frank http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1945 Frank Sat, 12 Jul 2008 04:16:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1945 You all see that MSNBC picked up this post: http://redtape.msnbc.com/2008/07/traditionally-b.html<br/>or<br/>redtape.msnbc.com You all see that MSNBC picked up this post: http://redtape.msnbc.com/2008/07/traditionally-b.html
or
redtape.msnbc.com

]]> By: Anonymous http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1944 Anonymous Thu, 19 Jun 2008 12:51:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1944 I work in an office that has AB associated with us, but I always thought it was for the convenience of the client. I never recommend these vendors even when a client asks for a recommendation. I have never received a "kickback" from these vendors, but I do not doubt that the broker manager or owner might be getting something, as it is true they encourage their newer agents to use them. It's too bad that your generalizations make even honest industry people look bad. If you spent more time reflecting on positive energy, your business would be better. I work in an office that has AB associated with us, but I always thought it was for the convenience of the client. I never recommend these vendors even when a client asks for a recommendation. I have never received a “kickback” from these vendors, but I do not doubt that the broker manager or owner might be getting something, as it is true they encourage their newer agents to use them. It’s too bad that your generalizations make even honest industry people look bad. If you spent more time reflecting on positive energy, your business would be better.

]]> By: Anonymous http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1966 Anonymous Sun, 16 Mar 2008 05:04:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1966 Ok , here is my story. I am a Realtor from a large State. One of the biggest firms here(owned, ultimatly, by Warren Buffet) has ABA with a lender and a title company. The lender is in every office. The company managers actually train their new agents that they only have to give their clients one name, the name of their affiliate of course. Now, if you have a contract, when it comes across the desk of the manager and it does not have this lender on the contract,you are read the riot act. It is definately a hostile enviroment for anyone who does not use their lender. There are two kickers to this story, kicker #1. The manager gets a yearly bonus, part of that bonus is based upon them getting their office to have a minimum percentage using this lender. Kicker #2. These agents were steering their clients, mostly fist time buyers to this lender,and they would be put in sub-prime loans rather than a conventional loan. Now this particular lender did not have a conventional program for these particular clients that fell into a particular category( I am guessing hundred if not thousands city wide) Yet a lender down the street, did. Now, the agents knew fine well that the lender down the street had a better program, but because of the hostile enviroment(most of these agents were new a were taken advantage of)they did nothing. This is a company that sold over 10 billion worth of property last year. It disgusts me and I believe is a significant part of the sub-prime mess. As agents we have a fiduciary responsibility to our clients...Sad Ok , here is my story. I am a Realtor from a large State. One of the biggest firms here(owned, ultimatly, by Warren Buffet) has ABA with a lender and a title company. The lender is in every office. The company managers actually train their new agents that they only have to give their clients one name, the name of their affiliate of course. Now, if you have a contract, when it comes across the desk of the manager and it does not have this lender on the contract,you are read the riot act. It is definately a hostile enviroment for anyone who does not use their lender. There are two kickers to this story, kicker #1. The manager gets a yearly bonus, part of that bonus is based upon them getting their office to have a minimum percentage using this lender. Kicker #2. These agents were steering their clients, mostly fist time buyers to this lender,and they would be put in sub-prime loans rather than a conventional loan. Now this particular lender did not have a conventional program for these particular clients that fell into a particular category( I am guessing hundred if not thousands city wide) Yet a lender down the street, did. Now, the agents knew fine well that the lender down the street had a better program, but because of the hostile enviroment(most of these agents were new a were taken advantage of)they did nothing. This is a company that sold over 10 billion worth of property last year. It disgusts me and I believe is a significant part of the sub-prime mess. As agents we have a fiduciary responsibility to our clients…Sad

]]> By: dougmiller http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1965 dougmiller Wed, 28 Feb 2007 16:31:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1965 Realtor ABA's are about to be challenged on an entire new front. Imagine a class action lawsuit that doesn't allege RESPA violations, but instead calls RESPA a minimum standard. Imagine a lawsuit against a large real estate firm for breaching their fiduciary duty to their clients by training and selling agents on their ancillary services. That case just got filed last week in Minnesota against Coldwell Banker Burnet Realty. And its about time. Fiduciaries are not supposed to sell to their clients, they are supposed to advise them. If anyone wants a copy of the case, e-mail be at dougmiller@title-1.com <br/>Realtors, as fiduciaries, have a much a higher standard. Do you want to be held to the same standard as a car salesman or a toll booth operator? Fiduciaries have very special, almost sacred relationships with their clients. RESPA was designed to be a minimum standard for everyone. Realtors are much different. I've been saying this for years. I own an independent title company in Minnesota - this is where controlled business all started. Its also where undisclosed dual agency came from... Minnesota now has the highest closing costs in the Nation. Do you think it has anything to do with the fact that we have more ABA's than anyone else? I think so. My competitors are no longer other title companies - my competition has become Realtors who know nothing about title insurance. Realtor ABA’s are about to be challenged on an entire new front. Imagine a class action lawsuit that doesn’t allege RESPA violations, but instead calls RESPA a minimum standard. Imagine a lawsuit against a large real estate firm for breaching their fiduciary duty to their clients by training and selling agents on their ancillary services. That case just got filed last week in Minnesota against Coldwell Banker Burnet Realty. And its about time. Fiduciaries are not supposed to sell to their clients, they are supposed to advise them. If anyone wants a copy of the case, e-mail be at dougmiller@title-1.com
Realtors, as fiduciaries, have a much a higher standard. Do you want to be held to the same standard as a car salesman or a toll booth operator? Fiduciaries have very special, almost sacred relationships with their clients. RESPA was designed to be a minimum standard for everyone. Realtors are much different. I’ve been saying this for years. I own an independent title company in Minnesota – this is where controlled business all started. Its also where undisclosed dual agency came from… Minnesota now has the highest closing costs in the Nation. Do you think it has anything to do with the fact that we have more ABA’s than anyone else? I think so. My competitors are no longer other title companies – my competition has become Realtors who know nothing about title insurance.

]]> By: Anonymous http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1964 Anonymous Fri, 09 Feb 2007 16:41:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1964 <b>I have no proof, but I feel a subtle pressure from my current realtor to go along with the program and use his lenders, his title companies, </b> and pay a higher price for property than I should have too, being steered to properties that I'm not that interested in, and he seems to have an aversion to new condo projects in Arlington for some reason (says they are a rip off) etc. etc. I am only a single woman and feel like I am <b>getting fed to the vultures out there. </b> I would like to work with someone who is helpful, ethical and not greedy. I have no proof, but I feel a subtle pressure from my current realtor to go along with the program and use his lenders, his title companies, and pay a higher price for property than I should have too, being steered to properties that I’m not that interested in, and he seems to have an aversion to new condo projects in Arlington for some reason (says they are a rip off) etc. etc. I am only a single woman and feel like I am getting fed to the vultures out there. I would like to work with someone who is helpful, ethical and not greedy.

]]> By: Diane Cipa, The Closing Specialists® http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1963 Diane Cipa, The Closing Specialists® Tue, 06 Feb 2007 00:39:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1963 We have a serious CONFLICT OF INTEREST dynamic underlying many transactions due to the rise of ABAs, legal and illegal. The compulsion to disregard underwriting guidelines, standards, and ethics in fear of retribution and loss of referrals has contributed to high delinquency rates, foreclosures, fraud, and predatory lending more than any single other factor. We have a serious CONFLICT OF INTEREST dynamic underlying many transactions due to the rise of ABAs, legal and illegal. The compulsion to disregard underwriting guidelines, standards, and ethics in fear of retribution and loss of referrals has contributed to high delinquency rates, foreclosures, fraud, and predatory lending more than any single other factor.

]]> By: FRANK LL0SA Broker http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1962 FRANK LL0SA Broker Fri, 02 Feb 2007 00:03:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1962 <b>Dear inSTYLE</b><br />Brilliant question. I will make that my next blog. It is a crap fee. I'll explain what your options are. Make sure you sign up for the Feedblitz service for a spam free summary of new blogs. Also read why Most Listing agents SUCK (another blog)<br /><br />Frank Dear inSTYLE
Brilliant question. I will make that my next blog. It is a crap fee. I’ll explain what your options are. Make sure you sign up for the Feedblitz service for a spam free summary of new blogs. Also read why Most Listing agents SUCK (another blog)

Frank

]]> By: inSTYLE http://blog.franklyrealty.com/2007/01/beware-of-affiliated-businesses.html/comment-page-1#comment-1961 inSTYLE Thu, 01 Feb 2007 21:51:00 +0000 http://franktempblog.wordpress.com/2007/01/30/beware-affiliated-business-or-illegal-kickbacks/#comment-1961 My listing agent is taking commission plus a $395 adminitrative fee. What is the adminitrative fee all about? My listing agent is taking commission plus a $395 adminitrative fee. What is the adminitrative fee all about?

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