Another view of the mortgage mess

[smilin]

Here is a pretty good idea of the reality of what the driving force was: Greed.

What’s Really Going on in the Lending Industry | RISMedia

[toppick08 (Premo)]

Oh yes.....the seven deadly sins just won't go away.

[smilin]

Originally Posted by Patch Tuesday

Based on that article, would the average real estate agent (that knew something screwy was going on) walk away from a fraudulent transaction, or play dumb and collect their commission?

Good question.
Legally, as a special agent (legal term) you have to do what your client tells you to do. Your allegiance is to them only.
If your client told you in no uncertain terms that they wanted to buy a house and they didn't care about the terms just as long as they could afford it, then you would have to do what they tell you to do.
If you told someone it was NOT in their best interest (and documented it) and you couldn't represent them, they would go to the next agent and buy the home anyway.
You decide what you would do.
However, if you know there is a fraudulent transaction going on, you must tell your broker who will then inform the DLLR and States Attorney who will then do an investigation.
If it's not legal - it's not legal.

[somdrenter]

Originally Posted by smilin

However, if you know there is a fraudulent transaction going on, you must tell your broker who will then inform the DLLR and States Attorney who will then do an investigation.
If it's not legal - it's not legal.

So, you must tell your broker........how about the client?

[refi-rep]

Originally Posted by smilin

Good question.
Legally, as a special agent (legal term) you have to do what your client tells you to do. Your allegiance is to them only.
If your client told you in no uncertain terms that they wanted to buy a house and they didn't care about the terms just as long as they could afford it, then you would have to do what they tell you to do.
If you told someone it was NOT in their best interest (and documented it) and you couldn't represent them, they would go to the next agent and buy the home anyway.

Exactly!

If your client told you in no uncertain terms that they wanted to buy a house and they didn't care about the terms just as long as they could afford it, then you would have to do what they tell you to do. <----You d be surprised how many times people tell you that.

[smilin]

Originally Posted by Patch Tuesday

Smilin's whole answer is laughable as usual. Brokers almost always get a cut of whatever the agent does. IE, typical transaction is split 4 ways, listing agent and listing agent's broker, selling agent, and selling agent's broker. Even if it's not a true way cut, you can rest assured there's a broker or office owner getting paid for anything one of their agents does...

So to say you "have to report something to your broker" is a joke. The broker would be in on it, or negligent for not watching the transactions of their sponsored agents...

Stay out of the Real Estate biz, Patchie. You wouldn't cut it.
How does anyone get a cut of anything if they aren't paid?
Let's get this straight:
A client comes to you with a fraudulent or illegal transaction, what are you supposed to do?
As any legal person will tell you, you have to report it to your BROKER.
Why? Look it up, I'm tired of seeing your asinine responses.
Your Broker, who is the agent of record on any transaction, is therefore legally bound to report it to the proper authorities. There are State and Federal penalties for fraudulent transactions not to mention mishandled ones.
If the agent and broker are in collusion, then obviously they won't be telling you or anybody else (Duh?).

If you see anything that detracts from your customer achieving a satisfactory
settlement, you are legally bound to your customer and must tell them.
The law doesn't change no matter how much Patchy spreads disinformation. You have a problem ?
For God's sake don't call Patchy.

Here is who cuts through most of this BS.

Department of Labor, Licensing and Regulation
Welcome to the Maryland Department of Labor, Licensing and Regulation
or
Real Estate Commission
(410) 230-6230

[somdrenter]

Originally Posted by smilin

Patchy spreads disinformation. You have a problem ?
For God's sake don't call Patchy.

That’s interesting given that locally, the only person to have alerted the public about local fraud, doctoring of the MLS, and has been published in a national news source has not been a realtor, broker, or anyone in the REI.

[teambenya]

Originally Posted by somdrenter

That’s interesting given that locally, the only person to have alerted the public about local fraud, doctoring of the MLS, and has been published in a national news source has not been a realtor, broker, or anyone in the REI.

I've been very vocal about some of the local fraud cases that have been happening lately! One of Patch's links is to some of the commentary and information that has been made regarding MDH and MMS.

Patch however, has been able to bring some of the more unsavory news topics regarding poor business practices to the limelight however, and it's great that SOMEONE is doing so.

Bear in mind that a Realtor/Broker is hesitant to level accusations against another professional because of the potential backlash from NAR/MAR/SMAR. The risk of defamation charges and possibly losing our license (and livelihood) over making accusatory statements is not worth it. In the end it's for the courts to decide, and agents/brokers don't want the risk of losing their job because they may have leveled some sort of false accusations.

[somdrenter]

Originally Posted by teambenya

Patch however, has been able to bring some of the more unsavory news topics regarding poor business practices to the limelight however, and it's great that SOMEONE is doing so.

Bear in mind that a Realtor/Broker is hesitant to level accusations against another professional because of the potential backlash from NAR/MAR/SMAR. The risk of defamation charges and possibly losing our license (and livelihood) over making accusatory statements is not worth it. In the end it's for the courts to decide, and agents/brokers don't want the risk of losing their job because they may have leveled some sort of false accusations.

I commend you on your blog, and it shows that at least someone in the REI is getting some sort of word out.

Have no doubts, I do realize the ramifications of those in the REI coming forth with certain inside information. Even Patch has felt the “wrath” of at least one county administrator and of course that would go double if a realtor were to ever come forward.

Of course there would be backlash. And that’s the crux. Here we have these “professionals”, that “are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.” that foster an air of insecurity with their goon squad tactics. So all of you others in the REI, forgive me if I don’t buy into your party line, cockamamie BS. Unfortunately for those like teambenya, it’s getting to the point where public information is readily available, and the only reason someone would use a realtor, is to open the lock box.

[teambenya]

Originally Posted by somdrenter

I commend you on your blog, and it shows that at least someone in the REI is getting some sort of word out.

Have no doubts, I do realize the ramifications of those in the REI coming forth with certain inside information. Even Patch has felt the “wrath” of at least one county administrator and of course that would go double if a realtor were to ever come forward.

Of course there would be backlash. And that’s the crux. Here we have these “professionals”, that “are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.” that foster an air of insecurity with their goon squad tactics. So all of you others in the REI, forgive me if I don’t buy into your party line, cockamamie BS. Unfortunately for those like teambenya, it’s getting to the point where public information is readily available, and the only reason someone would use a realtor, is to open the lock box.

Aw, shucks.....

In all seriousness though, the real estate market is changing rapidly though, and the role of the agent has to change along with it. There are companies out there now that have realtors that will write your contract, and in some cases won't even show a home to their buyers because they discount their services so heavily. For some people, that's all they need out of an agent. There are and always will be people that want/need/expect more and that is where people like myself come into play. I am not the agent that will list your house for $500, but my team is able to offer a lot more than most other realtors.

People will pay for good service, but it has to be just that. Good service. I think that includes honest assessments of the market, which I'm expected to know and understand. I'm not going to pull any punches with consumers, and I like to hope that people understand that they are getting value when working with people like myself because they know they aren't getting misled or lied to.

What kills me is that a lot of the agents I work with are absolutely phenomenal! The minority of poor agents ruin the reputations of the good ones, imho.