What is the Law on Realtors Selling Real Estate and Doing Loans?

Can Your Realtor also be a Mortgage Broker, a Banker, a Lender?

I believe that this is Legal in Some States, I think the issue is mixed.. but who cares if it is legal for a Realtor to be a Mortgage Broker, Own Part of a Bank, Have Shares in the Bank.. whatever.. in the Real World of Real Estate, it is a VERY Bad IDEA to Use a Realtor that Has ANYTHING to do with Your Loan What so EVER.

No matter how you look at it this it is BAD for the Real Estate Consumer. Of course most componants to your real estate transaction are Bad for You the Real Estate Consumer. Find Your Own Lender and Don't Let your Realtor, Real Estate Agent have ANYTHING to do with it, Period.

Do Realtors Suggest a Lender to Use?

Of Course Not are you absurd? Ok - You know they do. Now it is all hush - hush of course and on the down low, they pretend to give you options but if you have ever been in that position you know that the Realtor really did, somehow push you in one particular direction of Lending - Mortgage Broker Choices. What do Real Estate Brokers - Agents Gain from Picking the Lender For You, I mean deliberatly leaning you to picking the one you "Really" want to use? Well it is not always money, yes kickback is nice.

And Yes Kickback CERTAINLY happens whether anyone admits it or not, and if I have seen it in my little world then kickbacks must CERTAINLY run rampant.

However, with what a Mortgage Broker stands to gain with those "trailing commissions" that last the life of the loan, they don't often give much of a kickback, yes I know I talk about kickbacks as a matter of fact and no I have NEVER received on - though I have heard of it and been told about it, anyway back to my story, the person getting this Illegal Kickback may think that the poor Mortgage Broker is ONLY making a point of two (which in the Real World of Real Estate Is a Percent of the Loan Value, which keep in mind quite often includes Sellers Contributions (Which would be another reason for Mortgage Brokers to Encourage Seller's Contribution - though a VERY bad idea) and this "loan amount" that the mortgage broker and the Realtor get commission on also may include personal property, seller paying the buyers mortgage costs, seller paying the title insurance or anything else that the seller "agrees" to pay as part of the real estate transaction.

Not only does this kind of stuff, such as the Sellers Contribution Get the Loan Amount Higher and Get Everybody More Commissions - it also creates false MLS data as we know, and it gets the loan to happen when a Buyer may not have previously qualified, EVERYBODY wins until down the road when the buyer loses the property. Oh well the Realtor gets to Sell it AGAIN and the Mortgage Broker just may get to lend on it again.

Anyway, back to my point, the person getting this illegal kick back thinks that the mortgage broker gets a small amount of money - especially if it is compared to what the Realtor gets in Real Estate Commission.

SO if it is a Realtor that is Recommending a Particular lender or mortgage broker the Reason maybe because they know they can get the lender or mortgage broker to get things done, and the faster the deal is closed the faster everbody gets paid. And as you know if you have ever been in this position it is NOT usually you, the Real Estate consumer that chooses the appraiser it is the Mortgage Broker or the Realtor, sometimes the "Appraiser" that the Realtor Chooses ( this is TRUE - One Hundred Percent) is NOT on the official list of "approved" appraisers for a particular bank, lender, or credit union - no Problem the Realtor works with the Lender and Gets them on It...

Some Sites Say that Realtor "pick partners" they can Trust. It is NOT really trust it is the ability to close the deal - which quite often Mortgage Brokers struggle with.

And some affiliation are PURELY financial for the "Relationship" - do your homework, NOT online for this one, if you Must USE a Mortgage BROKER and I recommend that YOU DO NOT - but instead go directly to the lender yourself - the further from the SOURCE you get the More you Pay for your loan and you don't just pay on closing you pay for the life of the loan.

So if the loan is a 30 year loan, well then, the mortgage broker may make money for the entire 30 years if you never were to refinance. So they want your business, and they want it bad. Anyway, if you Must Use the Mortgage Broker, your best bet is to ask around town, talk to people and get a feel for their integrity.

I use to think that it is good to use an "established" mortgage broker because the turnover is so high in the Mortgage Industry, however, I have met and witnessed first hand some "established" mortgage brokers that lead consumers on to the point of lowering their credit scores, forging sellers signatures, faxing deals to the title companies without signatures or legal descriptions, lying, and well just make it up as they go along - whatever it takes to close the deal and FOR the best amount of money for the Mortgage Broker. They will lead you on for months so that they get a BETTER loan Product - meaning the loan that pays them the most - who cares if it cost the real estate buyer more..

So Careful of Where you get your "money" it make come back to "bite you" and those who got you into the situation - Mortgage Brokers - Appraisers - Title Companies and REALTORS.. well they are Long Gone and You Won't Catch Them..