While the real estate market is definitely improving, it is still not the crazy market of a couple years ago. The slower pace seems to have created some new issues, at least for me. I am involved in a new home community in which a mortgage broker has very persistantly persued us to send mortgages his/her way. He/she has offered at least one of the builders a kickback of up to 1% of the loan amount. I know many of you are thinking the same thing I was....how can he/she afford to give that much back when most mortgage brokers are lucky to make 2%? The answer to this question is what really makes my blood boil!!!!! Apparantly this person is raising the buyers' interest rates to cover this kickback. I don't see how some of these people can sleep at night!!!! We have not been responsive to his/her pleas to send mortgages his/her way, so now the builder is also applying pressure. All I have to say is both the builder and the mortgage broker can apply all the pressure they want. I will lose the business before I will partake in anything of the sort!
I am writing this post for two reasons. I encourage all of you to be extremely suspicious if your client has an unusual interest in who the buyers use for their financing. I also have several lenders that I certainly prefer to work with, but it is not because I am receiving a kickback. I send referrals to people that I know do a great job, treat my clients ethically and professionally, and are knowledgable enough to help make the whole experience a pleasant one. Secondly, I would love to hear everyone's feedback as to if you have ever had this experience and how you handled it.
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