AGENTS SHOULD NOT SHARE FEES WITH HUD APPROVED COUNSELING AGENCIES
Some agents have worked hard to assist short sale sellers only to find that if they referred the clients to HUD approved housing counseling agencies, the agencies asked for a portion of the real estate commission. This has created a financial hardship for agents since these transactions consume a lot of time and effort. It appears that HUD is stopping that practice. The following notice was distributed by the Maryland Association of REALTORS today.
Tuesday, March 24, 2009
According to HUD, fee splits to defray counseling costs may violate the Real Estate Settlement Procedures Act (RESPA). All HUD-approved housing counseling agencies, their affiliates, and branches were ordered to stop the practice immediately. The warning came in response to reports that some housing counseling agencies were receiving a share of real estate broker or agent commissions on short sales to pay for clients' foreclosure counseling sessions. Call: Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Kenneth Trepeta 202-383-1294 for more information