Realtors® Win! No Banks In Real Estate!

Great news. This outcome is exaclty why I dont mind making contributions to RPAC.

Hi Nestor & Katerina!
WHOOPEEE! Need I say anything more?

Katerina, can you imagine the BIG banks trying to sell real estate to home buyers -- they don't work evenings, weekends or holidays -- don't answer their phone after 4pm -- don't return calls -- overcharge for services -- overspend on budget -- then want US taxpayers to bail them out when they don't manage their profits correctly!  No, thank you, I prefer independent and franchise brokerages, where more U.S. Citizens have the opportunity for entrepreneurship!

Good, I'm glad the banks are out of the picture forever. They can't run their own books and keep their clients best interest in mind, what makes you think they could do it during sale of the home.

What about BBQ Pork, is that still OK?

Katerina - We have followed this issue for some time now are are so very glad it was passed that banks cannot be in the real estate business, no matter what bill it was in!  Can you imagine the mess that banks could make of our business.  They are in so much trouble that I cannot imagine them trying to get into the real estate business!  I don't always agree with everything NAR does but on this one, they hit a home run!

Mary

Katerina, the price of liberty is eternal vigialance. So it is good for now, but it will probably raise it's ugly head again. I think we have all learned through this ordeal with Short Sales that they don't understand our industry.

Let's say it has passed for the sake of arguement.

Would you have worked for a bank?

Nope and I would not have either.

So who would have ?

Bottom feeding Realtors who sell one or two homes a year, or newly licensed Realtors. So ultimately the consumer would have been hurt by using inexperienced agents. There I said it.

I am not afraid to compete with Bank Realtors but glad this battle is over.........for now.

That is great news.  It has been on NAR's plate for some time. After watching what the lending institutions have done with these credit default swaps it is a very good thing.

This certainly is good news for both Realtors and consumers.  It would certainly be a conflict of interest if they had succeeded. I hope this sticks. Thank you for the update.

Katerina, I share your views on this proposal. This is probably one major good thing that came out of the current situation. 

Chiming in from the lenders perspective, I feel the same way about realtors posing as lenders.  A lending office in a realtors office, staffed by former realtors and having the realtor principal being the principal of the lending company is clearly a conflict of interest. 

I think I will increase my RPAC contributions! I deal with short sales and foreclosures, and I gotta tell you the lenders are doing a great disservice to their customers.  Currently only 5% of foreclosed homes actually close.  They (the lenders)  then go to auction, by the home back even though they may have someone giving them a good and fair bid.  They then re-list with an agent and pay for an appraisal, BPO, and list the property far below market value. 

This accomplishes 2 things, both negative.

1.  Spends needless dollars and countless hours of our time faxing and calling them...frustrating to all parties involved in the transaction.  It can take sometime 30-60 just to have it assigned to a negotiator in the loss mitigation department.  If you are the listing agent seldom can you speak with them about the listing price, or necessary price reductions.  Only until you receive an offer, put together a package (which is lengthily) and fax it to them.  Typically, they will convey they never received it, you then re fax etc...

2.  One is it Real Estate Owned (REO) or Corporately Owned, they list it for a quick sale, but they typically want it on the market as an active for at least 7 days before they will consider offers~Again frustrating to buyers and agents involved. 

I could only imagine what would happen if they became involved in Real Estate.

Eat moor chicken.

Back in 2000 I heard Roald Marth and Stefan Swanepoel give scenarios about how Bank of America would kill us with this. It was chilling then. The importance of those potential threats is also that they expose real problems with the real estate industry. We are still a very inefficient industry that is still changing. The bank threat might be over, but more challenges are still out there for us. Any bets that the banks will still be looking for a back door to real estate? 

I have thought that it was the worst idea ever since I heard that banks were trying to get their feet into the real estate side in addition to banking.  Such a wonderful thing that they are forever banned from ever doing so!!