READ THIS POST AND PASS IT ON PLEASE ! AN IMPORTANT POST

By
Real Estate Agent with AllMountainRealty.com

This may be one of the most important posts I write.  I recently refinanced. I used a company called Terrace Mortgage. They have offices in multiple states. My wife and I filled out the normal 25 or so pages of disclosures and forms advising us of everything under the sun. We locked our rate. We then had the Appraisal, which we paid for up front. Rates changed but we were fine because we locked. Then came the Bomb. Terrace Mortgage does not lend to Realtors. Let me say that again Terrace Mortgage does not lend to Realtors. Their exact wording in an email was;

"The primary borrower is self-employed as a broker/realtor. Terrace does not offer financing to borrowers in the mortgage/realestate industry."

I consider this a professional spitting on my profession. Add to it this was NEVER disclosed up front. They had my money. My rate would have gone up so I was stuck. We were able to get this mortgage though my wife's income. How would you feel if you were so blatantly discriminated against due to your profession? I was furious I consulted an attorney. Then I went to NAR. Surely this type of thing would outrage NAR ? Here is their response;

"Since REALTORS and mortgage lenders are not a protected class, there is little that can be done to protect against such discrimination.

What I might suggest to the agent who received this is to politely ask him whether he says redlining all REALTORS as a good way to grow his mortgage business?"

There is nothing polite about how I would like to respond. Franky I am disappointed by NAR's anemic response to one of its members not being able to get a loan due to discrimination based on their chosen profession.

Attorneys tell me it will cost 20,000 to fight this in court. I do not have that kind of money. The Atlanta board that governs lenders would love to get copies of everything. However due to cutbacks they do not have a consumer protection function any more. But they would be happy to keep my info on file.

So I ask you my peers, How would you feel? Realtors please step to the back of the financial bus.

Posted by

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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

On line at www.allmountainrealty.com Call at 706 579 1098

We sell Homes                                                    

 

Comments (10)

Bruce Parker
RE/MAX Best - Highland Park, NJ

Good post. That really stinks...... on the other hand I saw a statistic in Default Servicing magazine that said that in Florida there was a ranking of defaulting buyers by profession.

Real Estate Agents / Mortgage Reps were the number 1 profession to loose their homes.

Other States were similar.

Jul 06, 2011 04:03 AM
Christine Koch
eXp Realty - San Antonio, TX
Realtor - eXp Realty San Antonio TX

I am amazed at this! Does their business not rely on refferals from Realtors?  Posts like yours are why I love Activerain, I learn something new every day.

Jul 06, 2011 04:09 AM
Jennifer Manchester
Suburban Properties of Charlotte, LLC - Mint Hill, NC
GRI, ePRO, ASP - Broker/Home Stager

This is crazy.  You would think they would have known this and declined you upfront!

Jul 06, 2011 05:22 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

I have never heard of a company with this type of policy.  In this lending climate and with all of the other disclosures I am surprised that it wasn't disclosed before they collected fees.

Jul 06, 2011 12:27 PM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Charlie,

Talk about a kick in the teeth, wow! I've never heard of anything like this.

Rich

Jul 06, 2011 03:32 PM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

I've never heard of the company before.  That is definitely not a Fannie/Freddie/FHA policy either.  It must be a lender overlay that their company has.

In the past, I have seen restrictions for mortgage programs where the borrower is a real estate agent or a loan officer.  I can't recall the specifics though.

Jul 07, 2011 01:43 PM
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

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Jul 07, 2011 03:31 PM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

That is awful. Sorry to hear. In NYC lawful occupation was added as a protected class.

"The primary borrower is self-employed as a broker/realtor. Terrace does not offer financing to borrowers in the mortgage/realestate industry."

Borrowers in the mortgage/realestate industry are knowledgeable about mortgages. Sounds like Terrance Mortgage is scared of educated borrowers that might question fraudulent or dishonest practices.

Jul 09, 2011 12:28 PM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

Charlie, that's a real slap in the face. I guess you won't likely be steering business their way in the future.

Jul 10, 2011 05:02 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Charlie, HOW STUPID is that!     Do they get business from Realtors?    Maybe not now.    I think we ALL need to re-blog and get the word out.     I have never heard of that!

Jul 10, 2011 05:10 AM