The RE0/BPO model is horribly broken (for the bank & the Realtor)!

By
Real Estate Agent with Progressive Realty (Boise Idaho) www.Progressive-Realty.info DB-17066

 

 

I have read lots of posts on Active Rain and elsewhere about BPO’s and the REO market in general.  I started wondering what the fiduciary duty these companies have to their clients (the lending institution).  Do they have to disclose that they are charging:

  • fees to the Realtors to join their sites to have an “opportunity” to learn if there even are BPO’s in our area;
  • Fees to have access to state or local level data;
  • Fees to buy access to territories like cities or zip codes (with who knows how many other agents doing the same thing);
  • Training fees so we can be members of “their” proprietary systems;
  • If the third party BPO mill gets say $100.00 from X Lender, do they have to disclose that they only pay the Realtor $50 (or what ever fee)?

 Happy dollar face

Do they have to disclose that the Realtors have to pay the BPO company “Referral fees” for the listing if they ever assign one?

Shouldn’t the BPO company have to admit upfront the fee breakdown “before” they assign the original BPO? (For example, if they are going to charge a 30% referral fee and that the lender will only pay a total of X% commission)

 

I hope the lending institutions will soon realize that these practices by the third party REO companies and BPO mills greatly reduce the quality of agents that might otherwise be glad to help.  Realtors should not be chosen based on a "low bid" basis as if we were all equal as a commodity!

 

Submitted by:

Jim Paulson, CRS, GRI, EPRO, EcoBroker - Owner/Broker – Progressive Realty Corporation

http://www.Progressive-Realty.info

 

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Topic:
Mortgage / Finance
Groups:
Realtors®
REO
Certified Residential Specialists
REO REALTORS
Tags:
reo
bpo
broker price opinion
mortgage crisis
lending crisis
jim paulson
progressive realty corp
realtor business model

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Rainmaker
43,642
Mike Butson
The Davis Company - Austin, TX
Realtor & Sales Trainer

My opinion is, by the time they get it right, the REO train will have already passed. They all seem to walk with a dangerous swagger.

Oct 13, 2008 02:11 AM #1
Rainmaker
509,324
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

It would be nice if it worked this way, but I'm not sure that the lenders would really care.  The banks seem so overwhelmed & beaten down, from how I see the quality of service their getting from some agents, that having a reasonable fee scale is out of the question.  It seems so logical, but with so many asset managers just trying to keep their heads above water, I don't think they have the time to notice.

Oct 13, 2008 08:16 AM #2
Rainer
62,385
Janice Norvell
Long & Foster-south - Roanoke, VA

Have you read the terms and conditions carefully?  I sure do not want to sign up for this company.

Oct 13, 2008 10:23 AM #4
Rainmaker
299,380
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Janice,

I deleted the post that directed to the other website since it is really just a way to get people to sign up for stuff for a fee.  Smart marketing, but I don't want to be associated with the reason people got spammed.  You were smart to read the Terms and Conditions.  Guess what I should have done is reported it as spam instead.

Oct 13, 2008 02:43 PM #5
Rainer
16,276
Freddie Gonzales
WEM PACIFIC Investments, Inc. - Daly City, CA
CRS, GRI, RDCPro

IAS is a very professional company. They don't eblast their orders. They take care of you and orders and payment are regular like clockwork. I like working with them.

Nov 25, 2008 04:20 PM #6
Rainmaker
193,804
Mary Strang
Viroqua, WI

I have started to loose enthusiasm for most BPO and REO work, it is better to be the buyer agent lately, way too much work for the return.

Nov 26, 2008 12:02 AM #7
Rainmaker
82,027
Vanessa Calhoun
PalmerHouse Properties & Associates, LLC - Atlanta, GA
Your Greater Atlanta Marketing Guru!!

I agree with Freddie. I love working with IAS. They're awesome!

Nov 26, 2008 12:08 AM #8
Rainmaker
1,533,650
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Totally agree that something is going on behind the scenes.  The 3rd party companies charged the listing company on my last deal a 30% referral fee, managed to keep the title work even though they were not licensed in IL.  We had to close at another company just to get the job done (Chicago Title) even though they had nothing to do with title work. Very odd and confusing AND MANIPULATIVE!

Nov 26, 2008 12:17 AM #9
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Rainmaker
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Jim Paulson

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