Real estate, mortgage and web-based veteran. Consultancies in all three areas, member of Advisory Councils on start-up web based real estate and mortgage ventures.
Well, well, well. Glen you may be able to snow CBS and the 60 Minutes yahoos (maybe they'll do another piece on the "new" model)but you can't fool the industry. Despite all the hype and rhetoric the "new" model is not working and resorting to a referral fee model will not take the industry to the promised "next phase" of the business; it will just keep the company afloat a little longer. Most of the larger brokers in the country have managed to launch their own sites with impressive usage of technology and sales expertise that provide what the customers are looking for - unbiased information, no-strings-attached help and good service. These brokers have realized, to steal a phrase: "that it's the customer, stupid". Promising full referral fee to the customer if they are unhappy reminds me of the company selling lots here in NC who promise that they'll refund the difference in value if the lots they are selling appraise lower in two years than the buyer pays now. Are they getting takers for this deal? What's in the fine print? Will they be around? Who decides conditions under which they get the refund? In my experience customers are not looking for money back for bad service. They are looking for reputable experienced agents and companies that have a history of providing good customer service and therefore good value for their money if they are sellers or a successful, hassle-free transaction if they are buyers.
Gold - Condo Domain Silver - Obeo Bronze - Roost
Seller assistance prohibition by FHA: For years one of the main underwriting concepts of the FHA was that of "motivation to pay". As there was little motivation due to the low down-payment requirements, the motivation was purely the homeowners desire to repay and the fact that they had invested some hard-earned savings into paying the costs of the closing and whatever down-payment they could make. FHA was a geat program but fell apart due to their excessive property certification process placing undeue burdens on sellers and causing multiple "chains of closings" to collapse. Then PMI became available and the FHA programs declined in usage. This was followed by the 90/10/10 programs for those who did not wish to put their cash into a home nor pay for insurance. Therefore, in light of the unprecedented decline in home values it only makes sense to do away with the no-downpayment programs, the "liars" mortgages and seller/builder assisted financing. If FNMA and FHLMC had listened to the nay-sayers years ago they would not have ended up allowing lenders and mortgage brokers to make a fortune off dubious programs that have now gone awfully bad. Responsible lending is the one of the only things that will eventually get us through the housing and credit mess and a solid credit underwriting process will be one of the key foundations of a housing value recovery.
