Real estate industry not prepared for commission changes, analyst finds
National Mortgage News
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Real estate industry participants are not likely not ready for complying with buyer broker commission payment changes set to be enacted later this summer, a Keefe, Bruyette & Woods report warned. Commission practice changes are set to go into effect on Aug. 17. "Commentary from industry participants suggest a high degree of uncertainty around how the industry will digest these changes in such short order, including mandated buyer representation agreements and elimination of compensation offers in the MLS," Ryan Tomasello wrote in the latest KBW update on these series of cases. "We believe the industry is largely unprepared and overly optimistic in its consensus view that impacts will be limited."
Two mortgage brokerages are suing Equifax, claiming its presence in the electronic verification of income and employment business runs afoul of monopoly laws. The class action suit cites Equifax's continued acquisition of VOIE competitors and its revenue sharing with major employers who exclusively share data with the credit giant. Through the Equifax Workforce Solutions subsidiary, the company claims to have data on 126 million unique individuals. Competitors offering VOIE services and the Community Home Lenders of America have raised alarm in recent years over Equifax's massive scope. The provider, which signed agreements with nearly three dozen payroll processors in the past three years alone, charges $66.45 for individual verifications, up from under $20 a decade ago.?
The Consumer Financial Protection Bureau on Tuesday renewed warnings to lenders and servicers about "unlawful or unenforceable" contract terms, something it first attempted to address with a controversial proposal for a nonbank form registry last year. "Federal and state laws ban a host of coercive contract clauses that censor and restrict individual freedoms and rights. CFPB will take action against companies and individuals that deceptively slip these terms into their fine print," Director Rohit Chopra said in a press release. The CFPB's new circular warning that the bureau will enforce existing rules governing contracts follows a day after the bureau greenlighted a proposed registry aimed at tracking "repeat offenders" of consumer laws.
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The top five lenders in the ranking have a combined wholesale origination volume of more than $14 billion at the end of the first quarter of 2024. Most lenders saw a decrease in volume between Q4 2023 and Q1 2024, but one saw a substantial increase of 244.74% The data in this ranking was sourced from National Mortgage News' MortgageStats site, which pulls from quarterly call reports available from the Federal Financial Institutions Examination Council. Read on to see which bank lenders are in the top 20 and how they fared through the end of March 2024.
The Department of Housing and Urban Development last Friday instructed companies active in mortgage servicing to temporarily stop moving borrowers in its loan programs toward foreclosure in two regions with presidential disaster declarations. Distressed borrowers in parts of Maine and Nebraska are the latest to get short-term leniency on government loan payments due to a wave of severe April storms that HUD has been working to address. HUD ordered its typical 90-day foreclosure pause for designated disasters to Federal Housing Administration and Section 184 loans in specified regions last Friday.?
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VP / Sales Manager at Intercoastal Mortgage LLC NMLS ID # 190984
5 个月They said it would lower pricing by 3% and guess what… it will increase prices by 2% - 3%. Buyers agents won’t work for free, so expect to add 2% - 3% to the offer prices to pay the the buyers agent commission. We’re also going to see a large number of lawsuits come in. How may agents have saved buyers from making colossal mistakes on the terms of their contract? Two things are certain: prices will increase and attorneys are going to have many new clients.
Electro Mechanic Technician 2 at JLL Somerset, NJ
5 个月Besides all commissions were always negotiated. Nothing was set in stone.
Electro Mechanic Technician 2 at JLL Somerset, NJ
5 个月Our office has been going over the changes for a little while now.
Construction Services
5 个月This is another example of governmental authoritarian infulanceing corporate overreach and negative regulations affecting the freedom of free livelihood in entrepreneurs who have shared it for years Buyers,Sellers, Investors or Entrepreneurs . We are seeing the same problem with our government in the Real Estate industry . HUD and the President think more regulations at times of heartships builds homes besides a10k credit for 1st time buyers. Isn’t that the way we got in this mess . Let’s not forget our Secretary of Treasury he gets to stretch his legal jargon around global warming while keeping rates here while the government spends inflation toward our country. Take a good look at where we are today and where we were five years ago when America had a true democracy under Trump’s administration? It took one look at Trump to know that he will clean the swamp and deport immigrants who here illegally? Plus the Financial independence we shared while being a energy provider than a dependent on third world leaders?