{"id":1964,"date":"2007-09-23T20:17:15","date_gmt":"2007-09-24T03:17:15","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1964"},"modified":"2007-09-23T20:17:15","modified_gmt":"2007-09-24T03:17:15","slug":"can-the-nar-improve-a-buyers-financing-experience","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1964\/can-the-nar-improve-a-buyers-financing-experience\/","title":{"rendered":"Can the NAR Improve a Buyer’s Financing Experience?"},"content":{"rendered":"

Realtors have to stop complaining about the sorry status of the lending industry.<\/p>\n

Why?<\/p>\n

They have the power to make a difference but refuse to take action. I have often heard the Realtors’ cry for licensing of loan originators and a plea for lending advisers to adopt a fiduciary capacity when originating a mortgage loan. Steve Berg makes an excellent case on The San Diego Home Blog for abolishing dual capacity, licensing originators, and establishing a fiduciary capacity for loan originators.<\/a> The problem? Realtors are waiting for the lending industry to do this. That just ain’t gonna happen.<\/p>\n

Realtors assume a fiduciary capacity for buyers. With that capacity comes a responsibility to assure that the buyers is getting good loan advice. The challenge? It’s the money, stupid!<\/p>\n

How can the NAR really protect the consumer from unscrupulous loan originators? Adopt a standard which closely aligns itself with what the NAR membership wants. NAR membership wants to deal with licensed originators. NAR membership wants an independent fiduciary duty imposed upon originators.<\/p>\n

Here are three ways Realtors can adopt to truly align their buyers with the originators they want:<\/strong><\/p>\n

1- Stop referring loans to originators at federally chartered banks.<\/strong> These banks are exempt from licensing and are limited in their product selection. The only way a fiduciary relationship can be established for your buyer is to refer him\/her to an independent mortgage broker who is able to shop ALL of the big banks and smaller mortgage companies.<\/p>\n

2- Insist on loan commitments from originators who are<\/strong> General Mortgage Associates of the of the National Association of Mortgage Brokers<\/a>. To date, this is the only national organization that has stated that its membership must act in a fiduciary capacity to the borrower. In practice, the NAMB doesn’t give a damn but at least they state that they do.<\/p>\n

3- Prohibit the membership from originating loans.<\/strong> That means that all affiliated business arrangements and common ownership of lending institutions and brokerages must be terminated. It further means that splits for individual Realtors (from employing brokers) will Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Realtors have to stop complaining about the sorry status of the lending industry. Why? They have the power to make a difference but refuse to take action. I have often heard the Realtors’ cry for licensing of loan originators and a plea for lending advisers to adopt a fiduciary capacity when originating a mortgage loan. […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5,30],"tags":[],"class_list":{"0":"post-1964","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","8":"category-supplanting-the-nar","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7867,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7867\/california-proposes-to-regulate-realtors-alongside-pawn-shops-and-lenders-and-banksoh-my\/","url_meta":{"origin":1964,"position":0},"title":"California Proposes to Regulate REALTORS Alongside Pawn Shops, and Lenders, and Banks…Oh MY!","author":"Brian Brady","date":"April 14, 2009","format":false,"excerpt":"Assemblyman Pedro Nava sponsored a bill (CA-AB33) to reorganize our state's financial services' regulators to be under one umbrella, the newly created Department of Financial Services.\u00a0 The idea is to save a bunch of money for the State. Of course, CAR is going nuts.\u00a0 Amy Steele reports via ActiveRain.com: AB\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3185,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3185\/whos-a-mortgage-fiduciary\/","url_meta":{"origin":1964,"position":1},"title":"Who’s a Mortgage Fiduciary?","author":"Brian Brady","date":"May 31, 2008","format":false,"excerpt":"Are you ready for the next big argument about fiduciary capacity? It's coming in the form of national loan originator licensing and it promises to be a doozy. The Federal Housing Finance and Regulatory Reform Act of 2008 is proposed legislation that seeks to license anyone who quotes rates or\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3015,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3015\/realtors-are-important-to-an-originators-successsort-of\/","url_meta":{"origin":1964,"position":2},"title":"REALTORS are Important To An Originator’s Success…Sort Of.","author":"Brian Brady","date":"April 25, 2008","format":false,"excerpt":"Loan originators are taught to develop REALTOR relationships. While development of those referral relationships is important, I've seen originators waste time and money on unprofitable \"partnerships\". This initial article, in my new series about REALTOR marketing, will explore how to quantify the referral relationship to more efficiently understand how to\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":967,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/967\/a-selfish-case-for-national-originator-licensing\/","url_meta":{"origin":1964,"position":3},"title":"A Selfish Case for National Originator Licensing","author":"Brian Brady","date":"January 29, 2007","format":false,"excerpt":"There is a movement to create a national licensing platform for loan originators similar to the one the National Association of Securities Dealers (NASD) requires for registered representatives. Supporters of this movement claim that originators must be licensed because the quality of advice given to the consumer is woefully inadequate.\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":810,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/810\/a-realtors-guide-to-alien-lenders-2\/","url_meta":{"origin":1964,"position":4},"title":"A Realtor’s Guide to Alien Lenders","author":"Brian Brady","date":"December 26, 2006","format":false,"excerpt":"\"First you get the money, then you get the power, then you get the ....\" -Tony Montana in the movie, Scarface The professional Realtor has always helped a would be homebuyer by referring her to a credible financing source. That paradigm has shifted much in the past few years as\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3164,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3164\/the-unchained-originator-ken-stampe\/","url_meta":{"origin":1964,"position":5},"title":"The Unchained Originator: Ken Stampe","author":"Brian Brady","date":"May 26, 2008","format":false,"excerpt":"I was disappointed with the low turnout of loan originators at UNCHAINED. There were two local originators, who attended our Mesquite library performance, and my buddy Ken Stampe. Ken and I met in 2006, on Active Rain. He was one of the first to sign up for Unchained. 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