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Ok...so, I am getting all kinds of chatter from some fairly reliable sources that say Matt Martin and HUD are having some sort of tiff / fall out. Apparently, what I could find is that back in 2010, Matt Martin filed a lawsuit against the Fed but, apparently some later developments have happened that I need some more information.....so, anyone know anything and are willing to share publically? If not, send me an email to JGonzalez@LibertyHouseRealtyLLC.com and I will keep my sources confidential.
Note, I have attached, what I believe to be the documents from the lawsuit back in 2010 as a pdf below you can read.
So, does anyone know for sure, did Matt Martin get the award from HUD or not? That is the problem I am running into. I have heard that some agents are waiting on list price for weeks on end, I have heard that some believe they got the award for the West USA....but, no one knows for sure.
I'm with PEMCO, and I serving Washington - Tacoma area. Yes Matt Martin got the award in the East side region. BLB got their account extended - good for them. 2s region will be deleted. Visit fedbiz website (google it) =) . Awards are published on that...
Is Wisconsin in Region 2? Who is getting the business in our state -- I was told Matt Martin?
Wisconsin is 3D region. The asset manager for that region is Best Assets.
Do you know who's getting the HUD bid for California?
Currently still PEMCO and BLB until MM3.5 is announced. BLB is currently accepting registration.
Any idea on HUD bid for GA?
Ok....so a little bit of an update. I got an interesting email but, I don't know if it has anything to do with my original post. I am posting it because, I think it may provide a little back story to what is happening now.
NOTE: I did remove her / his name and any identifying information. I will keep her / his information confidential so, please don't ask who she / he is. I did have to change the story up a little so that I kept her / him confidential.
So, Jane Doe sends me an email and says....
While I don't have direct knowledge of this lawsuit, I can provide some possible background information that may be relevant. Our firm listed property for HUD when a company called HomeSource had the HUD Contract. HomeSource lost its contract with HUD when HUD decided to use a small number of servicers who could handle national accounts as opposed to the regional approach HUD used in the past. "In the old days" HomeSource paid the listing agent $300/listing to put up a sign, put on a lockbox, and place the property in MLS. Buyer's agents could earn up to 5-6% on the sale. With the consolidation of servicers, HUD changed it's payment structure with both the listing and selling brokers earning 3% each. It was at this time the Matt Martin and a few others were awarded the servicing contracts. Matt Martin then devised an arduous application process for agents/brokers to get on their approved list to service listings. Only one agent/office was allowed.
HomeSource also sued HUD when they lost the contract, claiming, among other things, that Matt Martin had hired former HUD employees to advise them. HUD's regulations always prohibited the servicing contractor from having any financial benefit as the result of referring listings to brokers/agents, such as a referral fee or kickback. The Master Lisitng Agreement between the servicer and the broker spells this out. But, Matt Martin's firm added a "hidden" addendum to the HUD Master Listing Agreement in which the referred broker agreed to pay one-third of the brokerage fee (1% of the total 3% fee) to Matt Martin on each listing referred at closing.
A few years ago, and following the awarding of a HUD contract to Matt Martin, I received a phone call from an investigator from HUD. Apparently, there were a lot of complaints about the long delay of HUD homes coming on the market and other practices of the servicer(s). I explained to the investigator about the fee being charged by Matt Martin to brokers and provided her with a copy of the agreement I received from Matt Martin. HUD was holding hearings at the time.
So, perhaps, Matt Martin cooked his own goose by being greedy and failing to follow HUD's guidelines. He may be lucky that he's not in jail."
If you look at their website, there aren't any HUD properties listed. There are a few MMREM managed HUD properties active in our MLS, but nowhere near the quantity that there was previously.
Excellent feed back. I buy from HUD and frankly am thrilled by the low quality asset management and listing representation. With the realignment of master contracts, I considered becoming a HUD broker but the limitation on listing brokers purchasing from HUD was a deal killer. Every time I make a ton of money flipping a HUD home, I feel bad as a taxpayer but it doesn't stop me from cashing the check. It appears HUD, their asset managers, and listing agents are working hard to make HUD the seller of last resort. Keep it up it just makes me more money.