I was talking to a loan officer yesterday, he just finished a training on the new RESPA rules and he told me that now to give pre-approvals for buyers they must have an executed contract of sales, because they must have all the information on the specific property they are purchasing in order for them to give the buyer a Good Faith Estimate. We couldn't discuss all the changes and how them will affect our business. I have to read more about and maybe go to one of the seminars myself. I know some banks and outsourcers if the REO lisitng is under contract and it doesn't go to settlement they will automatically re-assign the listing to another agent. If we take offers only with a pre-qual letter from a lender and then once they have the executed contract the loan is not approve, we will loose the listing and maybe even credibility with out asset managers.How do you think the new RESPA laws will affect out REO business?
Hi Jose, I'm on the Eastern Shore of Maryland and would like to discuss how we can help each other's business grow. Can you send me an email, give me a call, whatever works for you? I look forward to hearing from you.
The condition of our real estate market is at the lowest point in history, so what are we getting, we are getting changes to rules that really do not matter. No loan is secure till it funds. There are 50 ways to leave your lover and 1000 to say no to doing a loan at the last minute. I can see all these new rules bringing things to a grinding halt as if there were not moving slow enought currently. This reminds me of a story that Stephen Covey tells about the subway in England. Instead of the conductors going on strike they just followed every published rule. I am all for CHANGE.. lets change it all back....(said with humor)
RESPA is going to change many things. I think that January is going to be a very tough month for originations, and February will be tough for closings. They turned a 1 page good faith into 3 or 4 pages, and guess what.. if you plan on getting closing cost credit, you can't put it into the good faith.. buyer's wont see the credit on paper until closing time. The lender will have to guarantee certain fees. I am not looking forward to this at all. I;ll be attending a HUD training session tommorro and we'll see what else I can pick up...and will poste here...
The asset managers need to learn these new laws too. But they won't. Most are too busy. The asset managers that I deal with won't accept a prequal,they was a preapproval. I'd like to see more input about this especially from asset managers.
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KIRB in MD.