The No Fee, New Office
Growing up before video games as we know them today, back in the day the most we had was Atari. So for many of us we all listened to music, more so than the kids of today. As many of you have had that experience where an old song gets stuck in your head, for me it has been that Journey song “Don’t Stop Believin” the part of “Working hard to get my fill, Everybody wants a thrill, Payin’ anything to roll the dice just one more time”
It’s seems so fitting since this was the second week that our new offices have been open. I am the Owner / Broker of Solutions First Mortgage Inc and a co-owner (1/3) RE/MAX Superior Properties in Sarasota. One of my partners is also a building contractor adding his company to the mix solidifies a core group of well rounded real estate professionals. Our focus is to bring complete ethics and quality service back the consumer. Please do not take the comment as all real estate professionals are unethical. It’s no secret that every part of the industry has had their fill of unethical people.
Just recently I was sitting in a closing when the Realtor for the buyer asked why my lender would not approve the HUD1 (settlement statement) with her real estate brokers professional fee on it. My reply was simple the CFPB has set the rules and regulations around protecting the consumer from being slammed and over charged in a transaction loaded with junk fees. The agent called their real estate broker who told his agent to get the buyer to write a check directly to the real estate broker outside of the closing or settlement statement.
If you’re a borrower and someone asks you to write a check outside of the closing statement, it may be best to talk to an attorney or the CFPB first before doing so.
Recently to the best of my knowledge the National Association of Realtors has stated that the Real Estate Broker Fee or Professional Fee as it is most often called, is part of the brokerage compensation. Let’s be real and look at this from an insider’s point of view.
As I stated above, I am an owner of both a mortgage brokerage and a real estate company. Our offices do not have a professional fee, administration fee, or any other added on junk fee. We have gone back in time with just a straight standard compensation plan. Neither one of our companies pushes or requires any personnel to refer any clients to use any one of our affiliate companies. There is no mix in compensation or benefit between companies.
We are excited and believe we can build our companies ethically; up front, honest, and transparent. Our definition of transparent is completely different than the governments meaning of transparency.
At Solutions First Mortgage Inc. we are lender paid and the compensation is fixed. So when you apply with us your rate will be based on par pricing coinciding with your credit score, LTV, DTI, and type of property.
I have worked hard to match the compensation plans between all my lenders to have more uniformed pricing across the board. There is very little difference between them. Please note we have to look at the borrower’s situation and credit and financial status and find the best program that meets the lender’s underwriting guidelines that fits the borrower’s scenario.
As for our RE/MAX Superior Properties office, we believe our compensation should in most cases come from the seller’s side of the transaction as they traditionally have. There are general exceptions to the rule such as when a home is for sale by owner, Here we can declare our agency to be as a buyer’s agent and with a buyers agreement can have the compensation paid out of the buyer’s side of the transaction.
Either way we believe the so called professional fee added to the transaction is not something a borrower should be charged. We believe that, like in professional baseball or any sport where the professional athlete goes out daily and practices his/her basic skill sets to perfect their jobs, is the correct way to do business.
Unfortunately the professional broker has gotten lazy and instead of managing, training, coaching their agents to success. They have systematically found a way to wring out the last nickel from the consumer and their agents.
I am proud and excited to be with a group of true professionals working together to do the best we can for everyone involved. If you have questions about your real estate transaction or mortgage loan please feel free to call us no matter who you are doing business with.
Here is my direct line 941-921-1110. Our door is always open to everyone to answer your questions and provide your with the best professional service we can. We are located at 8065 S. Beneva Rd Units # 3 & 7, Sarasota Florida 34238