Blog

Per the Consumer Financial Protection Bureau’s own Newsroom May 28, 2014 the CFPB Takes Action Against Realty South for Mortgage Disclosure Violation and orders the firm to pay $500,000.00

Back in 2006, about a year after I got into real estate, I noticed several local Brokerages working very closely with affiliated companies like Title companies or Mortgage Lenders. Fresh out of real estate school, these business affiliations were always a point of contention with me because, it felt like a fine line RESPA violation. Granted, the company I worked for at the time had it’s own business affiliations, namely a  specific Title company that was attached to almost all of their brokerage office but, we had a single page disclosure to consumers that made it clear, they didn’t have to use any affiliated business service provider and had the right to use whoever they wanted for any required service. In essence, I felt safe about using affiliated business service providers because, we made it clear, it was nothing more than a suggestion and not a requirement.

With all that being said, I do remember some brokerages (not the one I worked for) where consumers weren’t given the choice, option or disclosure that they didn’t have to use the brokerages preferred Lender or Title company. I remember walking into brokerages where big signs at the door greeting me with advertisements like, “ABC Bank Offers the Best Rates for Realty USA Clients”. Or course, I changed the names to protect their identities but, these types of ad’s were common place in some brokerages around here.

Well, back then, I don’t guess many people thought twice about the RESPA violation or potential violation because, whoever heard of any being fined or charged with a crime? Sure, we heard stories but, they were always in some far off state about some no name broker so, who really worried about that happening here?

Well, in light of recent news from the CFPB, people better start wising up quick. The CFPB is here and they are looking to make a name for themselves off the convictions and fines for violators. To be crystal clear, this is a good thing, my industry needs some serious enforcement. Truth is, the serious lack of enforcement over the years has created a industry where honest mistakes, systemic errors, gross incompetence, and in some cases, nefarious intentions are routine with some brokerages. It’s sad to say this but, it’s true. I am frustrated every day….no exaggeration….every single day by at least 2 or 3 Realtors who call me to ask me questions about my clients confidential transaction information that when I reply to them, “I am sorry but, I reserve those discussions with my clients only”….they blow up, accuse me of not knowing my job. It’s pathetic…..it really is. My point is, I am an advocate for enforcement, at least at this stage, all the enforcement we can get will be a good thing.

I challenge Brokers to read the CFPB newsroom articles. They may be surprised at just how the CFPB is going after violations. In fact, one article I read said that they fined a broker for a violation because, in their opinion, even though they did disclose, it didn’t go far enough. Brokers, you better be doing a good job at protecting yourself and ensuring your business affiliations are properly disclosed and no funny business is going on or, I may be writing a blog about your run in with the CFPB soon.

Russia Took Aim at US Housing and Fired Warning Shot.

The claims may be inflammatory however, Hank Paulson, former US Treasury Secretary during the 2008 financial crisis that saw the bursting of the American housing bubble says he was approached by Chinese senior leadership who claimed that during our 2008 financial crisis, they wanted to partner with China to sell Fannie Mae and Freddie Mac securities in hopes of further crippling the US financial markets.

Hank Paulson, “Here I’m not going to name the senior person but, I was meeting with someone…. This person told me that Chinese had received a message from the Russians which was, “Hey Let’s join together and sell Fannie and Freddie securities on the market” The Chinese weren’t going to do that but again, it just, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship.”

For many years now, I have been writing blogs on just how terrible our debt crisis is. I have been land blasted by the progressive liberal left that argue we don’t have a debt crisis and my fears are unfounded….or even worse, the stuff of conspiracy theories. I have stayed true to my believe that having so much of our debt controlled or in the hands of foreign countries that aren’t allies of America is dangerous and one day, may come back to haunt us. The quote from former Secretary of the Treasury further strengthens my position that wars in the future will expand to more than just ground forces taking over a sovereign nation however, digital warfare and economic warfare will become more common in this new century.

If you don’t see the urgency of our debt crisis and how our uncontrolled spending could be a fatal shot to our economic health as a country….just ask Russia what their opinion is. Based on this communication Hank had with China, our enemies see our debt crisis as an opportunity to bring us down. The fact that Hank would come out and say this now should be eye opening, it should shake this country to it’s very foundation. Lady Liberty will be crushed under the mighty weight of debt….a burden she isn’t naturally strong to carry.

My point, is that our Liberty, our Freedom, our America can only survive, thrive, prosper when we as a country are not vulnerable to outside economic warfare. Our problem is, economic warfare is preventable, it’s easily remedied by controlling our spending however, like a meth addict, what is it going to take for us to hit our preverbal bottom….what do we have to go through before those dependent on the system wake up and ask themselves not what your country can do for you but, what can you do for your country?

By then, it may be too late.

Why you should attend the Short Sale Symposium at Sea.

In the past couple days, I have gotten a few calls and emails from members wanting to know what my thoughts are on the Short Sale Symposium at Sea by the Short Sale Specialist Network so, let me make this easy for everyone and just write a blog about it.

1. It's a CRUISE! Ok....do I really need to say more? Surely not....but, I will....lol.

• Hassle Free: This is the best part for me. I pack and unpack once. I don't have to drive around, look for a hotel, wonder if the part of town I am in is safe or where I am going to eat.
• Get Away: I love being out of the country, truly away from the daily grind.....it's so refreshing. No alarm clocks, no PHONES, no emails, etc... (NOTE: If you really need it, you actually can get email on the boat, if you want to pay a little extra)
• It's First Class: The cruise staff treats you well. People are nice, they go out of their way to make your experience a first class experience.
• Do It All or Nothing At All: It's a cruise, you choose what you do, when you do it.
• A New Place Daily: I love being able to come back and tell my friends and family about all the places I have been, Jamaica, Grand Cayman....all on one trip.
• I Am Never Bored: These ships have all kinds of things to do. From shows, dining, events, activities, etc.... you can't get bored. Just between us, I am more a cocktail pool side kind of guy.
• Shopping!: Yes, we love shopping at all the local shops in port, getting to experience the locals and having a good time on land.
• Friends Everywhere: Cruises are designed to network....you're on a ship and everyone is there to have a good time so, meet some people and have a good time, make a friend or two.
• Romance: Ok...yes, cruises are very romantic, something about taking your spouse with you, having a day full of classes and learning, then a nice romantic dinner on your cabin balcony, watching the sun set......uummm, well, that is enough of that, you get the point.

That about sums up the first reason I give people why I love the Short Sale Symposium at Sea now for reason # 2.

2. The Short Sale Symposium at Sea is the most unique and fun-filled conference our industry has. Who said a conference can't be a freaking blast? It doesn't have to be filled with suits and ties, stuffy lecture halls and crazy schedules. Instead, why can't we learn and network in shorts, t-shirts and flip flops? Oh...wait, we can, it's called Short Sale Symposium at Sea. It's a relaxed environment and offers incredible opportunities to learn, network and get to know other professionals and how they are working in their home markets. It really is a conference but, much more fun.

After those two reasons, do you need anymore? Well, you don't have to take my word for it, go to www.ShortSaleCruise.com and listen to the testimonials of the other attendees yourself, then you decide.

I really hope to see you there.

Jesse G.

If you have a home loan through Bank of America and you are currently concerned about making your payments or your home is worth less than you owe, you may qualify for a short sale incentive from BoA. They refer to it as an 'enhanced relocation assistance payment'. To qualifying home owners/sellers, this could mean a check given to you for up to $30,000 after a successful short sale closing! Trust me, this is no scam. Here is a recent email that was sent to Bank of America Short Sale Specialists, like myself.

My name is Michael Collins, real estate agent and broker at Rock Realty. If you are currently considering a short sale in Wisconsin, I would be happy to walk you through the process and answer any questions you may have. I am certified as a Short Sales & Foreclosure Resource through the WRA.

Realtors® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities. The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk. Call my cell at 608-921-8536 and we can see if you qualify for any of these incentives.

Also feel free to fill out our simple
Short Sale Home Evaluation Form

Additional Short Sale Information

• Is a Short Sale right for my home?
• Half of Homeowners Underwater on their Mortgage
• Buying a Wisconsin home after a Short Sale or Foreclosure
• Benefits of Buying an Owner-Occupied Wisconsin Short Sale
• Tips for Buying a Wisconsin Short Sale

If you receive a letter from Chase Bank stating that you are eligible for a short sale incentive, please do not throw it away. It is not a scam. Distressed home owners have been receiving these letters for over a year now, and guess what? They are the real deal!


Real estate agents and Realtors® have been reporting that their clients are getting large checks cut to them at closing. In some cases, as much as $30,000! Yes, Chase Bank is not only forgiving the debt on a short sale, they are giving the current sellers/owners a check at closing. Don't believe it? See an example letter below:


My name is Michael Collins. If you are currently considering a short sale in Wisconsin, I would be happy to walk you through the process and answer any questions you may have. I am certified as a Short Sales & Foreclosure Resource through the WRA. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities. The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk. Call my cell at 608-921-8536 and we can see if you qualify for any of these incentives.


Original Post -
Chase Bank Short Sale Seller Incentive


Additional Short Sale Information


• 

• Is a Short Sale right for my home?
• 

• Half of Homeowners Underwater on their Mortgage
• 

• Buying a Wisconsin home after a Short Sale or Foreclosure
• 

• Benefits of Buying an Owner-Occupied Wisconsin Short Sale
• 

• Tips for Buying a Wisconsin Short Sale

So, how many agents are leaving the industry due to lack of
work? Have you ever stoped and asked yourself that question? Most likely not
but, I did this week because a friend of mine who owns their own real estate
brokerage told me that he is expecting that by the end of this year, his office
is going to shrink......so much so, that he may actually close his doors.

You see, many, if not all brokerages are built around
reoccurring revenue streams brought in by the agents. Obviously, I am not going
to go through every single office business plan I know of but, ultimately they
all revolve around either one of two...or both of these ideas.

Idea # 1: High
monthly fee and little to no commission split. These offices charge agents a
high monthly fee....like $500.00 a month or so and, yes...that is high in my
area. Now, these offices don't really care if the agents on their roster do any
business at all because, the broker is paying bills and making money off the
monthly fee. Normally, in these offices, the broker isn't making any money on
commissions anyways so, he is working for just that monthly fee.

Idea # 2: Low to
no monthly fee and high or graduates commission splits. These offices make the
bulk of their money on the performance of the individual agent. These offices
will typically charge little to no commission splits however, they typically have
a skeleton staff and expect the agent to be able to handle most all issues with
little to no broker involvement.

Now, as you can
expect, plenty of pros and cons with either major model however, what happens
to these models when the number of agents in the industry or in local markets
begin to dry up?

Well, the
competition for agents becomes more fierce and these 100% or low monthly fee
offices begin attracting a lot of agents. Much like we have now in my market.
The problem is these office typically attract the type of agents that most
people should steer clear of. Now, granted, this isn't true in every market and
this is strictly my opinion however, my experience is that before a agent truly
gives up on their business they go into the Realtor Death Spiral. Yes, this is
a phrase I just thought up.

So, what is the
Realtor Death Spiral? Ok...so, here it is. It's when you have a Realtor who has
been struggling the past few quarters and is now having to make a decision. Do
I stay in the business or do I go back to do what I know how to do? You see,
most Realtors, 99% of us, didn't grow up thinking...oh, I want to be a Realtor.
We grew up thinking, I want to be a fireman, a police officer, a marine or in
my case, a secret service agent...yes, that is true. My point is, we all came
from another industry and we either fell into real estate because we had a
friend who was selling their home or it was a part time "job" for
vacation money or...whatever reason you can think of other than, I want real
estate to be my career.  With all that
said, it means that many of us....almost all of us thought to ourselves, well,
if I can't make it big and live like Donald Trump, then I will go back to
teaching, being a stay at home mom or steel worker.

Now, let's look
at the graph above...yes, I pasted that in here for a reason. The graph is the
latest information I could find from the National Association of Realtors on
the number of Realtors by year. Look closely at the nose dive in the past 4
years. You see, the graph clearly shows that when real estate was good.....or
easy, people were becoming Realtors left and right. In fact, if you look at the
graph just a little closer, see how we doubled the amount of Realtors from2000
to 2006. That's right people, in 6 years, we doubled the number of people in
our industry. Now, consider that when I tell you that back in 2007, NAR release
a statistic that said something to the effect that 93% of all Realtors, DID NOT
CLOSE MORE THAN 3 DEALS A YEAR! In fact, I read at one time that the average
income of a Realtor was like $26,000.00....that's not even a million dollar in
sales in my area.

Well, I will
leave it up to you to come to your own assumptions and conclusions however, I
am of the mindset that our industry does need to do some "house cleaning"
if you will. In fact, I venture to say that as the housing bubble was blowing
up so was the rank and file Realtors and now, as the bubble is busting....those
same agents are looking at themselves in the mirror and saying, "Damn,
this is much harder, much more expensive, much more involved than I thought or
ever experienced it really was". Yes, we are going to start seeing a mass
exodus of agents from our industry, in fact, many of us in the industry have
noticed this for the past 2-3 years. I must admit, I am glad to see it.
Personally, I am sick and tired of dealing with agents who have been in the
business for 3,4,5 years, sold 3-5 homes a year, has a full time or part time
job in another industry and then complains that they want to do REO and no one
will help them get into the business or that they attended some conference but,
they had no ROI.

Our industry
needs to purge the part time agent. These agents don't do much for our
industry. Yeah, maybe they have a place and time but, it's not now. Now, we
need to get back to professional standards, common sense and the Realtors who
are here, participate, contribute and improve our opus.

Now, don't get me
wrong, people got to pay bills, people got to do what they got to do in a
country with an unemployment rate of 9.1% but, let's make sure we are all
looking at this with an ounce of perspective. Let's make sure when we see
brokerage office closing, or agents retiring their license that we stop and
realize, fortunes are made in times of recession and those who can survive
deserve to be here and reap the rewards of their commitment.

So, how many agents are leaving the industry due to lack of
work? Have you ever stoped and asked yourself that question? Most likely not
but, I did this week because a friend of mine who owns their own real estate
brokerage told me that he is expecting that by the end of this year, his office
is going to shrink......so much so, that he may actually close his doors.

You see, many, if not all brokerages are built around reoccurring
revenue streams brought in by the agents. Obviously, I am not going to go
through every single office business plan I know of but, ultimately they all
revolve around either one of two...or both of these ideas.

Idea # 1: High
monthly fee and little to no commission split. These offices charge agents a
high monthly fee....like $500.00 a month or so and, yes...that is high in my
area. Now, these offices don't really care if the agents on their roster do any
business at all because, the broker is paying bills and making money off the
monthly fee. Normally, in these offices, the broker isn't making any money on
commissions anyways so, he is working for just that monthly fee.

Idea # 2: Low to
no monthly fee and high or graduates commission splits. These offices make the
bulk of their money on the performance of the individual agent. These offices
will typically charge little to no commission splits however, they typically
have a skeleton staff and expect the agent to be able to handle most all issues
with little to no broker involvement.

Now, as you can
expect, plenty of pros and cons with either major model however, what happens
to these models when the number of agents in the industry or in local markets
begin to dry up?

Well, the
competition for agents becomes more fierce and these 100% or low monthly fee
offices begin attracting a lot of agents. Much like we have now in my market.
The problem is these office typically attract the type of agents that most
people should steer clear of. Now, granted, this isn't true in every market and
this is strictly my opinion however, my experience is that before a agent truly
gives up on their business they go into the Realtor Death Spiral. Yes, this is
a phrase I just thought up.

So, what is the
Realtor Death Spiral? Ok...so, here it is. It's when you have a Realtor who has
been struggling the past few quarters and is now having to make a decision. Do
I stay in the business or do I go back to do what I know how to do? You see,
most Realtors, 99% of us, didn't grow up thinking...oh, I want to be a Realtor.
We grew up thinking, I want to be a fireman, a police officer, a marine or in
my case, a secret service agent...yes, that is true. My point is, we all came
from another industry and we either fell into real estate because we had a
friend who was selling their home or it was a part time "job" for
vacation money or...whatever reason you can think of other than, I want real
estate to be my career.  With all that
said, it means that many of us....almost all of us thought to ourselves, well,
if I can't make it big and live like Donald Trump, then I will go back to
teaching, being a stay at home mom or steel worker.

Now, let's look
at the graph above...yes, I pasted that in here for a reason. The graph is the
latest information I could find from the National Association of Realtors on
the number of Realtors by year. Look closely at the nose dive in the past 4
years. You see, the graph clearly shows that when real estate was good.....or
easy, people were becoming Realtors left and right. In fact, if you look at the
graph just a little closer, see how we doubled the amount of Realtors from2000
to 2006. That's right people, in 6 years, we doubled the number of people in
our industry. Now, consider that when I tell you that back in 2007, NAR release
a statistic that said something to the effect that 93% of all Realtors, DID NOT
CLOSE MORE THAN 3 DEALS A YEAR! In fact, I read at one time that the average
income of a Realtor was like $26,000.00....that's not even a million dollar in
sales in my area.

Well, I will
leave it up to you to come to your own assumptions and conclusions however, I
am of the mindset that our industry does need to do some "house
cleaning" if you will. In fact, I venture to say that as the housing
bubble was blowing up so was the rank and file Realtors and now, as the bubble
is busting....those same agents are looking at themselves in the mirror and
saying, "Damn, this is much harder, much more expensive, much more
involved than I thought or ever experienced it really was". Yes, we are
going to start seeing a mass exodus of agents from our industry, in fact, many
of us in the industry have noticed this for the past 2-3 years. I must admit, I
am glad to see it. Personally, I am sick and tired of dealing with agents who
have been in the business for 3,4,5 years, sold 3-5 homes a year, has a full time
or part time job in another industry and then complains that they want to do
REO and no one will help them get into the business or that they attended some
conference but, they had no ROI.

Our industry
needs to purge the part time agent. These agents don't do much for our
industry. Yeah, maybe they have a place and time but, it's not now. Now, we
need to get back to professional standards, common sense and the Realtors who
are here, participate, contribute and improve our opus.

Now, don't get me
wrong, people got to pay bills, people got to do what they got to do in a
country with an unemployment rate of 9.1% but, let's make sure we are all
looking at this with an ounce of perspective. Let's make sure when we see
brokerage office closing, or agents retiring their license that we stop and
realize, fortunes are made in times of recession and those who can survive
deserve to be here and reap the rewards of their commitment.

You may not have ever heard of Techwood Homes however, that doesn’t negate its pivotal role in American history, our history.

Techwood Homes was the first public housing project in the U.S. Located in Atlanta Georgia, it was completed in August of 1936. However, keep in the back of your head that it wasn’t till November 1937 that it was opened and dedicated by the trumpeter of Social Housing, Franklin D. Roosevelt, himself.

Now, it’s also important to know why America decided to get in the business of Government housing. The reality is, America had a concentrated number of poor and most all of the poor were living in slums. These were not nice places. In fact, many municipalities contributed large majorities of all their criminal activities to the slums and the poor who lived in them. So, in many ways, the American Government got into the business in the name of reducing or eliminating crime and yes, if it also progressed the Socialist Agenda…….well, that was a side benefit that wasn’t talked about much.

Now, the Techwood Homes were posh. They had bathtubs, electricity, ranges, garages, laundry facilities, library and even a kindergarten on site. By all accounts, they were nice, for what they were.

The sad part of this story was, the irony behind what eventually happened to Techwood Homes. You see, it became what it was supposed to prevent, a nest of crime, corruption and an example of urban blight.

After Techwood Homes were developed, many other Social Housing units sprung up in many urban settings, namely, New York, Chicago, New Orleans and San Francisco. Unfortunately, I can’t think of a single one that was ever trumpeted as a triumph…..I wonder why?

In 1996, Atlanta decided to destroy the Techwood Homes, it was an embarrassment to the city and because they were entering the world stage due to the Olympics, they couldn’t allow the blighted structures to stand.

The fact is, where you find poverty, you will almost always find high crime. It doesn’t matter how nice the house is, where the house is located, who maintains the lawn and plumbing, poverty is an incubator to criminal activity.

The Progressive leadership learned their lesson and decided that Social Housing, in the sense of large institutional style structures just weren’t a good way with progressing their agenda to provide government housing in their socialist society. I guess they never realized the power of poverty.

Shortly after these failed attempts, it became a political death nail in a politicians preverbal coffin however, it didn’t stop the agenda. It was during this time we saw private sector subsidy’s in the form of Section 8 housing and others.

Well, the socialist mantra, to never let a good crisis go to waste has never had such gusto. You see, during this housing crisis, which was engineered by progressives through the Community Re-Investment Act, they now see the light at the end of the tunnel. That’s right, a Progressive crafted crisis will give them the ability to forward their agenda and provide Social Housing through programs such as HAMP and other Foreclosure Prevention programs.

Yes, I am saying it and I am not apologizing.

I believe this housing bubble was engineered, crafted and laid in plan through the use of the Community Re-Investment Act and in turn, the Progressive dream of every American to have a home, laid down by F.D.R. can now be accomplished because no politician has the fortitude to tell people if you can’t afford your home, get out!

Make no mistake, I am all about saving people from foreclosure but, I also know that unless a homeowner has a job, counting peoples unemployment benefits as income so they can get approved for HAMP is a recipe for a bigger disaster or better yet, a door way for more Government assistance and possibly eventually allowing the Government to cancel the homeowner’s debt and remain in the home through a bank the Government has institutionalized or taken over……let’s say ….I don’t know…..Bank of America.

I do believe, it’s Obama’s agenda, along with the Progressive party, to either cancel the debt of homeowner’s who are struggling to make their payment or at least, give enough government subsidy that the homeowner can keep their homes under the waving flag of social housing. Be careful America, we are treading on dangerous ground.