Hi, stars -
After a years-long stretch of full pay, I've had several commissions get docked lately to 5%. The most recent example comes from LRC, who is negotiating on behalf of Seterus. Per Seterus, they're not 'docking' me 1% - they're 'reassigning' it to LRC to do the negotiation.
I also have a companies called Power Short and Default Loan Servicing doing this on two other files with two other lenders.
Is anyone else seeing this? It looks like a workaround for the guaranteed 6% commissions Fannie and Freddie write in their guidelines and dollars-to-donuts there's a kickback on the other side.
Thoughts?
Alex Krumm
Re/Max Alliance Group
Broker Associate
GRI, Certified Distressed Property Expert
Winner, Five Star® Best In Customer Satisfaction: 2010, 2011, 2012
941-234-3597 Direct
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Problem is, we've been outsourced for months and they didn't tell us they were taking the 1% until they were ready to send the approval :) It's slimy, but if it gets this approved for the sellers, I'm on board. Going forward I'll definitely try that tack.
One of them is HAFA - I actually escalated it straight to Fannie Mae and they told me the 1% drop was non-negotiable. If Fannie tells me this, what can I do??? sigh...
According to HAFA guidelines this is NOT allowed. Did you provide HAFA guidelines to show this?
I certainly did, but their response was that they ARE paying 6% commission - it's just that 1% of it is going a different real estate brokerage, non-negotiable, and that brokerage would be working on the investor's behalf. That was straight from Fannie Mae.
I'm certainly not going to risk a short sale closing over the commission drop, but it's happened now on several files (mostly non-HAFA, to be clear) and it seems to me to be clearly a violation of HAFA guidelines. If it were happening often to other agents I'd bring it up to NAR.
Have it pulled back to Seterus. It is being worked out of a third party. It is BS and seterus is not happy about it. But you can have it woked by Seterus without any 3rd party intervention or commission reduction.
I have the exact same situation. Today, LRS stated that they take the 1% of the commission. Hmmm. (But, it is not on the HUD.) She further stated that the file could go back to Seterus. It is a smart tactic, on their part, though. Now, when you are in a hard spot, they cut the commission when you don't have the time remaining on the contract to have the file sent back to Seterus to complete and salvage the 1%. Imagine what kind of "commission" this leaves for a $58K sale with 2 agents. : (
BTW: Fannie Mae investor, too.
I think I have four pending files now where this is the case. Initially I was OK with it based on the promise that the files would be worked faster, but as it turns out, the files are really, really poky - and I don't think these companies have the authority to truly negotiate the file. It's a pain and it's cutting my compensation considerably.
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