In California, a Hispanic woman gets only about 77% of the wage that an average American male would get for doing the same job. If, however, she were a realtor, she would get paid the same commission that any other licensed real estate agent would get. She does not need to study at Harvard or raise millions of dollars in capital to become a real estate agent. In fact real estate broking firms offer training and support to new agents, helping them find a foothold for themselves in the industry. Real estate industry is now threatened as rogue business practices of Altisource are setting dangerous precedents that will ultimately deprive real estate agents of a fair opportunity to succeed.
The "land of opportunities" now offers fewer opportunities to those without capital than ever before. The premise behind income tax is that you take a bit of capital from those who have it in abundance and provide it to those who do not have enough of it. William Erbey not only is a beneficiary of tax breaks but pro actively seeks to save on taxes by locating his companies in places known as "tax havens". This means that individuals looking for capital to setup businesses that actually contribute to a "need based" rather that a "profit based" economy have less of it.
The real estate industry provides various business and employment opportunities to many individuals. Individuals do not require ivy league degrees and need little or no capital to set themselves up in this industry. This is not appreciated by the likes of William Erbey who intends to change all that through Altisource.
Ocwen push borrowers towards foreclosure so when the properties are foreclosed they can auction them off on HUBZU. Not only do Altisource earn real estate commission, buyer's premium and other fees but also kick back a portion of the real estate commission to Ocwen via RESS or REO Management, LLC.
Altisource insist that buyers sign a Purchase and Sale Agreement that is prepared by Altisource's general counsel. Further to that they provide closing instructions to closing agents requiring that the closing agent split the listing agent's commission and pay a portion of it to either Real Estate Services and Solutions(RESS) or REO Management, LLC, who are both subsidiaries of Ocwen Financial Corporation. The closing instructions also require the closing agent to represent the "Buyer's Premium" and "Web Tech Fee" in such a manner that it is included in the purchase price, the buyer pays it twice on the HUD and the seller provides a credit to offset one of the charges. If the property is sold through an external agent, the agent is required to sign a listing agreement wherein he must agree to pay a part of the real estate commission to RESS/REO Management, LLC.
If you have bought an REO property through HUBZU, please take a look at the HUD and you'll see this for yourself. You can obtain a copy of the closing instructions by writing to the closing agent. I recommend that you provide these to regulators as evidence so they can understand how Ocwen benefit from foreclosures. Regulators should examine the books of these companies to understand what part of the monies collected, if any, were disbursed to Ocwen executives like Bill Erbey and Ron Faris.
Altisource act as a real estate agency through its subsidiary RHSS (do not confuse this with RESS) and engage in questionable practices. The whole system is designed to benefit Altisource and investors like builders, flippers etc. The ordinary home buyer looking to buy a property through HUBZU does not stand a fair chance to successfully complete a transaction. Altisource insist that the purchaser will not turn on water while inspecting the property. This is because the Altisource agent is located miles away and cannot supervise the inspection. They do not even sign the contract. Transaction Coordinators in India are forced to copy paste the agents' signatures from a PDF document.
Altisource real estate agents, like David Judd, offer properties to investors like California Kingdom Builders for lower than market price bypassing HUBZU. Allow me to offer an example. Property located at 2004 Voorhees Ave Unit B, Redondo Beach, CA 90278 was offered by David Judd to California Kingdom Builders via email. An existing contract with a higher purchase price was canceled with the help of Altisource managers and the HUBZU listing requirement was waived off. Altisource sold the property on 03/29/2013 to California Kingdom Builders for $651,500 who sold it three days later for $835,000. Such deals are very well orchestrated by certain RHSS agents and Altisource managers. You can check the Los Angeles county records to verify this.
Auctions on HUBZU are not fair. Certain investors were able to win auctions using "autobid" feature and then get price reductions. Other bidders who were willing to pay higher are outbid in this manner but investors net lower as the winning bidder is given a price reduction. So the one willing to pay more does not always win a HUBZU auction.
The state of Georgia requires even online auctioneers to be licensed. Altisource acquired auctioneering license in the last quarter of 2013, as far as I can ascertain. If any agent from Georgia has noticed auctions prior to that, then it should be highlighted to appropriate authorities so it can be investigated and appropriate action can be taken.
So you see why they would need their own auction site, their own real estate agent and their own closing agent (Premium Title). Premium Title are not a title insurance company but collect bulk of the title insurance fees acting as an agent for Westcor. That too is an example of self-dealing.
All these go against the very principles of good faith and fair dealing. With Altisource you cannot expect a fair deal. You open yourself and your clients up to exploitation. This is precisely why you should not be forced to list your property on HUBZU.
People like William Erbey exploit human resources to create wealth for themselves and those like them. You will not get a share of this "loot" if you are not willing to participate and promote their "profit based" economy of exploiting human, animal and natural resources. Ocwen and Altisource offer stock options and high wages to a select few at the top willing to propagate anti-human activities. A vast majority of Ocwen and Altisource's employees are victims of exploitation.
By using their relationship with Ocwen, Altisource intend to get more and more properties on HUBZU. Altisource Residential are acquiring mortgages with the very intention of renting those properties out. The more they get, the more the foreclosures and lesser will be available to individual real estate agents. This is not good because it would not be "fair competition" and for the reasons mentioned above it would harm the interests of homeowners, homebuyers, investors and other people involved. People cannot be forced into doing business with Altisource.
So we request the government agencies to first hold William Erbey, Ron Faris, William Shepro, Kevin Wilcox, Paul Koches etc. personally accountable and take them to court, then enact regulations that protect real estate agents and other market participants from losing business to such organizations as Altisource. Evidence clearly suggests that they have carefully and deliberately designed businesses to profit from foreclosures and exploit unsuspecting customers and have acted against the interest of real estate agents, home buyers, homeowners and employees.
And, your point is.....................?
BTW - Here's another Company they operate under in CA
The document that you have attached is for RHSS, the listing agent. They split the commission with RESS or REO Management, LLC on the HUD.
The point is that Altisource kick back a part of real estate commission to Ocwen subsidiaries. That acts as the reason for pushing for foreclosures.
Realtors are forced to list properties on HUBZU only to benefit Altisource. I have provided evidence to show that RHSS do not deserve any commission and Ocwen's argument that HUBZU auctions are fair is invalid.
Agents and Brokers are only forced to use Hubzu if they take this listing in the first place. Personally, I take no listings where OCWEN, Altisource and/or Hubzu are involved. We all know what they require. "Agent Beware". Anyone who doesn't know has their head in the sand or is in denial.
I understand your perspective, however, homeowners fighting foreclosure need good real estate agents to help them complete a short sale. Ocwen force them to list the property on HUBZU. While doing so Ocwen exceed the limits of reasonable discretion conferred by the mortgage in order to benefit Altisource. That is not permissible under the law, if proven. Instead of avoiding these homeowners, I wish to help them by proving this.
Great information here. More people need to know about this and choose out of the " Offer Validation" process, or whatever they are calling it these days. If they keep trying to interfere with the process of buying and selling a home. Sooner or later, someone will get the bright idea of leaving Realtors out of the process all together and go straight to one of these sites, such as HUBZU or AUCTION.COM. Have you found ways to avoid the HUBZU ?
The whole process is rigged for profit but its just a time bomb ticking away, they are drawing too much attention to themselves at this point, cant see this nonsense lasting much longer. The superintendent at NYS Department of Financial Services is clearly on to them and other states and eventually the federal government will follow suit. One of my clients also filed a formal complaint with the NYS Division of Licensing concerning the illegal agreements and interference facilitated by Altisource and RHSS. RHSS is a licensed real estate broker in NYS and are bound by very specific agency laws and laws concerning inducing breach of contract.
I am so glad you are here, I am having NIGHTMARE WITH OCWEN now!
I will follow your advice!