CATALYST ASSET MANAGEMENT - TAKING 1% OFF THE TOP?

I just received the following e-mail message:

Hello Mr. Mondy,

This account was forward to me. Catalyst is managing the listings on behalf of the Mortgage Holder RCS for faster processing on this short sale. RCS pays Catalyst 1% and Buyer/Selling Agent 5% split. I have attached all the documents needed to move forward. I will ordered the Interior BPO once you have placed a lockbox on the property. Please forward me the authorization to release information short sale referral agreement back along with a copy of the signed listing agreement.

I attached a financial package that will need to be completed once offer received.

Thank you,

Patience Castillo

Catalyst Asset Management

Has anyone else come across this?  If so, did you find a way around giving up 1% of the commission by cutting them out of the picture?  Honestly, I've never come across this sort of this before and am unsure of how to proceed.  If I go ahead and acknowledge them, then I'm stuck.  But if I can somehow fight this on the front end, then I may be able to conserve that ever-important 1% which, by the end time this deal has closed, I will have surely earned 3 times over.

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Replies to This Discussion

Permalink Reply by Wendy Rulnick on February 4, 2013 at 3:16am

Mike - I have not come across this, but others have emailed me. What have you ended up doing?

Permalink Reply by Brian M. Rust on February 26, 2013 at 12:50pm

Hey Mike,

If you have a minute, please read my blog on here entitled "Catalyst Asset Management is owned by Residential Credit Solutions". I think you will find it really useful, as it includes contact information for upper management, their email format, and their internal phone number sequences.

I finally spoke with one of their Director's this evening after endless requests over the last 3 weeks, and my initial stance on this situation was just solidified. Residential Credit Solution's servicing policy is to only allow 5% to the commissions. However, if you allow Catalyst Asset Management to get involved, they will increase the 5% to 6%, but with the understanding that your broker will have to agree to pay Catalyst that 1% back as a referral fee.

I have decided that if Residential Credit Solutions will unfairly restrict our commissions to 5% (regardless of whether or not the investor authorizes 6%), I will eliminate this (in my opinion) unjustifiable income stream for Residential Credit Solutions by refusing to allow Catalyst Asset Management to be involved in the transaction.

As it is, Catalyst Asset Management's short sale processing team is only a one person operation (Patience Castillo). I believe it's Residential Credit Solution's hope that Brokers will simply give in and involve Catalyst for no additional cost. If enough broker's refuse to work with them or any other "voluntary asset management company" that they've create, at least we will have killed off this unwarranted income stream for them.

Call or email me if you want to discuss this. I believe three other agents have already cut Catalyst's income stream out of their transactions this month.

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