Replies to This Discussion

Permalink Reply by Maya Thomas on April 5, 2011 at 7:42am

Check to see if it is a Fannie or Freddie.  They can't cut commissions on those loans.

 

Permalink Reply by Dave Gubler on April 5, 2011 at 8:06am

No, it is not Fannie or Freddie. 

Permalink Reply by Kevin - Greenville, SC on April 5, 2011 at 8:45am

Dave,

 

WFHE recently tried to do the same on mine.  I received 6% total and have the approval letter to prove it.  Keep pushing back.

Permalink Reply by Maya Thomas on April 5, 2011 at 9:35am

I've talked to an agent who pointed out that contract interference is illigal and insisted on getting paid what was on the listing agreement and he was paid a full commisison.  I think Broker Bryant did this before.  Send him a message. 

 

Most of the agents in my area hire an attorney or a ss negotiator so that they don't waste their time only to get their commission cut.  A few agents have their mortgage broker licence and have set up a ss negotiation company to handle the short sale.  They have been charging more for the negotiation than the bank usually cuts.  I'm being vague so that I don't violate any laws about talking about commission.

Permalink Reply by Dave Gubler on April 5, 2011 at 10:50am

Well, we are double-ending it so I suspect that has something to do with it.  Using the following letter (which I think I received from someone here on SSS:

 

To Whom It May Concern:

 

This letter has been written in direct response to the request by Wells Fargo Home Equity to reduce the real estate broker’s commission in this short sale transaction from 6% to 4%.  This has been presented by Wells Fargo Home Equity as a condition that must be met for this sale transaction to proceed further.

 

In response to this request for a reduction in real estate commissions we feel it is important that you fully understand the real estate services being provided, the ramifications of the request and our interpretation of the law surrounding the request.

 

As a real estate broker age specializing in short sales, we cannot stress enough the additional work and expenses required by these types of transactions.  We have significant investment in our education, resources, and staff that support short sale mitigation and we simply cannot afford to offer these services at a discount.  It seems unreasonable that a lender would intend to punish the real estate broker by reducing compensation for assisting in a transaction that requires greater than normal vigor. Why would Wells Fargo Home Equity set out to lessen the interest of the real estate broker assisting in a short sale that is sure to yield a better outcome for all parties than a foreclosure sale?

 

In addition to our business concerns, we are also concerned about the legal ramifications of Wells Fargo Home Equity’s request to reduce our commissions.  Specifically, we are greatly concerned about any condition that will lessen another party’s benefit in the transaction only for the possible benefit of a third party.  If this is in fact what is occurring, whether intended or not, it could be construed as a violation of Section 8(b) of RESPA which provides:

 

“No person shall give, and no person shall accept any portion, split, or percentage of any charge mad or received for rendering real estate settlement service in conjunction with a transaction involving a federally related mortgage loan other than for services actually performed.”

 

It certainly seems that there would be a violation of Section 8 of RESPA were the real estate broker to give, and the bank to receive a “percentage” of the “charge” (commission) for their respective involvement in settling a real estate service in conjunction with a federally related mortgage loan, since the bank did not perform any of the real estate agent’s functions in the transaction.

In summation, it seems neither  fair, nor reasonable, for Wells Fargo Home Equity to take a position that will force an unwarranted concession upon the real estate broker.  We therefore request that this condition of the short sale approval be removed and this short sale transaction be allowed to proceed.  As it is a goal of this real estate brokerage to ensure proper compensation for itself, it’s counterparts and for the real estate community in general, we would further welcome any further discussion of this matter that may yield an abandonment of this practice by Wells Fargo Home Equity in the future.

Permalink Reply by Dave Gubler on April 5, 2011 at 2:29pm

Anyone know Tim Mangan's (Wells Fargo Collections Supervisor) email address?  He must have a middle intial or something.  I am getting email bounce on [email protected] and [email protected]

 

Permalink Reply by Glenn Fleisher on April 7, 2011 at 2:41pm

Dave Gubler said:

Well, we are double-ending it so I suspect that has something to do with it.  Using the following letter (which I think I received from someone here on SSS:

 

To Whom It May Concern:

 

This letter has been written in direct response to the request by Wells Fargo Home Equity to reduce the real estate broker’s commission in this short sale transaction from 6% to 4%.  This has been presented by Wells Fargo Home Equity as a condition that must be met for this sale transaction to proceed further.

 

In response to this request for a reduction in real estate commissions we feel it is important that you fully understand the real estate services being provided, the ramifications of the request and our interpretation of the law surrounding the request.

 

As a real estate broker age specializing in short sales, we cannot stress enough the additional work and expenses required by these types of transactions.  We have significant investment in our education, resources, and staff that support short sale mitigation and we simply cannot afford to offer these services at a discount.  It seems unreasonable that a lender would intend to punish the real estate broker by reducing compensation for assisting in a transaction that requires greater than normal vigor. Why would Wells Fargo Home Equity set out to lessen the interest of the real estate broker assisting in a short sale that is sure to yield a better outcome for all parties than a foreclosure sale?

 

In addition to our business concerns, we are also concerned about the legal ramifications of Wells Fargo Home Equity’s request to reduce our commissions.  Specifically, we are greatly concerned about any condition that will lessen another party’s benefit in the transaction only for the possible benefit of a third party.  If this is in fact what is occurring, whether intended or not, it could be construed as a violation of Section 8(b) of RESPA which provides:

 

“No person shall give, and no person shall accept any portion, split, or percentage of any charge mad or received for rendering real estate settlement service in conjunction with a transaction involving a federally related mortgage loan other than for services actually performed.”

 

It certainly seems that there would be a violation of Section 8 of RESPA were the real estate broker to give, and the bank to receive a “percentage” of the “charge” (commission) for their respective involvement in settling a real estate service in conjunction with a federally related mortgage loan, since the bank did not perform any of the real estate agent’s functions in the transaction.

In summation, it seems neither  fair, nor reasonable, for Wells Fargo Home Equity to take a position that will force an unwarranted concession upon the real estate broker.  We therefore request that this condition of the short sale approval be removed and this short sale transaction be allowed to proceed.  As it is a goal of this real estate brokerage to ensure proper compensation for itself, it’s counterparts and for the real estate community in general, we would further welcome any further discussion of this matter that may yield an abandonment of this practice by Wells Fargo Home Equity in the future.

Permalink Reply by Glenn Fleisher on April 7, 2011 at 2:42pm

Glenn Fleisher said:

Dave Gubler said:

Well, we are double-ending it so I suspect that has something to do with it.  Using the following letter (which I think I received from someone here on SSS:

 

To Whom It May Concern:

 

This letter has been written in direct response to the request by Wells Fargo Home Equity to reduce the real estate broker’s commission in this short sale transaction from 6% to 4%.  This has been presented by Wells Fargo Home Equity as a condition that must be met for this sale transaction to proceed further.

 

In response to this request for a reduction in real estate commissions we feel it is important that you fully understand the real estate services being provided, the ramifications of the request and our interpretation of the law surrounding the request.

 

As a real estate broker age specializing in short sales, we cannot stress enough the additional work and expenses required by these types of transactions.  We have significant investment in our education, resources, and staff that support short sale mitigation and we simply cannot afford to offer these services at a discount.  It seems unreasonable that a lender would intend to punish the real estate broker by reducing compensation for assisting in a transaction that requires greater than normal vigor. Why would Wells Fargo Home Equity set out to lessen the interest of the real estate broker assisting in a short sale that is sure to yield a better outcome for all parties than a foreclosure sale?

 

In addition to our business concerns, we are also concerned about the legal ramifications of Wells Fargo Home Equity’s request to reduce our commissions.  Specifically, we are greatly concerned about any condition that will lessen another party’s benefit in the transaction only for the possible benefit of a third party.  If this is in fact what is occurring, whether intended or not, it could be construed as a violation of Section 8(b) of RESPA which provides:

 

“No person shall give, and no person shall accept any portion, split, or percentage of any charge mad or received for rendering real estate settlement service in conjunction with a transaction involving a federally related mortgage loan other than for services actually performed.”

 

It certainly seems that there would be a violation of Section 8 of RESPA were the real estate broker to give, and the bank to receive a “percentage” of the “charge” (commission) for their respective involvement in settling a real estate service in conjunction with a federally related mortgage loan, since the bank did not perform any of the real estate agent’s functions in the transaction.

In summation, it seems neither  fair, nor reasonable, for Wells Fargo Home Equity to take a position that will force an unwarranted concession upon the real estate broker.  We therefore request that this condition of the short sale approval be removed and this short sale transaction be allowed to proceed.  As it is a goal of this real estate brokerage to ensure proper compensation for itself, it’s counterparts and for the real estate community in general, we would further welcome any further discussion of this matter that may yield an abandonment of this practice by Wells Fargo Home Equity in the future.