Some real estate agents and buyers are being given the run around by folks representing REO bank-owned sellers. To quote from Aretha Franklin, “Who’s zooming who?”
We continue to receive complaints by numerous agents telling us that they are being directed to specific settlement service providers as ordered by banks. So we decided to do a little outreach of our own. We emailed several major banks and asked about their relationship with settlement services.
Interestingly, Chase’s VP of Media Relations replied, “Thank you for your email and consideration. However, at this time I must decline your inquiry.” Why would anyone decline this inquiry, could they have something to hide?
But not everyone is so off-putting. Kudos go to Wells Fargo, who tells us, “Wells Fargo does not direct which settlement services provider a buyer must use.”
This is exactly the way we want banks to handle settlement services. We wish every bank could make the same highly ethical and commendable statement as Wells Fargo.
Filed under: AB957, Buying a house, RESPA violators, RESPA, Real Estate, HUD, Mortgages | Tagged: AB957, Cathleen Galgiani, chase, RE Insider, RESPA, Wells Fargo |
RE INSIDER 
Rcently I have had conversations with a couple of my escrow providers about this AB957 law. My question to them was “how are the REO lenders responding to the law. The answer is “It’s Laughable” From what I’m hearing the lender complies with the law by allowing the buyer to have a choice of settlement providers, ” TITLE & ESCROW”. Then in a counter offer to the purchase contract state if the buyer want use their own settlement providers they can but then the buyer has to pay for fees for said services. It appears they comply with the law but they force they buyer right back to the settlement providers they wanted to use in the first placeby putting an undue financial burden on the buyer. With these cost being in the thousands what do you think the buyers will do???? This law doesn’t appear to do anything. The REO lender still uses who they want, their escrow providers in many case don’t do provide qualtiy, or sometimes complete services. I’ve seen outstanding bills not get paid, because the escrow provider didn’t do indepth searches for past due bills or leins, the title companies convieniently forget to pay past tax bills and leave the buyer 6 months later to find out back fees to be paid tax bills with the REO lenders name on them from previous years and the new owner gets stuck with the bill. Or when the bills hit the fan right after escrow who do you think the buyer comes to for reimbursement? Yeah the Realtor. The the short sale lenders another whole breed of ” let’s see who we can shaft this fee onto”. AB957 should have been written with more specifc guidelines to prevent these lenders legal dept from going around the law. I believe the idea and or intent of the law is great just not well written.
Thanks
Loren