Reply to I think my buyers agent hustled me and did not act in my best interest.

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Reply to "I think my buyers agent hustled me and did not act in my best interest. "

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[quote=Anonymous][quote=Anonymous]
[quote]I'm new to the thread and would like to add my perspective. [/quote]

Welcome.

[quote] Having spent two decades in various roles within a lending corporation, I can affirm that you clearly have no idea what you're talking about.[/quote]

We are not off to a good start.

[quote]Lenders recommend agents with whom we have strong, knowledgeable, effortless relationships with, and they reciprocate. This is to ensure that your deal will close without any hiccups or surprises. [/quote]

They also engage in bribery:

“[Consumer Financial Protection Bureau] has taken a significant number of public enforcement actions under RESPA. The payment of improper kickbacks and referral fees has been the basis of almost all of these actions. Resolving these matters has entailed injunctive relief including bans on entering MSAs or working in the mortgage industry for periods of up to five years. RESPA violations have cost industry participants over $75 million in penalties so far.”

- CPFB Amended Complaint Case 8:15-cv-01973-FMO-AFM

[quote]However, there is definitely not a systematic kickback arrangement within the industry, lol. [/quote]

I cannot speak to a  “systematic kickback arrangement” I have not asserted; my position was kickback arrangements in the real estate industry deserve a level of scrutiny not comparable to industries like medical.

[quote]Since you seem to know much more than we do, please do enlighten us...

- What code should we instruct accounting to use when issuing these "bribes"? [/quote]

The law.

You follow the law (RESPA 12 U.S.C. 2601)

[quote]
- What should be recorded in the system ledger for this kickback that won't trigger red flags?

-How do we determine the amount of kickback?

Is it factored in to our loan-to-value ratio calculations? [/quote]

You are asking the wrong person how to commit mortgage fraud.

[quote]Remember, whatever you suggest would have to evade detection by our stringent internal processes, because such unlawful activities would undoubtedly raise red flags within our tightly controlled operations, and no doubt attract unwanted scrutiny from regulatory bodies like the IRS and SEC. 
I just don't think you have any concept of how heavily scrutinized our industry is
We must adhere to underwriting guidelines -- that is paramount above all else, as mortgage lending undergoes extensive oversight to ensure compliance within the regulatory framework. This safeguards transparency and security for all parties involved. 
[/quote]

This is based on fallacy.

There are many highly regulated and tightly controlled and stringently policed areas where crime occurs. Because you can’t explain how human traffickers evade detection, it does not follow that human trafficking does not exist or defaults to de minimis significance.

[quote] This is the year 2024, it's not like we're still living in the heyday of the 90's, when agents and lenders would share a bag of coke on top of a mirrored table in a strip club, lol.” 
Maybe unethical relationships of this sort were prevalent before the crash of 2008, but they are definitely not reflective of widespread practices within lending institutions today. That's a fact.

Do smaller, sleazier lenders or agents still utilize these kinds of relationships? 
Maybe? I have no idea. [/quote]

The past-was-the-past appeal is meaningless, especially the financial context: “The year 2007. This is not the Zombie Thrift 1980’s era with the Saving and Loan scandal. You implying the financial industry is committing widespread fraud is absurd/insane lol.”

[quote]If you're implying that individual lenders/agents are participating in this kind of unlawful kickback relationship behind their employers back... you're insane. [/quote]

"The payment of improper kickbacks and referral fees has been the basis of almost all of these actions. Resolving these matters has entailed injunctive relief including bans on entering MSAs or working in the mortgage industry for periods of up to five years. RESPA violations have cost industry participants over $75 million in penalties so far."

8:15-cv-01973-FMO-AFM

[quote]This industry is small. 
Everyone knows everyone else. 
Thus, your reputation preceeds you everytime you go for a new job within the industry. 
I certainly don't know anyone who would risk their career, their reputation & future within the industry, just to engage in this kind of thing, lol. 
I can't even begin to imagine how someone who works for a reputable corporation would try to start that kind of conversation with someone that they want to engage in this relationship with, because if it were me, I would be terrified of the other person turning me in for even suggesting it. [/quote]

This is remarkable:

[quote]That's how strictly regulated we are. [/quote]

You cannot be serious.

Nothing you just described as “strict regulation” is even meaningful regulation. Everything you described is self-regulation (“career risk”). That you think "reputation" is “strict regulation” - in the context of the financial industry - cannot be taken seriously.

The language of your appeals to internal self-regulating reads like damage control statements from financial institution spokespeople responding to fraud:

2015 fined 35M for kickback schemes: "Wells Fargo holds its team members to the highest ethical standards and does not tolerate improper activities or failure to comply with rules, regulations or company policies. We have fully cooperated with the CFPB in this matter and have taken strong corrective action, including terminating team members who were involved and enhancing our procedures to provide greater oversight and monitoring of both the process and our team members."

“It’s not 2015 anymore lol. No lender would risk their career…lol”

December 20, 2022: Wells Fargo slammed with $3.7B penalty, in record CFPB settlement
https://www.politico.com/news/2022/12/20/wells-fargo-cfpb-settlement-00074740

“It’s not 2022 anymore lol. No lender would risk their career…lol”

[quote]If this were occurring today, as you continue to imply, word of it would undoubtedly spread like wildfire [/quote]

Correction: “as you continue to falsely imply”. I observed that kickback arrangements in the real estate industry deserve a level of scrutiny higher than other industries like medical.

[quote]No lender would risk scrutiny from the SEC in order to give a kickback to an agent for a referral, lol. [/quote]

8:15-cv-01973-FMO-AFM

[quote]So again, please try explaining to us how entire industries of lenders and agents are getting away with this without anyone else knowing?  To imply this is occurring on a grand scale is absolutely absurd. [/quote]

I've not provided an estimate on "scale".

[quote]You really need to stop believing everything you see in movies and on tv [/quote]

You really need to stop drawing conclusions from false implications.

[quote] because you just sound silly. [/quote]

It sounds silly because you made some false implications and recklessly minimize the significance and existence of fraud.

[/quote]

Thank you for taking the time to respond. I'm so sick of realtors on this board trying to pretend that there's no price fixing or kickbacks despite judges finding there are.[/quote]

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