We have teamed up with several Brokers across the US for an exposé dealing with the seedy underbelly of how the US Department of Housing and Urban Development (HUD) deals with the Awards it issues. The Brokers we are interviewing are opening a door to a world generally never seen nor heard about due to fears over loosing what little meager Commissions exist.
In interview after interview, with specificity to PEMCO, we are finding that the rules which require assignment of properties to local brokers appear to occur in an arbitrary and capricious manner. Brokers are telling us that even when Complaints are routed all the way to the Weaver Building, HUD’s Washington, DC, Headquarters, they fall upon deaf ears.
As if to complicate matters even more; the additional fuel upon the proverbial fire, FannieMae (FNMA) has been requiring Brokers to destroy Inspection Reports! FNMA is additionally requiring that “…agents agents to lie and violate their MLS rules by keeping short sales as “Active” even after there was a binding contract to purchase the property.” Bank of America (BANA) had the same policy going on which triggered an outcry from the Broker Community back around 12 February 2013.
From BANA: The following information is to revise and provide additional clarity on the Multiple Listign Service (MLS) Requirements message that was sent on Feb. 11, 2013.
- Listing the property on the MLS is not a new requirement in the short sale process and has always been a component of our fraud review.
- The listing requirement demonstrates that the property was listed on the open market and the offer received represents an open market transaction. We recognize that listing status classifications may differ by locale and are subject to local or regional MLS requirements. Brokers should follow MLS requirements at all times. MLS statuses such as Back Up, Contingent or Pending may be acceptable. Ensuring that the listing remains on the MLS until an approval letter is issued will help you show that the property was on the open market.
- How the property is marketed is a decision determined by the Seller and Listing Agent, however, caution should be exercised in using terms like “cash offers only”or “property is ineligible for financing”. This kind of verbiage can be considered an attempt to exclude a financed buyer and lead to a delay in processing the short sale. All offers are subject to investor approval and are reviewed on a case by case basis.
We haven’t even crossed over into the nebulous world of the Short Sales and FNMA! Let me tell you folks, Brokers are really, really getting the shaft! They are required to generally front the costs associated with evictions, utilities and repairs depending on the situations. With some Brokers toting tens of thousands of dollars and praying to whatever G-d they believe in to grant their extremely low, single digit Commissions, it is a wonder any of them are still in business! We are reaching out to the Brokers ahead of publication because we want to pay special attention to their plight. Foreclosurepedia believes that Contractors and Brokers alike have a common problem: The HUD Management and Marketing (M&M) Contract and its implementation with absolutely no meaningful oversight whatsoever!!!
Unlike the rest of the Property Preservation Industry, Foreclosurepedia believes that the successful partnerships of the future will include Consortiums comprising Brokers, Contractors and Investors. Foreclosurepedia wants to spear head this New Model. The 21st Century Consortium which succeeds will be lean; ISO 9000 Lean! We want you onboard and onboard TODAY!
If you have anything to contribute to our Article; NOTHING is trivial, please do NOT hesitate in reaching out! I will take your name(s) to the grave with me! These problems need to be publicized; attention needs to be drawn to the seedy underbelly which is decaying the Industry! What is going on; the unregulated and corrupt practices on both the Asset Management (AM) and Field Service Management (FSM) sides of the HUD M&M and additionally the pre conveyance side, pose a clear and present danger to the National Security of the United States. We cannot afford another meltdown! Reach out to me today and let’s talk; reach out to me today and make an Inquiry as to the Consortium taking form and become an integral Member of an Organization that runs silent and deep. Get the Commissions you deserve and help fix a broken System!