REO agents under investigation for AG settlement
Real estate agents washed their hands clean from the problems that led to the $25 billion “robo-signing” settlement with the nation’s Attorneys General—but it doesn’t mean that they will not be affected with the issue in any way.
Within the grounds of legal agreement, mortgage servicers are required to justify their payments to external firms that handle everything from documentation to asset management which includes REO brokers and agents who handle the listings.
Real Estate Owned specialists are paid to conduct inspections, provide broker-priced opinions (BPOs), and handle trash-outs and other services. However, the settlement clearly states that these providers should not be paid if they encourage undue haste or lack of due diligence over quality. The spotlight will focus more on BPOs since poor valuation can negatively affect the values of neighboring properties.
At a recent industry event, REO agents and brokers are encouraged to strengthen their businesses as to withstand the scrutiny.
Michael Waldron, a partner at financial law firm Ballad Spahr, warned the 60 REO brokers who attended a panel discussion that the issue will involve everyone and that they will start to feel the effects of the settlement.
Those who have been involved in any way will be further examined.
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