New Home Buyers Will Soon Be Free To Choose

By
Real Estate Mortgage Broker with America's Mortgage LLC

I read an article this last week about the new RESPA changes coming into effect on January 16, 2009 and the revisions to "Required Use" definition will have HUGE implications to new home builders. How so?

Home builders will no longer be allowed to offer special financing or closing cost incentives to their clients if they use their preferred lender. Builders must offer these incentives to every buyer no matter what mortgage company the buyers choose! Yeah!  Builders can no longer require the use of a certain settlement provider such as a mortgage company when offering any discounts or incentives.

Your buyers will soon be free to choose their lender when buying a new home!

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Colorado

Comments 9 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the woman to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
995,711
Karen Anne Stone
Fort Worth Real Estate
New Home Hunters of Fort Worth and Tarrant County

Loren:  It's simple.  If the buyer uses the builder's lender, the builder profits.  If they use you as their lender, you profit.  You cannot change the rules of the game and still expect the numbers to still be the same.   Nothing is free.

December 17, 2008 12:23 AM
Rainmaker
995,711
Karen Anne Stone
Fort Worth Real Estate
New Home Hunters of Fort Worth and Tarrant County

Lonnie:  As far as a builder requiring the use of a certain settlement provider... you are opening the closing up to all sorts of problems, including higher costs... which in the end, the buyer must pay.

December 17, 2008 12:24 AM
Rainer
134,328
Mike Michaud
North Texas Help-U-Build

The buyer always had the choice.  They could choose the builder's incentives by using their preferred lender, or they could use their own and forego the incentives.

Of course, if you were really up on the numbers that the builder's lender was using, you could show where the 10K in incentives was coming from. 

Juice the rate a .25-.375% over a 30yr and I can get you the same kind of "discount".  

We all know how the game is played.  

 

December 17, 2008 12:49 AM
Rainmaker
389,376
Richard T. Dolbeare
R(B), ABR, CRS...Hawaii Multi-Island Specialist
Keller Williams Realty

I haven't seen those kind of requirements here in Hawaii.  It's a shame if it's been going on elsewhere!

December 17, 2008 01:00 AM
Rainmaker
295,831
Dan and Amy Schuman
Luxury Home Specialists
Howard Hanna Real Estate Services

I haven't heard about the new RESPA changes but l like them. I was on the mortgage side of things for 15 years and often had clients who wanted to use me but feared the builder would react negatively if their preferred lender wasn't used. I realize builders are hurting too in this economy but I don't feel bad for them and welcome the new changes.

December 17, 2008 07:18 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
25,375

Lonnie Glessner

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clip to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: