CFPB Audits and NAR Settlements

Well, I guess you had to say we saw this one coming. The CFPB is going to start looking into and auditing some of our larger brokerages out there. Now, I've got to say, I thought this would have happened a few years ago. I think this whole thing has to be expected, should have been expected by everybody. Now, we all know who the largest brokers are, the most vocal brokers out there, so here's what we're hearing. Now, we'd like to thank the Broker Action Coalition for meeting with the CFPB and posting what they learned. Anyways, here's how it goes, and it's pretty much what we thought. Larger brokerages should be prepared for a CFPB audit and get their ducks in a row. If a brokerage advertises shopping multiple lenders for the best interest rate and sends most of their business to one lender, I wonder who that might be, then that might be a problem. Brokerages should note that the reason they sent every loan to the lender that they sent it to. The anti-steering agreement should have options for three different lenders. The reason for transactions going BPC should be noted as well, and expect scrutiny on regulatory issues that exist at a federal level but not a state level. Examples include, but are not limited to, varying comp plans, uh-oh, between lenders, varying comp between state regions, and BBC scrutiny related to LO comp. All of this stuff, again, we had to see it coming. We knew it was all going to be here, and I say it's funny because, I mean, everybody knows what wholesale lender we're talking about here, but nobody's gonna say their name. It's kind of like Valdemort. Remember that in Harry Potter where you couldn't say his name? Listen, this was inevitable with the ever-growing nature of the brokerage space. Understand, though, that everything government costs more money and requires more work. So are brokers about to be more regulated or just more inspected, and does it matter at all? Let us know what your thoughts are down below. Now, in a similar vein of enforcement and oversight and all things regulatory and affordable and costly, the National Association of Realtors and Friends just settled their lawsuit with Missouri, and the courts have finalized it. Here we go. The courts granted final approval to the NARS Commission Lawsuit Settlement Agreement, as well as a settlement reached by Home Services of America and the numerous multiple listing systems and brokerages who chose to opt into the National Association of Realtors settlement. So all those big numbers that you're hearing about, all that money that was going to be paid out, well, it's now time to pay that money out. Now, if you're in Texas, in the Austin area, look to your local bars on the outskirts of Austin, Texas, and there's a good chance you'll find Gary Keller playing a guitar, doing shots of whiskey, maybe crying a little bit, and trying to write songs about how much he wants to kill lawyers. Or at least that's what I would be doing if I were him. I mean, think about that for a second. His entire life's hard work only to be stolen out from underneath him by a bunch of ambulance-chasing lawyers. At least that's how I see it, too. Anyways, final approval, it's finally approved. Or is it now? The DOJ is still making a stink. After the approval went through, the DOJ came out and said, quote, it bears a close resemblance to prior restrictions among competitors that courts have found to violate the antitrust laws and other proceedings and could limit, aha, limit, rather than enhance competition for buyers among brokers. This is getting juicy and salacious. Meaning, if the Trump administration comes in, it doesn't make any significant changes over there to the DOJ, and he probably is going to. But if he didn't, then the real estate industry might be looking for the second fight in what's probably going to end in a three-fight trilogy, like all good fights do. And more to that to come in the coming days. But it's only if you subscribe and you share this show are we going to let you know what happens then. Hope you have a great Thanksgiving, and we will talk with you soon. Adios, amigos. Hey, listen, Brian Stevens over at the National Real Estate Post. You know, it is one day away from Thanksgiving. I've got my plans, I know you got yours. It's a good time right now to sit back in this industry and think about what you're grateful for. It's been such a rough darn year and so many things that we can go ahead and throw daggers at, but every now and then we just have to sit back and say, you know what, I'm still here, I'm still fighting, and I'm grateful for it. Got to tell you, my friends over at the Marketing Animals, Frank Ray, my partner of almost two decades, and Carl White, my longtime friend, those guys do such a great job over there. I'm kind of grateful for who they are and what they do. They've made life easier over here for me, and they'll make life easier for you. Check those guys out. See what they're doing. Might help you out.