The National Association of Realtors – What A Joke
Brad_Davidson November 24th, 2009
(Disclaimer – I am a licensed California Real Estate Broker but NOT a member of the NAR)
The Orange County Register published the following comments from the President of the National Association of Realtors (NAR) made during their recent convention in San Diego:
San Diego The 2010 president of the National Association of Realtors said that most members of her trade group did nothing to contribute to the global economic meltdown, adding that Realtors “don’t have to do any soul searching.”
Asked at the NAR convention in San Diego if there are lessons for the future about Realtors’ role in the housing bust, Vicki Cox Golder said no.
“For a Realtor to put someone in a property they can’t afford is something we never do,” Golder told reporters at a media briefing. “We don’t have to do any soul searching because our code of ethics is solid.”
The Realtor trade group touts its code of ethics in promotion materials as a strong reason why consumers should hire NAR members rather than using non-member real estate agents.
Although a number of analysts have said that the blame for the housing meltdown is shared by a wide group of players – from Wall Street and lenders to mortgage brokers and even consumers – Golder said that nothing occurred to make her think that NAR’s code of ethics needs revision or better enforcement.
Golder said that there are always a few bad apples in any group, but their numbers are few in NAR.
What a load of crap. “For a Realtor to put someone in a property they can’t afford is something we never do,” I saw dozens of agents do that!! Even as the market was falling like a stone agents were telling people it was the time to buy. Go to an open house these days and listen to agents touting the buying opportunities.
I’ll never forget a closing I went to about three and a half years ago. I was the listing agent and the buyer was having a hard time getting a loan and I had worked with the selling agent to give them extensions to get the loan worked out. I had never met the agent or the buyer but happened to be at her office dropping off some documents while they were signing the loan documents.
This poor buyer was a gardener who had just come from work for the signing. He spoke limited English and was signing loan docs for a $759,000 house with 100% financing and a house payment of about $5,000 per month. The only person in the room who could speak Spanish was his agent, who was a very attractive, buxom, twenty something year old girl with a very low cut blouse. I remember her leaning down over the table explaining the loan docs to him but no one was looking at the loan papers. I walked out of there shaking me head saying ‘Future Foreclosure”. I don’t think he made it a year before the house was back to the bank.
While I think that ultimately, Congress was at fault for the subprime loan debacle by forcing lenders to make loans available everyone, Realtors surely played a part. The mantra was “Buy now or you’ll be priced out forever” and “Don’t worry, you can refinance in a year”. People with limited education and no understanding of basic economic principals (Realtors) were (and still are) giving advice about the largest purchase most people make in their entire lives.
While the NAR touts it’s code of ethics the qualifications to join are rather lax. All it takes is a real estate license, a pulse and $135 for the dues. That’s it. No classes, no ethics courses. You do have to check a box that says you’ve read the code and agree to abide by it. The entry requirements are low and the standards to stay in are even lower.
Brad Davidson – Real Estate Commission Rebates
Sphere: Related Content
Brad, your input is right online. I myself was put into several loans I couldn’t afford. Now, I get to profit. I have an investor purchasing short-sales and the same Realtors that sold these homes are now the same ones earning 4% when it’s purchased and another 2.5% if they bring a buyer who purchases it from our investor at approx 80% of today’s MV.
Chad Ackerson
I’m a firm believer that anyone in the RE or loan business needs to be licensed by the SEC. Why should a loan officer or a RE agent be able to spout off any kind of financial advice (when they’re directly tied to a percentage of the transaction – usually in the 100s of thousands of dollars) without having ANY oversight what so ever?
A great example is the Matt Padilla’s blog when he has that loan broker answering peoples financial questions. Many of the questions are legit loan questions – some should be directed at a financial advisor not a loan broker.
Yes but does this offer opportunity…?
I am looking at alternative new investment opportunities and I have found a new resource for Distressed Debt Investing through buying pre-foreclosure notes through auction. Has anyone been engaged in this activity. One sight that I have found offers auctions on these properties, and I would like to know if anyone has used them or knows of similar websites out there targeting Distressed Debt Investing… Check out http://www.RealtyNoteBid.com and let me know your thoughts…have you used them? Do you know anyone who has? Any feedback? Do you have any other resources / info that might help in my understanding this investment channel.
I am a Realtor, and proud to call myself one. I do however find her comments about how “Realtors never do that” when putting people into homes they can’t afford either really dumb or really naive. I would have hoped considering her position that she was neither. I’m sure you have seen Independents such as yourself pull the same crap. Greed doesn’t seem to have a whole lot of boundaries.
We do have to take Ethics courses to get our license, and we have to continue taking Ethics courses to keep our license. Just a little correction there. Unfortunately, the course is only as good as the person that takes it, just like the person who signs a contract.