Profile picture for SoCal_Engr

NAR Code of Ethics as it relates to mortgage advice...

How does a Realtor® providing mortgage advice conform/comply with Article 11 of NAR's Code of Ethics? Especially since I often see bad/poor advice being given?

"REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client."

I recognize that this includes the phrase "...to the client." However, Article 11 is contained in the section "Duties to the Public" and is clearly differentiated from "Duties to Clients and Customers".
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 05 2013 - Cerritos
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (7)

Profile picture for Pasadenan
"I suggest dealing with a full time lender local to your area" -

There is a another whole thread on that topic, and it seems to be the consensus that Realtors® are about 30 years out of date on that one, and have gotten the criterion for the two professions completely mixed up.

That is the kind of "advice" that can get an agent sued, as it is typically not covered by their errors and omissions insurance.

Why is the three and local so important?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
Jim I like your response and it always cracks me up when a lender with NO information on the buyer says "Oh, you should go with X program".  Even if you are a vet, it might not be the best loan for that person's situation. Or if you are a first time buyer, doesnt mean you should go FHA. 

And I answer a lot of mortgage questions, but I usually start or end "I suggest dealing with a full time lender local to your area". 

I will also say things like  "My lender just offered  a ___% down with no MI" and that Im not sure if it is available in their area.  

I also (To my clients) will tell them to ask their lender if they would be a candidate to XYZ program, but that the lender will go over their situation, the program and see if it is a good fit. 

I try to stay on top of the programs available in my area, what some of the restrictions are, but I am not a licensed mortgage lender.  I just try to educate my clients on what questions to ask so they can 1. educate themselves, 2. find the best program for their situation. 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
Profile picture for SoCal_Engr
@ Mack -
 
Two more posts than I expected (though I hoped for more).
1 different poster.

Other than that, what I somewhat expected.

Still, I find it interesting that REAs tend to be all over mortgage questions, where the lenders tend to be less inclined to jump domains.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
Profile picture for Pasadenan
"...referring them to professionals is the best policy" -

But if they post on the "mortgage" board ASKING the loan officers, why the dozens of agents posting nothing but "ask a licensed loan officer"?  Isn't that what the people WERE doing by choosing to post in that section rather than in "buying a house"?  What new information did the agent provide?  Wasn't it already self evident that the question was for loan officers and not agents?

Or were the agents only trying to get their contribution count up to get an "all star" badge, or a  "local expert" badge, or only trying to do SEO to get their Google links to Zillow higher up on the Google results?  Wouldn't it make more sense for them to spend time answering questions where they actually had something to contribute that might be worthwhile for others to read?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
I think answering with just general information is the best policy and referring them to professionals is the best policy.  Unless you spent the night in a Holiday Inn Express, I think we should all stay away from the detailed answers and leave it to mortgage people to answer.  I'm pretty new to the business, but have bought and sold several homes over the course of a 27 year military career.  I may have an idea how a VA loan is better than a conventional loan, but I'm not going to tell someone to pick a VA loan just from my personal experience.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
Profile picture for Pasadenan
You already know my opinion on the subject, so I won't bother to post it; though I have posted it many times on various Mortgage threads.

It wouldn't be so bad if they actually bothered to look up the answers before providing blatantly wrong answers.  And if when estimating payments and rates that they made it extremely clear that is was not a "quote", and what assumptions were made, and what the source of their data was.

(And I still don't get the "call me for a referral"...  RESPA states the kickbacks they get are "illegal".)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 05 2013
Let's see how far this goes . . .
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 05 2013
 
Related Questions
NAR Code of Ethics as it relates to mortgage advice...
Profile picture for Pasadenan
Latest answer by Pasadenan
May 06 2013 | 7 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 11570 Dartmouth Dr, Norwalk, CA Home For Sale
    11570 Dartmouth Dr, Norwalk, CA 90650

     For Sale: $299,999

    • Beds: 4
    • Sqft: 1872
    • Baths: 2.0
    • Lot: 5967
  2. 13402 3/4 Village Dr, Cerritos, CA Home For Sale
    13402 3/4 Village Dr, Cerritos, CA 90703

     For Sale: $299,000

    • Beds: 2
    • Sqft: 823
    • Baths: 1.0
    • Lot: 8581
  3. 18810 Pioneer Blvd # 7WLUB2, Cerritos, CA Home For Sale
    18810 Pioneer Blvd # 7WLUB2, Cerritos, CA 90703

     For Sale: $480,000

    • Beds: 2
    • Sqft: 1266
    • Baths: 2.5
    • Lot: --