CFPB as HUD: Another Section 8 Consent Order Displays CFPB’s RESPA Approach | Morrison & Foerster LLP – JDSupra

In the Consent Order, the CFPB claimed that Lighthouse entered into marketing services agreements (“MSAs”) for advertising with parties such as real estate brokers, and made payments related to these agreements based on the “volume or value of business referred” by such counterparties. As a result of this practice, the CFPB alleged that Lighthouse violated RESPA both for entering into the MSAs and for varying the fees it paid based on the referral of business provided by the counterparties.  http://www.jdsupra.com/legalnews/cfpb-as-hud-another-section-8-consent-o-51123/

Advertisements

Bubbles, Booms, and Cash Flow by Bert Stratton, City Journal 28 August 2014

My adult daughter and I recently tried to buy an apartment building on Chicago’s North Side, the Promised Land for Big Ten kids from the Midwest—they go to Chicago after college for four more years of life in the post-college bubble. We looked for buildings in Lakeview and Uptown, both up-and-coming North Side neighborhoods. (My family looks at buildings for a living. I’ve been in the real estate business since 1976.) We “ran the numbers” and concluded that in North Side Chicago we could get, at best, a 5 percent capitalization rate, meaning that we could expect rent payments after expenses to add up to only a 5 percent return.

http://www.city-journal.org/2014/eon0828bs.html

Why Overpricing A Home Creates Damaging Effects

http://www.maxrealestateexposure.com/damaging-effects-of-overpricing-a-home/

“You might be thinking why in the world would a Real Estate agent want to take a listing they have no chance of selling? A Realtor who purposely tells a seller their home is worth more than the true market value does so for a couple of Reasons.

The first is using your home as an advertising vehicle to pick up buyer clients.The second is a strategy designed to get you to sign a listing contract with them because they can’t beat out a good Real Estate agent otherwise.”