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Center Mortgage Broker
Mortgage brokerage often exists in a gray regulatory area.
Federal law (FIRREA) impacts primarily federally chartered
lenders, and, those lending transactions that are federally
governed due to the nature of the loan or the market into
which it is sold.
For decades, far too many mortgage brokers, often without
realizing they were participating in an improper activity,
have demanded that lenders and appraisers cooperate in creating
transaction volume by obtaining valuations that supported
the purchase price arrived at between seller and buyer. Many
brokers believe that, "whatever a seller and buyer agree"
must constitute fair market value.
The impending liability of this issue for brokers is similar
to that faced regarding all varieties of predatory lending.
Billions of dollars of liability could be involved where it
can be proven that mortgage brokers knowingly influenced a
valuation result that was materially inaccurate.
The Center for Responsible Appraisals and
Valuations
The National Community Reinvestment Coalition
(NCRC) is the nation's largest consumer interest group that
focuses on real estate lending. A coalition of over 600 local
consumer groups, we are dedicated to ending the valuation
abuse that has become a major form of predatory lending. We
have formed the Center For Responsible Appraisals and Valuations
to accomplish together what legislators and regulators have
failed to do.
The center has created a Code of Conduct, with
voluntary compliance agreements for industry participants,
that reinforces the federal and state laws, rules, regulations
and guidelines and gives signatories a means of Alternative
Dispute Resolution (ADR) when they claim that they have been
harmed by a breach of that code. By becoming an center signatory,
a mortgage broker agrees to that code of conduct and to the
alternative dispute resolution method that has been created
through the American Arbitration Association (AAA). This method
offers complainants an online, quick and inexpensive means
of reaching voluntary resolution with a respondent. Where
necessary, specialized mediators will be chosen to assist
in the settlement of disputes online and by phone in an inexpensive
and time efficient manner. Finally, if all efforts fail, the
parties can choose to have a more formal arbitration of the
dispute, under modified commercial guidelines of the AAA.
Participation and Benefits to Mortgage
Brokers
Signatory mortgage brokers pay a nominal fee
for participation and receive the following benefits:
- The ability to file claims against third party referral
sources or others that have Improperly Retaliated against
them for refusing to give in to improper influence of the
valuation process.
- Publication of their signatory status in the center signatory
lists that will be promoted in national and local media,
press releases, web listings and to all 600 plus center
local affiliates. The center will be launching a national
campaign to convince consumers to only deal with lenders
and brokers that are center signatories.
- The ability to respond to claims of improper influence
and retaliation under the alternative dispute resolution
methods. Non-signatory mortgage brokers will be placed in
the position of having to respond to complaints through
regulators, organized consumer and center local affiliates'
activities. Alternative dispute resolution can only create
injunctory relief and not monetary damages and, thus, the
mortgage broker need only remediate instances of improper
conduct rather than face claims of monetary damages from
center signatories.
- The ability to compel review of what is believed to be
poor appraisal results through the center review process.
Cost of Signatory Status for Mortgage Brokers
Less than 10- $500 per year
11 to 100 - $5,000 per year
101 to 500 - $25,000 per year
501 or higher $50,000 per year
Cost of Complaints
File a new dispute: $125
To Find Out More
click here or call us at 866-244-9708
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