Jeff Pearl Homes AR Blog: Goodbye Mortgage Service Agreements. Kickbacks Kick Back

Goodbye Mortgage Service Agreements. Kickbacks Kick Back

 "Oh, you need a lender? For your convenience we just happen to have one right here in our office". "We might as well get you pre-approved while you're here. Of course you don't have to use this lender, BUT,  they can get things through that other lenders can't". " I've never had any problems with our in house lender."  " Home Warranty, we just happen to have one of those in house as well. They're better than all the other Home Warranty companies out there." " Our in house lender has lower fees than all the other lenders out there."

 Oh, did I forget to mention that my broker gets a kickback from all these companies I recommend? Well, that's not the reason I recommended them. It's just a convenience to you,  uninformed buyer, to have everything you need under one roof.

 Let me steer you down the hall so we can get you signed up for all of these wonderful services we offer.


 Even our broker has some arrangement with BOA. I don't know any of the details, and I have never recommended BOA to anyone. I tell all buyers that they can use whatever lender they choose. If they are buying a fixer upper, I will suggest a few lenders that I know do 203ks. The buyers circumstances will determine which 3 lenders I suggest that they talk to, but tell them that they don't have to use any of them.

 Same applies to home Warranty companies, Home Inspectors, and Title companies. I will suggest a few, but also tell buyers that they can use anyone that they want.

 So this pending doom to MSA's won't really affect how I do business. But, I'm glad to see that it looks like it will be seen less and less in this business. Buyers deserve the truth, they deserve to have all their questions answered honestly without agents feeling like they have to first recommend their in house service companies to the buyers they work with.


Turn the MSA Kickback Switch to Off




Jeff Pearl | Lic in VA

Remax Distinctive


Homes | Land | Farms | Historic



Comment balloon 4 commentsJeff Pearl • August 22 2015 03:34PM


all under one roof seems appealing , and IF the service is great, as good or better than others & the prices are the same or lower... then all good. then of course there is the conflict of interest.. :) good post

Posted by Mike Rock, Granite Bay Luxury New Construction...For Less (Complete Design) over 5 years ago

I work from my home so thankfully I don't have an "in-house" preferred vendor.

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 5 years ago

#1- Hi Mike, It sounds good, but too much potential for abuse. The first broker I worked for pressured all agents to use their in house lender, and if anyone wanted a home warranty, we had to use the brokers warranty company. Even if buyer had already chosen a different lender, we were suppose to talk them into seeing if out lender could beat their lender. It was annoying.

#2- Hi Evelyn, Same here. i'm don't care anything about recommending certain companies so my broker can get a kickback or referral fee.

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

It is exactly how I remember when I worked in big boxed. You had to use affiliated vendors, and they not always could deliver. Now, they will try harder to get the business.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) over 5 years ago