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Mortgage Rates
30 Yr FRM 4.78% -0.05%
15 Yr FRM 4.29% -0.03%
1 Yr ARM 4.35% 0.00%
5/1 Yr ARM 4.18% -0.07%
30 YR Tres 4.23% -0.02%
Fed Prime 3.25% 0.00%
 
Q: Some real estate companies in my town offer only one choice in some settlement service categories, like; mortgage loans, title insurance, property insurance and home warranty contracts. The "preferred" service providers pay for the rights to
  • A Real Estate Agent or Broker cannot make you use any specific settlement service provider such as a specific Mortgage Company, Broker or Loan Officer, Title Insurance Agent, Home warranty provider or Insurance Agent.  This is a clear violation of RESPA (Real Estate Settlement Procedures Act).  This could also be a violation of your State Banking and or Insurance laws.

    A Real Estate Company can only recommend that you use a certain Loan Officer or any other service provider; when recommending a settlement service provider the Realtor should always give you a choice of 3 or more to choose from.

    I would ask to speak to the Real Estate Broker and explain what the Realtor has told you.  You may find out that it is not a company policy but a Realtor doing this on there own without the knowledge of the Real Estate Broker.

     


    Answer Submitted on Tue, Nov 25 2008

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    Answer Contributed by: Mark Ganovsky
    If you have any further questions pertaining to mortgages please feel free to contact me. I am knowledgable in FHA both forward and reverse mortgages, VA , Conv Mortgages and USDA rural development loans. We are licensed in all States except Hawaii and Alaska.
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