In Idaho, can a mortgage lendor REQUIRE a borrower to use a specific realtor or brokerage? My buyer was told
that he would be turned down if he did not use the lenders preferred Realtor. This is a mortgage broker and the loan is a USDA/Rural development loan a portion paid directly to USDA and the balance is a USDA guaranteed loan from a lender. My buyer was told originally that they needed to use a specific Realtor and find a home within 30 days. If a home was not found within thirty days (with assure that using the required Realtor they would) the buyer/borrower would have a 90 day waiting period before they could reapply.
They were told at a public seminar that they HAD to use the Realtors that the lender apparently partners with.
Seems like a blatant no no to me....?
USDA/Rural Development has approved Brokerages that they work with just as HUD does. It is not hard to become an approved vendor. Have your agent call USDA/Rural Development to find out how to get on the approved vendor list.
I would hand that lender and their preferred real estate brokerage over the Idaho Real Estate Commission. That should definitely be a red flag for your buyers. At the least have them shop it through another lender and see if they get the same story.
They may have misinterpreted the lender. No doubt if they got the information from a seminar the lender and the real estate brokerage are going to try and push business in each others direction. I don’t think there is anything wrong with a lender saying the prefer you to use an agent they work with because they know the process. I would also get your Broker involved.
I would say that lender does not value his/her license much. It sounds like steering to me. A person cannot even be required to use a Realtor. I would contact the Department of Finance and report the practice. http://finance.idaho.gov/
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