Can the new Calif law discourage rampant BPOs for REOs?

[Mark K]

Mark-

Couldn't the same be said when a listing agent runs a BPO for any seller?

Certainly.

I think the line gets crossed when the broker is providing an opinion of value for a fee, essentially the same as an appraisal. Many states have laws allowing brokers to perform CMA or BPO's, as long as they don't charge a fee, in the process of a listing presentation. (In this state, a real estate broker is allowed to perform fee appraisals as long as they adhere to USPAP.)

Many of the brokers performing BPO's are completing dozens of these every week on a fee basis. They are doing appraisals and I'm guessing that the state wants to clarify that they can work as either an appraiser or broker, but not both on the same property. If they are being paid to report a value, i.e. working as an appraiser, then they should be bound by "no personal bias or interest" certification.


I'm sure the brokers will simply refer the listings to a partner or subordinate. They'll get around it in some way.

 

[Pamela Crowley (Florida)]

I have no problem with real estate BROKERS doing BPOs.
THEY SHOULD NOT BE PAID FOR!!!!!!!!!

 

[Tudor]

Denis,

Anything to help curtail unethical behaviour is good, it is too bad that laws need to be passed for this instead of just rules from the licensing professions.

This may seem to be a harsh law, but they brought it upon themselves.

 

[hastalavista]

Denis,

Anything to help curtail unethical behaviour is good, it is too bad that laws need to be passed for this instead of just rules from the licensing professions.

This may seem to be a harsh law, but they brought it upon themselves.

Unfortunately, the link Moh provided to the article has no analysis and only has the same summary he posted so I cannot discern the reason (rationale) why the second provision of the law is needed? Who is complaining and who is being harmed? Without knowing the intent and purpose behind the law, I'll rely on my default position that any new law needs to have a compelling reason to be enacted; I see none for this one! :new_smile-l:

As Elliot and Mark have already said, I think this provision has no legs as the Realtor lobby will stop it in its track.

 

[MARK JOLLIFF]

When you say she was making 50k per month in her heyday, was that from just real estate sales, or was she getting income from BPO type products as well as selling real estate???

No.I should have been more clear. She is a mortgage broker. She had 8 loan officers in her mortgage shop plus the loans she did herself. She made even more from flipping properties. She also opened up a Help u Sell that's now closed.