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Lender Kickback?!

Filed a complaint against my former RE agent for a litany of issues. My state's RE Commission found "probable cause" for material fraud and some other things... exactly what I expected. What I didn't expect was also finding PC for what appears to be a kickback. I'm stunned, lol. Not really, absolutely horrid experience during my tenure with him. Surprised is more like it.

I was selling and then buying, so I also used him as a buyer agent and already had my lender working on my new mortgage. Three quarters through, my lender can't finish the mortgage due to changes in the process re Covid and offered to reach out to find someone who could. I mentioned it to my agent who suggested a lender he uses. Said lender was also doing the mortgage for the buyer of my home (unsure if that's significant) and I jumped on board. I was perfectly happy with the new lender, thought she was fabulous. I did make a reference in the complaint about having to change lenders, but it wasn't anything I was complaining about, it was contextual.

The Commission hit him with referring me "...to any lending institution for financing with the expectation of receiving a financial incentive, rebate or other compensation, without first obtaining from his or her principal the signed acknowledgment of and consent to the receipt of the financial incentive, rebate or other compensation." WTH? Not to give my prior agent any credit, but I was happy with changing to his preferred lender, and it's not like the agent ever tried to coerce me into using her out of the gate. I assumed the referral was based on a solid professional relationship between the agent and lender. But this language sure as hell sounds like a kickback.

Anyone have any insight on this? I never disclosed the full name/company of the new lender within the complaint.

submitted by /u/Rmzrad
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/kniqdd/lender_kickback/
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