Real Estate Brokers Lending Service (REBLS) is offering to give real estate agents the whole loan origination fee when their clients use the lender/broker's service. In case you are worried about the ethics, RESPA says it's all okay, says the site.

To make it easy for agents to participate, the site offers a free logo and link for agents to add to their Web sites and returns the favor by placing the agent's link on the REBLS site.

Licensed to do business in 15 states, and anticipating licensure in the remaining 35 within the next six months, REBLS is one of the new breed of lender/brokers who is taking to the Internet to originate loans for consumers. By giving valuable loan content and a one-stop-shop online storefront to real estate agents, the company is helping to get more loans directly from the Internet, while providing value to the agent and the consumer.

What's in it for the buyer? The company promises to match or go below a loan index compiled by watching the interest rates of the top 15 lenders in the nation, offering competitive rates. A new feature which will debut shortly will offer online loan approval in 15 minutes. Buyers will also be able to calculate the interest rates and monthly payment amounts for the agents' online listings. REBLS also does not have a cap on the types of loans it offers. The company will do "A, B, C, and D paper loans," so credit problems or special circumstances such as self-employment won't preclude buyers from qualifying for a loan.

What's in it for agents? The loan origination fee is generally one percent of the loan amount, which can put as much as $1,000 or more in the pocket of the real estate agent who sells a median average priced home in the U.S. In order to collect their fees, the agents must adhere to the Real Estate Settlement Procedures Act (RESPA) guidelines and provide full borrower disclosure. A company spokesperson says that RESPA audits them every three months for compliance.

Agents can also offer value to sellers. REBLS just signed an agreement with First American Title in which REBLS real estate agent customers will receive a discount on some title services. Another agreement with United Van Lines will offer between 52% and 60% cost reductions on moving services. Relocating families will also receive free replacement value insurance for their moved items, a value of $498.

According to the company, REBLS is possibly the only company which has presented its business plan to RESPA for operating a national mortgage company designed specifically to provide this service to real estate professionals and pay them the loan origination fee. RESPA approved the plan in 1997.

To operate under RESPA guidelines, REBLS must comply with "all the normal state business licensing requirements, state financial institutions' requirements and state real estate division requirements to legally offer this new service."

In December, REBLS plans to be completely automated. Currently faxing most of its documents, the company is planning to launch a new on-line wholesale e-mortgage site specifically for real estate professionals which will feature a trademarked five-step processing system that automatically organizes and manages all parts of the loan process between the borrower, the real estate professional and REBLS to guarantee full compliance with the new RESPA guidelines.

Published: October 27, 1999

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