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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 52 April 2024 F E A T U R E S T O R Y T he Federation of REO Certified Experts (FORCE) is the Five Star Institute's REO member organization comprised of pre- screened, certified, and experienced REO agents. Focused on the improvement of REO agent performance through lender- and servicer-driven education, the FORCE acts as a conduit of communication be- tween the REO agent/broker community and the servicing shops they serve. In the aftermath of the NAR an- nouncement, MortgagePoint spoke with several FORCE-member real estate agents to get their thoughts on the settlement and how it may impact their business and the larger industry. Jesus (Jesse) D. Gonzalez Jr., a Realtor and the Broker/Owner of Liberty House Realty, LLC, issued a statement to MortgagePoint immediately after the news broke. "I see NAR's proposed settlement as a significant moment for the industry. [Liberty House Realty, LLC] sees this as a pivotal step towards more transparent and equitable practices that align closely with our mission of offering a financially sensible solution to homeowners." Gonzalez Jr. said he believes that the industry is on the cusp of transformative change through clearly defined repre- sentation arguments leading to a more transparent marketplace. While eager to see what changes the future holds for Re- altors, he remains curious to see how these changes will trickle down to customers and impact their choices. "At Liberty House Realty, we have always maintained that the homeowner should retain control over their selling process, including how much they choose to compensate their representatives. This proposed settlement may encourage other industry players to consider how they can serve consumers' best interests while preserving our essential services." "While NAR continues to deny any wrongdoing, the proposed settlement and the changes it introduces may open up opportunities for innovation and adapta- tion," Gonzales Jr. concluded. NAR SETTLEMENT: WHAT DOES IT MEAN FOR AGENTS ON THE GROUND? Realtor Jeffery Shumaker, a member of the FORCE Education Committee and Broker/Owner of RE/MAX Agility, said he does not believe that huge changes are in store for Realtors, despite the end of the 6% commission schedule and the $418 million settlement. "For me, it won't change much. I'll use the contract terms to negotiate the buyer's agent commission from either side of the transaction," Shumaker said. "My agents and I have always had buyer's agreements with our buyer clients. The inventory amount will be a determining factor in how much commission is paid by the seller. "This will add an added layer of difficulty since we are now having to negotiate with the buyer directly. However, this should reduce commission issues with the seller completely," said Realtor Caslyn Huck, a member of the FORCE Education Committee and Broker/Owner of Never Settle Realty & Investment. "This adds questions from the lending standpoint also, such as, will the lender allow this fee to be financed, and if the fee is allowed to be financed, will this affect RESPA?" According to Huck, there are some instances where the buyer's agents will credit some of their commission to assist with closing costs, and this settlement may hinder that choice in the future. This will most likely create a tiered system on the buyer side where some buyers may just want contract drawing and submission services, some may want additional fea- tures, including walkthrough and consul- tation services, and lastly, some may want full service, including property showings, and open houses. Nor is this a foreign concept; listings like this already exist. "A type of listing like this is already available with Help-U-Sell and other re- duced-commission brokerages. One of the main components of full-service Realtors is property showings, and this won't be done at a reduced rate, most likely." "The positive takeaway is that this is an opportunity for agents who are knowl- edgeable and professional to shine," Huck concluded. "Unfortunately, in the last few years, the perception of agents (TikTok, Instagram, the Realtor Influencer) is that they do little and get paid too much, but