He is doing Sellers inspections for $149 up to a 3,000 square foot house and selling it to his real estate friends with promises that 80% of buyers will refuse to get an inspection. He expects to do 400 of these in 2009, he wrote one realtor…making a paltry $40K in home inspections…in an effort to boost his sales selling mortgages.
I realize and understand that NACHI is no longer a home inspection association and, rather, advertises itself as the “largest” provider of education etc…but there are still a few home inspectors left in your association that have enough pride in what we do to put heat on members who do harm to us.
Please do what you can to discourage this NACHI member from further damaging the home inspection market in Kansas. Thanks, in advance.
At the very least, it seems to me that if he is inspecting a house that he is lending the money to the buyer to make the purchase, he certainly has a financial interest in the sale of the home. This violates almost every ethic code known to the human race.
Please Note: jbushart is a non-member guest and is in no way affiliated with InterNACHI or its members.
Well I’ll be… I never thought I would see the day, Ole bushie joined the thousands of others on the outside of the window looking in.:shock::shock::D:D:p:cool::mrgreen::mrgreen:
If the inspection is too picky then there is no mortgage. Lenders can make between 1/2 to 3 points a loan, which is way more than the price of an inspction. This does not smell good.
How do you report a potential deal killing defect when you stand a chance of losing the sale points?
I have an email that was forwarded to me where he is offering to do $149 sellers inspections to a particular agent and his brokerage. Another NACHI member reports that he provides cash drawings for realtors. These factors will have to be examined in more depth by Joe Farsetta to determine their accuracy, IMO. I have invited him to look at this, from an Ethics point of view, by email.
But it does not take that deep of an inquiry to find the smell of a rat and to see how offering free home inspections to particular borrowers (no doubt using his incentive for a mortgage sale to connect him to his realtor referrals) should be addressed…whether ethically wrong, or not. It is not in the best interest of our profession to have anyone giving away home inspections.
Agreed it is against the code of ethics!!! I have to deal with that this year also, One of my competitors wife is a loan officer next to a Realtors office, both the broker and his wife refer everyone to her husbands company.
If I blow the whistle I wont get on the list but I need to fix it. Any Suggestions?
Busshy… With out any state licensing , enforced SOP and a COE, what can one do??
Sure you can sic ole Joe F on him, so what, he gets ejected from nacho, that saves enough money to do 2 less inspections a yr.
Interestingly enough…there is a licensing law in effect in Kansas and since it was written by the special interests concerned, it comes as no surprise that there is nothing in the law that prohibits a mortgage broker like Mr. Carter to do free home inspections for his mortgage clients.
1/2 to 3 points is on the front side, an additional 3 points can be added if you quote the client at a higher interest rate.
One great thing about mortgage companies is you can pay for a lower interest rate below market. Right now the premium rate is below 5% if you want a 4% rate you just got to pay more money to the lender.
Blow the whistle on what? Completely different situation. Sounds like he found a great situation. Are you saying he is doing something wrong? Or are you just wanting to take his place as the person that both offices refer to? What would be the difference? Maybe he does a good job.
I agree with Stephen here - two completely different situations.
I wouldn’t rely on NACHI to handle this matter Jim.
If this were CA, it would be a simple matter as this violates State Law (CA Business and Professions Code), and mortgage brokers are regulated by the state - licensed through the Department of Real Estate (DRE) or California Finance Lenders.
A simple phone call would be enough to get the ball rolling on an investigation into such matters.
:mrgreen::mrgreen: