Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 

  Current Housing Indicators
CURRENTPREVIOUS
Existing Home Sales4.49m4.74m
New Home Sales309,000344,000
Housing Starts583,000477,000
Building Permits547,000531,000
HMI9UNCH9
Existing Home Prices$170,300▼ (annually)$199,800
New Home Prices$201,100▼ (annually)$232,400
 
Realty Check Video Gallery
CNBC's Diana Olick has the latest real estate headlines.
Discussing whether home prices will go up in 2010, with Kenneth Rosen, UC Berkeley Haas School of Business; Matthew Garr...
 
HOMEBUILDERS TOP 10 INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

REALTY CHECK VIDEO

» More

Current DateTime: 11:58:03 16 Nov 2009
LinksList Documentid: 30871294
Expiration DateTime: 11/17/2009 12:00:34 AM

RSS FEED

» Help

Current DateTime: 11:58:03 16 Nov 2009
LinksList Documentid: 30871303
powered by digg

Realty Check

Text Size
Nov.05
12:17 PM ET
Monday, 5 Nov 2007
Long And Foster's Mortgage Tactics: A Desperate Move

CNBC.com

An interesting piece in the Washington Post today about Long and Foster, which is DC’s largest residential real estate brokerage. The founder, P. Wesley Foster Jr. apparently sent out a memo to employees, criticizing them for using outside mortgage lenders over the company’s own Prosperity Mortgage, a joint venture with Wells Fargo[WFC  Loading...      ()   ].

Consumer advocates argue it will put pressure on employees to in turn pressure their customers, thereby limiting choice, and some Long and Foster employees say they feel using the in-house lender creates an appearance of impropriety, especially if the choices offered are not in the clients’ best interests.

But Foster reportedly told employees that using Prosperity helps Long and Foster, which in these down times in housing, is suffering like everyone else. In other words, push the in-house mortgage company to save your job.

Not surprising, given what’s happening. As much as we talk about homeowners in trouble and builders in trouble during this housing recession, realtors, understandably, aren’t faring too well either. Over the weekend, Fred C. Sands, a California real estate mogul, told a gathering of industry professionals that the housing market is “pathetic,” and that they should start checking out the want ads.

According to the LA Times, Sands told members of the California Association of Realtors, “If you’ve been in it for five or six years and are barely making a living, you might want to think about what you were doing before and get back into it.” How’s that for hope?

Still, I think the Long and Foster tactic is decidedly improper. There’s nothing wrong with offering a buyer the option, letting them know that the service exists in-house, but to try to pressure the agents, using their own job security as a weapon, frankly reeks of desperation.

Questions?  Comments? 

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:12:16 16 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:28:53 16 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 07:02:14 16 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:42:55 16 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters