Wells Fargo recently announced that it will immediately start to cut back on its marketing services and desk rental agreements with real estate firms, builders, and other referral services. What could this mean for realtor and mortgage company MSA’s?
For starters, it seems that Wells Fargo is developing completely new options for keeping their relationships afloat over time. The reason this came into play was a growing uncertainty of the oversight given by those who occupy these current arrangements.
Last January, Wells Fargo and JPMorgan Chase were involved in multiple illegal marketing services kickback schemes with a defunct title company. Loan officers were provided cash and services in return for referring homebuyer closing services. After recent enforcement decisions by the Consumer Financial Protection Bureau (CFPB), they decided on these cutbacks.
Important Marketing Agreements such as these have become very common in the real estate industry. What affects these two giants pulling out of their agreements will have on the rest of the market will be a test of time.