Just got a listing agreement today for one of my Ocwen properties. They are now asking for a 1.4% referral fee to be paid from the listing broker. They will give you a $700 bonus if you do all your tasks ontime, ie MSRs.

The one thing I noticed is that they are offering 6% and don't specify you have to offer 3% to the selling agent. Does anybody know if it's ok to offer 2.5% , that leaves me 3.5% less 1.4% = 2.1% which is about what I was making before.

These people are crazy if they expect me to work for 1.6%.

It's surprising to me that the lenders are trying to reduce their losses by sticking it to the listing agents. Aren't they the ones that are trying to help you get if off the books?

Doesn't make sense to me.

The buyer's agent always gets 3.00%. Look at the RRES that you have to sign, date and return as part of your listing packet.

Not on this agreement, it's not in there anymore, just 6% to broker. If it doesn't specify, it's mine to distribute as I see fit. We'll see if that's an oversight on their part.

This is an exact quote from the marketing manager in her listing email "Please note: You are required to offer 3% commission to the buyer’s agent. Please make sure your MLS page reflects this compensation correctly".

Unfortunately, they are trying to chop the listing agents at least a couple hundred on each listing.

Nothing on my listing email stating that and nothing in the listing agreement either.

Well you should make sure because you don't want to run to any problems in escrow. They always write in the commissions on their addendum when the offer is accepted.

I always offer 3% anyway.... just saying it wasn't there. I'm sure it's an oversight on their part and it will soon be corrected.

So how many are willing to work for 1.6% if that's the case?

We'll skip and they will lose all their good agents.

You fill in the commission on the addendum not them. They certainly sign the addendum, but this will be a fun test, this house should sell within a week or two and we'll see.

I wouldn't work for those numbers period.

Super, I thought you were one of the agents here that refused to work for Ocwen at all.

Since you're new to REOs, I'm sure eventually you'll get more companies wanting you to work for less than you want. Then you'll have the chance to turn them all down.

1.6%..... plus $700. Depending on the value of the property your selling, you may still come out even.

Once I filled in the commssion on the addendum to reflect 2.5% to me and 2.5% to the selling agent. They changed it back to read 2 to me and 3 to selling agent.

I had a post about this in the other ocwen thread. I emailed my asset manager and he said specifically I get 1.6% and the other agent gets 3%. My new listings is $57,000 so I actually do okay with this structure, but it will suck for higher priced homes.

"Super, I thought you were one of the agents here that refused to work for Ocwen at all.

Since you're new to REOs, I'm sure eventually you'll get more companies wanting you to work for less than you want. Then you'll have the chance to turn them all down."

Yes I guess I am spoiled LOL. My last REO I double ended and made 22k on.

I know that is not an everyday occurance. Yes you are right I do not work for OCWEN. Everyone's business is different on what they will accept or not. I know at 1.5 percent and waiting on reimbursements would not be worth it for the way I run my business.

I am doing 2 deals right now where one I will buy and pocket about 75k on a flip and another I am fixing up for my mom to move into. Old victorian ranch charmer 3/2 for 50k cash ARV of 120k and I will put 20k in it to get it liveable with an after equity position of 50k.

I don't mind giving my all as long as I am justly compensated for it. For say a 150k house 1.5 would be 1,500 commission. In the time I did that my per hour figure would be much higher doing investment activity.

In the flip side the one I made 22k on I spent about 12 hours on so that was a homerun there.

I have total respect for everyone and I say do what you love that brings in the most per hour so we can all live a better life!

"I don't mind giving my all as long as I am justly compensated for it. For say a 150k house 1.5 would be 1,500 commission. In the time I did that my per hour figure would be much higher doing investment activity."

Sorry meant to say 2,250. I have been looking at investment property in Atlanta all day and just have got back into the office.

So what about the minimum? This new listing contract also states that they will pay a minimum of $2500 to the brokers. Does that mean if I sell a $25,000 home that I have to split 1/2 of the $2500 to the selling agent and then minus the 1.4%?

Not minus the 1.4, you'd just split the $2,500 with the buyers agent in the example you gave.

I got an executed contract back on my first listing with the new commission structure. They did give me the $700 bonus. But I had an offer 2 days after it was reassigned to me. It had been listed with them for over 10 months prior. But at least we know they do give the bonus...

You basically have two choices.
As long as I have been in business, I've never turned down an assignement based on the commission.

The commission structure means you need to low ball Ocwen on all the valuations. The pay is so little, the property needs to be priced to move quickly.

The way it reads , seems you don't split the $2500, it is your minimum commission. It is not real clear IMO


The 1.6% is ridiulous, I got one today along with new picture requirements. They are asking for alot for 1.6%, driving to property once a week to take pics and check on property.

Can we bill them for mileage(travel charge to listings for pics)?

I just did a VA (buyers side) the addendum outofilled it to say 3% on a 4k property $120 my side.......LOL I penned in that the seller is to pay $1,000....we will see. I havn't done a VA in a couple years(list or buy)

Bump

I tried doing the 2.5% & 2.5% in the OLD Addendum A and they changed it back to 2% & 3% but when I filled out the NEW Addendum A with 1.4 to the Referral, 2.1 to my company, 2.5 to selling broker, plus the $700 management fee.... they left my numbers alone. I expect I'll get paid in accordance with those terms. YAY!

I just go one of my listings challenged by the asset manager after I emailed in the MLS sheet, she said change the commssion to 3% on the buyer's side. I refused, referencing the agreement that in lieu of specificity the listing broker decides. We are going back and forth and she suggested I direct a letter to management which I will do.

I have another in escrow with the new structure and I have put the 1.4/2.1/2.5 split and the AM has accepted. I'm not sure they know what the policy is over their, but I expect the agreement will change soon and we'll see the familiar 3% back in.

I'm curious how many of you will work for the 1.6%, I'm on the fence, as a broker, I keep all of it and with the extra $700 (if I get it) on a $200k house, I still make 1.95% which is about what it was before and with other companies. On a $100k deal, it's 2.3%, again consistent.

Hello Status and Dr.Reo, please let us know how's your commission paid after your closing, we hope you get 1.4/2.1/2.5 plus $700 at closing, any updates after closing will be helpful to us

Here's a tactic for you: Just send them the client version of the listing. Then follow status's advice above. Remember, you are dealing with the most overworked AM's in the industry.

That's a great idea!

On a funny side note about Ocwen, I called them yesterday to make sure we were registered to get listings from them. The woman on the phone said she would check and email me the status. Well, she emailed me information on submitting reimbursements. Not sure what to think of that. haha!

Thank you Dr REO. And I'll have you know that I didn't get to be a Rocky Balboa look-alike for nothing !

Get this one. I have a 35,000 property. My asset manager... which I can't pronounce his name... wanted me to cut my commission so they wouldn't take such a loss. Yeah sure... no problem... They are already taking the 1.4 or 1.6% from me. This is not a good property, not in a good neighborhood. Throw me a bone! I have not gotten one over 100,000 from Ocwen! Split that with your broker, and you are a rich man!

I have one (soon to be in escrow) that I had an original listing agreement on that said 2%, the last extension I received had the new comission structure. When the AM asked me to send the buyer documents, he asked me to send the original listing agreement.. Interested to see how much I actually receive. Sometimes I honestly think they are just trying to confuse us with all of this...

Status

I did the same thing and they left it alone, so I am covered 2.1% plus the $700 property management fee

What did I miss? When did this $700 property management fee come about? I noticed it today on a addendum from where I was the selling agent and I saw the listing agent was getting it. I never got this before when I was the listing agent....

if you think thier REO is bad you should see their short sale's. 4% max. even if they hold the second and will not recieve a penny anyway!!!

Ok, now I got an AM that changed the commission on the addendum to reflect my commission at 1.6%, referral at 1.4% and the selling agent at 3%

When I put it in the MLS I advertised selling commish @ 2.5% so I could make 2.1%,(there is nothing in the listing that says I have to offer 3% to buyer's agent.

So selling agent filled in 2.5% commish and the AM changed it to 3% and mine to 1.6%

This 2.1% worked on another deal and a different AM, it really makes me mad, the other agent is fine with the 2.5%

Don't get me wrong I am happy to get the listings but damn I work hard to get these properties ready and sold and now 1.6% come on.

Anyone else tried this? offering 2.5% to buyer agen, I re read LA and nowwhere does it say offer 3% to BA

Be aware agents; I have a listing with them after they accepted an offer they changed my commission from 2% to 1.6% and no $700 for management. My listing agreement with AM is for 2%. I let the AM at Ocwen know that if they don’t honor their own listing agreement I will have my attorney handle this for me.

It sounds like it depends on the AM. If you're lucky, they will leave it at what you have written in on the addendum. Or, they might choose to change it back to 1.6%. I don't see anything on the listing agreement itself that says it's got to be 3% to selling broker but I'm sure they could point to it somewhere if they wanted to.

Why should it be up to the AM? Aren't listing agreements contracts and legal and binding? Why should Ocwen not be legally bound by a contract between them and the Realtor? Is it legal that they change a Realtor's commission once the property is under contract and then not honor their own listing agreement and reduce the commission even more? I'm really angry with this situation. I'm tired of Ocwen and the way some of their asset managers seem to not know what they are doing or even what their own broker manual says let alone their listing agreements. Now, I've had some great asset managers on the VA side of it.

Exactly - The commission belongs to the listing broker and it's up to him/her to dispurse as he/she sees fit unless specified to the contrary. They cannot change your commission folks, they are bound by the listing agreement just as much as you are. They can however cut you off and never give you a listing again. We're talking about Ocwen here though so that may be a blessing in disguise.

Can anyone tell me if the $700 management fee is direct deposit?
Or does it get paid with the commission?
Thanks!

Good question!, if it is for the maintenance of the property such as the mowing, electric and all the other headaches...then I shouldn't have to split this with my broker, right?

Fat chance on that though...

does anyone have a copy of the new commission structure? all the emails im getting from them show the old structure.

thanks!

I have a signed listing from June. With the old Structure... we had a deal and it fell apart, three days on the market, ten showings later. New deal. Now the asset manager wants me to fill out July 07 Addendum A which has a special space for the Property Managment fee. I submitted the old that I aleady had filled out. Frankly, I don't see how they can cut my commission after they signed a listing with the old structure. But then again, they pretty much do whatever they want.

It is paid through escrow.

Fill it out with the old commission due you on the listing agreement and leave the prop mgmt section blank. The new addendum doesn't change your listing agreement.

so does anyone have a copy of the new commission structure they can send me? i never got one.

also, as for the bonus, did you all ever find out if its direct deposited, or sent with your commissions?

There isn't really a structure like there used to be. IT's just part of the listing agreement. It says the seller will pay 6% or 5.75% if the purchase price is over $500k. The broker will pay a referral fee of 1.4% of the purchase price and the minimum commission is $2500. That's about it. It does not state what the co-op has to be (at least mine doesn't).

I have zero experience with them but do have a question. When the gods smile and you double side an Ocwen listing, do they mess with your buyer's side commission?
Jim

when you get a price reduction or a listing extension, they will send a whole new listing agreement that will have the new amounts -- i have one closing next week where they have sent a note to the title company to pay out 3% to the buyer's agent - i have let the title company know, along with sending them a copy of the new contract, that it is not stipulated how much to pay the buyer's agent and we are paying them 2.7% - i guess we'll see who they listen to in a few days -

so my first closing since this took effect, and when the commission came in, not only was there no bonus, but it also reflected the old commission structure.

our closer said that all the paperwork they received from Ocwen showed the old structure, so they acted accordingly. there is nothing that can be done now, except try to get Ocwen to redo paperwork, which I know there is no way.

Not even sure what to do on this. It plainly says on my listing contract the new structure, and I have emails from my AM stating i get the bonus as well.

That blows Stl. Unfortunately, Ocwen is a circus and short of paying off the clowns you'll probably end up with peanuts.

the old commission schedule is better -- no 1.4% kickback to Ocwen -- you're unhappy or happy STL? and who is the title company? shouldn't they be going by the listing contract you submitted to them -- or called you if they were unclear about pay-out? since when does the seller decide who pays what to whom -- should be by listing contract and if not mentioned in contract, left up to the brokerage (as to buyer's agent pay-out) -- was it a national title company?

I have an old listing agreement and an executed contract with a sales price under $200,000 which is supposed to pay 2.20%. When the seller signed the addendum, my commission was changed to 2%. I have emailed and called the am several times regarding this issue and he chooses to totally ignore me. I even sent him the listing agreement that clearly shows I'm supposed to get 2.2%. He does however answer emails relating to other issues but if I mention the commission in the same email, he ignores it. The escrow is closing soon. Would you pursue by going to his upper management or would you let it go?

curious - the old agreements were based on the list price (at least mine were), not the sale price. You might want to double check the commission addendum that you signed and see if the commission they are paying is correct based on the original list price.

Thanks for the feedback OHAgent. I think I understand now. What I don't understand is why the AM couldn't respond to me and tell me I'm wrong and refer me to that line in the Addendum. I understand they are busy but after 5 emails you would think I would have received a response. This listing has been way over-priced from the very beginning and it took forever to get a price reduction to be in line with the current market. I was not involved at all with coming up with the list price. Everytime I questioned how the list price was determined, I received no response. I received a message one day asking me to verify if the utilities were on. This was before there was any mention of getting the listing. I really appreciate you taking the time in helping me resolve this issue.