What if mortgage companies decided to open their own real estate firms...

Hasn't this kinda happened with GMAC?

no.. not really. that's more of a franchise.

i'm thinking smaller mortgage companies and mortgage banks developing their own firms, and rather than them relying on agents for business they capture the mortgages and brokerage business.

pretty sure there is a law against that... Credit Unions however fall under different guidelines

Nope. Perfectly legal. Not talking banks but mortgage companies. Banks will probably get in someday... there is no reason for them not to except the NAR lobby.

There is a bank in SD or ND that offers to sell customers homes for them for a flat fee... not sure how they do it but I saw it online awhile back.

There has been a lot of controversy over banks getting into the real estate business over the past decade. Presently the law forbids banks doing real estate. However, Broker originally posted if mortgage companies were to get into real estate. I am not aware if mortgage brokerage companies are exempt. Maybe someone can shed some light.

It would seem to me the banks have been kept out of the real estate business due to the fact that law makers look at the banks doing financial activity and real estate companies doing commercial activity and in the public's best interest "never the twain should meet".

One of the biggest real estate franchises in the tidewater area of Virginia is owned by Towne Banks and they just bought a real estate company here on the Outer Banks of NC. So, banks are allowed to sell real estate.

What NAR has been fighting is the banks request to sell real estate without having to follow any of the state or federal real estate laws. They want to be able to sell real estate under their own rules.

Big difference.

We have mortgage and real estate and title companies all under the same company here in Minnesota. They do ok, but I think people are going away from the "Good ol' boys club" mentality.

Here is some history and check the FAQ's for Credit Unions etc.

http://www.realtor.org/banks_and_commerce.nsf/pages/banks_in_real_estate

Thinking out loud...

Will there be more agents in 5 years or less? On one side you have a likely decrease in home sales because of rising interest rates (fewer agents) ... and on the other you have a deteriorating economy which sends people into low barrier to entry professions like real estate (more agents). Which will it be...

Broker, you just hijacked your own post, lol Maybe there should be a "Thinking Out Loud" category

Yeah... random thoughts... thinking out loud. Here's another one:

Is it o.k. for websites to take public data on agents, put them in a directory, then import their listings from another public site without an agents permission? Then say "claim this directory listing". They may think they are doing an agent a favor for promoting them and their listings... but are they?

Once stuff goes online is it open for grabs? What if you don't like their site or they are using your info for their gain? Should there be a "do not advertise" list?

I just wish that if they pulled information that they kept my ads legal. We have strict advertising rules and some of these sites just pick and choose information. One has me listed as being with a brokerage that I worked for a year ago. I saw one classified site that pulled a Kijiji ad of mine but deleted half of the ad....the stuff written in my ad is there for a reason!! We have the problem with some sites showing prices in foreign currency to ours. I don't mind info being used so long as it is used properly.

Don't just worry about mortgage companies jumping on the bandwagon.

The two major newspapers in Salt Lake City operating as Media One started a real estate brokerage to help offset falling incomes.

They charge $2,000 to list, no upfront fees, and advertise the heck out of their listings. If I advertised my listings that much I would be losing money, so I suspect a potential Respa violation.

Anyway if it proves successful I thing you may see the newspapers in your area try it.

What would the RESPA violation be?

I know of a company that has received about 2MM in funding that is working with some media companies so that when a consumer searches for property via a link to their real estate section, the persons info is captured and then sold as a referral. There is also a company started by some ex-NAR big wigs that helps media companies generate income from broker ads beyond the ad fees paid.

There are a number of multi-billion dollar companies that currently serve the real estate sector that have designs on capturing brokerage marketshare once the cost/benefit pendulum swings to the side that it will become more profitable to circumvent agents than to sell/service them. Sounds like the newspaper that you mentioned reached that point where they felt that the loss of broker ads could be less in the long run vs potential income earned from their 2k plan. It will happen more and more around the country.

The barrier to entry into this business is very low and some people take full advantage of that fact.