LoanDepot and its agent recruiting subsidiary, mellohome, will offer cash rebates of up to $ 7,000 for all-inclusive services where customers buy and sell with preferred mellohome real estate agent, finance with CreditDepot, and opt for company title insurance services.
CreditDepot “Grand Slam Package”, an allusion to the company’s sponsorship deals with Major League Baseball and Florida Marlins, will be available nationwide from October 1st – in time for World Series 2021… LoanDepot will also be the “Introducing Sponsor” of the American and National League MLB Championship Series.
LoanDepot is “more than a mortgage company,” said CEO Anthony Hsie. statement… “We are a digital commerce company committed to serving our customers all the way to home ownership.”
The California lender operates three ancillary businesses:
- Mello Home Services LLC, a captive real estate referral business launched in 2018.
- LD Settlement Services LLC, a subsidiary of the Loan Depot and Escrow business, which the company acquired in 2016.
- LLC “MelloStrakhovanie Services”, a captive insurance program launched in the third quarter of 2020 to sell homeowners and other insurance policies
Refunds up to $ 7,000 are available for customers who both buy and sell with a mellohome agent and choose comprehensive services. The amount of the discount will depend on the purchase or sale price of the house. To receive the full $ 7,000, purchases and sales must be $ 500,000 or more. The discount is $ 5,000 for purchases and sales between $ 200,000 and $ 499,999, or $ 3,000 for sales of $ 199,999 and below.
Buyers who use a preferred mellohome real estate agent and finance through a CreditDepot loan can receive discounts of up to $ 3,500, as can sellers who are hosted by a mellohome agent. Discounts are not available in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.
IN Real Estate Settlement Procedure Law (RESPA) operates business lines “associated with or part of the settlement services associated with federal mortgage loans.”
Referral kickbacks are illegal, but mortgage lenders with affiliated titles and escrow companies can sell a “discounted settlement package” – the Consumer Financial Protection Bureau, which enforces RESPA compliance. notes on its website… Consumers should not be required to purchase bundled services, and each company must also provide these services separately.
“The majority of our purchase-oriented clients have yet to choose a realtor, which gives us the opportunity to provide a more integrated customer service between the two key home buying functions, as well as generate additional income in line with RESPA requirements. way “, – noted in the last annual report to investors…
LoanDepot, which went public in February, was national fourth largest mortgage lender last year, according to reports filed with federal regulators and analyzed by iEmergent. Like many lenders, CreditDepot thrived in refinancing as existing homeowners took advantage of lower rates fueled by the continued purchase of debt by the Federal Reserve during the pandemic.
That trend continued this year, with refinancing accounting for 81 percent of the $ 41.5 billion in loans the company issued in the first quarter of 2021, the company said in its latest report. quarterly report investors. While lending for purchases increased 80 percent in the first three months of the year to $ 7.9 billion, refinancing rose 211 percent to $ 33.6 billion.
To support their purchase loan business, a loan depot has been formed in recent months. joint ventures with homebuilders LGI Homes, Schell Brothers and Brookfield Residential, and last month announced a joint venture with Farm Bureau Bank…