Posted by Charm_AL on 3/7/05 4:30pm
Msg #24153

Networking leads to hooking warranty co.?

I went to the Homebuilders show Saturday to network. I met a woman whom is the sales rep in northern Alabama for a warranty company. Long story short: We talked this morning and are meeting tomorrow to brainstorm. In a nutshell, she offered me 85. to sign an exclusive contract or 60. if I wanted to do this for other warrant cos as well. I would be marketing to real estate agents, mortgage companies, (they would give their customers the warranty in their loan pkg as an incentive for the buyer/seller) and my customers. Is it ethical to pass along the names of the people I've closed so that the company can contact them on my behalf to sell them a home warranty? This will be an interesting meeting and possibly a good source of extra income...Also, a question...She mentioned that she has a friend at a local real estate that is getting tired of their title company and asked if I would do closings for them at their office. That will be interesting to, as I can only perform my SA duties. The company they use charges them $200. for a closing and other fees for other work. If you're interested in the outcome of the meeting let me know and I'll post tomorrow...they seem to be nationwide, based out of Texas. Anyone else doing this kind of work?

Reply by Dave_CA on 3/7/05 5:05pm
Msg #24159

I'd be interested... N/M

Reply by jlynn mn on 3/7/05 5:10pm
Msg #24162

I would also be interested. And Thank You.

Reply by PAW_Fl on 3/7/05 5:53pm
Msg #24174

Charm asked: "Is it ethical to pass along the names of the people I've closed so that the company can contact them on my behalf to sell them a home warranty?"

No, it is not ethical. The borrowers name, address, phone number, etc. are privileged information for the purpose of signing the loan you were hired to get signed. Nothing more.

Reply by Charm_AL on 3/7/05 5:58pm
Msg #24176

thanks Paul...

that's what I thought...how about bringing up this as an extra service (I provide) to the borrowers after the signing? Fall under the same?

Reply by PAW_Fl on 3/7/05 6:02pm
Msg #24178

Re: thanks Paul...

You are providing a service to the borrowers FOR the title company and lender. You are not there to offer any other services. (At least that's the way I look at our "job".)

Reply by Stephen/VA on 3/7/05 6:13pm
Msg #24184

My understanding is that you cannot use names derived from Notary services "for any marketing purposes" (or some similar wording). So, in your state it might not only be unethical but illegal.

Reply by CarolynCO on 3/7/05 6:47pm
Msg #24191

Yes, please keep us posted on the outcome. Congratulations!

Reply by Roger/OH on 3/7/05 7:08pm
Msg #24201

Agree with Paul...

You're there to provide a contracted service as an NSA, period. Just because the borrower is a captive audience doesn't give us the right to hawk other things for our personal benefit such as prepaid legal services, Mary Kay, AmWay, or some other products that have been brought up here. Just do what you're supposed to do and don't cross the ethics line; if you do, sooner or later someone will complain about your solicitations to the ss or t/c.

Reply by Charm_AL on 3/8/05 7:20am
Msg #24307

Re: Agree with Paul...

thanks guys for the replies...I felt that I was there to perform a service for the lender as an officer of my state and that's it. This girl is a strong sell! I will talk to this woman and find out how I can market this service to R.Es and mortgage companies. It could be a sideline offering extra income, which is how I originally saw it, having nothing to do with my signing biz.
Reggie...one of the several reasons I moved out of Chicago because it always snowed on my birthday....well guess what??? They are predicting snow here tommorrow! who'd a thunk it? lol

Reply by CarolynCO on 3/7/05 11:04pm
Msg #24260

Re: Changing my mind

I originally skimmed your original post, but after re-reading it, I can see where it could be a conflict of interest, and probably not that good of an idea. Sorry.

Reply by BarbaraL_CA on 3/7/05 9:08pm
Msg #24230

Wouldn't touch it with a ten foot pole!

"I would be marketing to real estate agents, mortgage companies, (they would give their customers the warranty in their loan pkg as an incentive for the buyer/seller) and my customers. "

If you are marketing to RE agents and Mtg. companies and they include the warranty in their loan pkg, then you have a direct financial interest in the outcome of the loan. You can not coerce or recommend the borrower to take advantage of the warranty. It is illegal in CA to notarize documents that you have a direct financial interest in.


"Is it ethical to pass along the names of the people I've closed so that the company can contact them on my behalf to sell them a home warranty? "

It is NOT ehtical to pass along information on the borrower! You were given the borrower information for the purpose of presenting and notarizing the loan docs. You can not pass on that information for ANY reason let alone for financial gain.

As for sitting in at a Title company... remember that you are an Independent Contractor. YES, you can do this, but treat it like it is... your own business ... negotiate a rate for the time you are there.

Reply by Reginald Wilks on 3/7/05 10:02pm
Msg #24237

Charm_AL

That sounds very interesting. If you don't mind let us know how the meeting goes and if it is alright with her why don't you post there web site address.

By the way how's the weather in Huntsville?

Reggie
Kansas

Reply by Nd_WA on 3/8/05 2:20am
Msg #24298

Don't mean to be negative...

But I think a home warranty is only suitalbe in a buy/sell of real property, and the RE agent would be one to offer the product. I'd say almost all RE broker office has a warranty program to offer to the buyer/seller. I don't know how the warranty would fit in a conventional refi loan package.

I'd worked for Coldwell Banker, Century21, and Prudential. They all have the home warranty program. The warranty is pocket change for the RE agent/broker on every transaction. It served as peace of mind for the buyer and a sale pitch for the seller. I'm surprise the cost/commission for the warranty is still the same for almost ten years.

In a real estate sale, the warranty is good for one year on pre-owned home; it extends to the second year on new home after the original manufacture warranty expired. It covers tangible appliances such as the furnace, AC, range oven, etc. I think the owner have to pay a service call/deductible if something is broken then part/labor is covered under the warranty.

CharmAL quoted, "She mentioned that she has a friend at a local real estate that is getting tired of their title company and asked if I would do closings for them at their office."

Sounds like you are getting lure into more of a sale position with a chance to prospect RE offices for signing. I always give my clients the preference of choosing their own title company over mine for a closing. When I was a RE agent, I get to pick and choose my own closer within a title company.