Bridget's Blog


Builder Dis-Incentives!

For anyone who has shopped for a new construction home and was told that by using the builder's
"preferred lender", they would receive great incentives, if not, they would pay a higher price, not get special perks, whatever.  It always struck me as being a bit on the shady side.  I am glad that RESPA finally is helping the consumer the leeway to find their best advocate!

Effective Jan. 16, 2009 a new home builder can no longer use "disincentives" to steer their customers to their preferred mortgage company.  In practice, builders have for years offered huge monetary incentives to steer customers to their preferred/affiliated lenders. Likewise, if the customer chose not to use the preferred/affiliated lender a huge "disincentive" was created in that the monetary incentives were taken away.

HUD makes it clear that economic disincentives that are used to improperly influence a consumer's choices are as problematic under RESPA as are incentives that are not true discounts. Under the new rules a consumer would be more likely to shop for a home and the loan and settlement service that is best for them, free from the influence of deceptive referral arrangements.


RESPA Final Rule:

Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO or


If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 2 commentsBridget "Mortgage Mama" McGee • November 21 2008 03:08PM


bridget, your link to RESPA final rule is bad.  do you have a good one?  thx. --Tom

Posted by Tom Gimer (Century Auction Group) over 11 years ago

Tom, It worked for me.  Try again and let me know if you were able to get it.   You have to scroll down to section VI to see the ruling mentioned above.


Posted by Bridget "Mortgage Mama" McGee, Maryland Mortgage Mama NMLS#196068 (SWBC Mortgage 410-960-2061) over 11 years ago