Wyden, Colleagues Call for Review of MV Realty’s Deceptive Listing Agreements
Washington, DC — U.S. Sens. Ron Wyden (D-OR), Sherrod Brown (D-OH) and Tina Smith (D-MN) this week urged federal regulators to review real estate brokerage firms’ use of exclusive listing agreements.
The letter from Wyden, Brown and Smith follows several reports of companies like MV Realty misleading families into entering 40-year exclusive listing agreements, which can make it difficult for homeowners to refinance and often result in them losing out on up to three percent of their home’s value when they resell.
“MV Realty, and companies like it, take tens of thousands of dollars from homeowners in exchange for a minimal up-front payment,” the senators wrote the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). “By advertising these agreements as a ‘loan alternative,’ companies are attempting to avoid the legal limitations on lending while in essence charging borrowers onerous rates.”
“We urge the CFPB and FTC to work with state attorneys general to review whether these listing agreements and business practices violate federal consumer protection laws, including prohibitions against unfair, deceptive, or abusive acts and practices, and to take appropriate action where violations are found,” they wrote.
A copy of the letter is here.
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