Agents Told to Immediately Stop Using TransactionPoint?

District Attorneys are Reportedly Investigating

We’ve just been alerted by an RE-Insider reader that a large brokerage has recommended that its agents, among others, be advised to immediately stop using TransactionPoint, if they haven’t already done so.

The brokerage has apparently had serious concerns for several months concerning Fidelity’s TransactionPoint software. According to the brokerage, Fidelity recently brought to their attention potential legal problems with the TransactionPoint software.

Our readers may recall we’ve been raising questions and concerns about TransactionPoint since June of last year. Now we come to find out that this is apparently being recognized by various government agencies as a major issue that may affect many levels of professionals across the real estate industry.

The advisory from the brokerage’s representative says that the legal team of Fidelity met with HUD and discussed the sublicense aspect of TransactionPoint and that HUD concluded that the sublicense part of TransactionPoint “DOES VIOLATE” code 2601 – which we assume is a RESPA code. The advisory goes on to state that Fidelity attorneys do not agree with HUD and will defend it in court.

The advisory further states that District Attorneys in various counties are seeking information from Fidelity and that subpoenas have already been issued.

According to the brokerage representative, Fidelity is fully cooperating with the District Attorneys by giving them all of the information they are seeking.

How might this affect brokers and agents? And shouldn’t they be told what information is being provided by Fidelity to the District Attorneys?

Is Fidelity providing the names of brokers that participated in the TransactionPoint sublicense agreements? Is Fidelity telling the District Attorneys what brokers received sublicense payments from vendors and in what amounts? Is Fidelity providing this information to HUD? We’d like to ask all brokers that participated in these sublicense “pay to play” agreements — Did Fidelity tell you what information they are providing to the government?

In closing the communication warns: “I am sending this to all of my business partners to make sure we are not using this in any of our offices. At the same time, I am sending this to all the offices in the region to likewise prevent harm and keep everyone in the loop.”

At RE-Insider, we are sharing this news for the same reason, let’s all work to protect our professional reputation and keep our practices above board.

RE-Insider will stay on this story and keep you informed.

  • Sandi

    What is the alternative – Do we have a program that is “legal” and proficient?

    • RE-Insider

      There are many programs that meet the requirements of HUD. Ask around and you’ll get some great ideas.

    • MD

      ClosingSite is a viable alternative and a much better product. And it is super inexpensive to use.

  • Robert

    It seems to me that Fidelity can’t do anything right lately. Maybe you (and the rest of the industry) just keep focusing on it, but I’m starting to wonder how that company got as big as it did. Shady practices like this are what could drive a company out of business.

    Thanks for the story.

    RK

    • RE-Insider

      Sometimes it seems that the bigger a company gets, the more unscrupulous the practices. It’s not always true, but it’s what I see.

      • controlled business

        it’s a definite with FNT. the upper management are scam artists along the lines of enron.

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  • Jenica Napier

    We use SkySlope as our solution. We almost used TRPoint but decided not to as it was very outdated and hard to use. Our agents love Skyslope and we now are glad we made this decision.