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.