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A Real Estate Agent or Broker cannot make you use any specific settlement service provider such as a specific Mortgage Company, Broker or Loan Officer, Title Insurance Agent, Home warranty provider or Insurance Agent. This is a clear violation of RESPA ( Real Estate Settlement Procedures Act). This could also be a violation of your State Banking and or Insurance laws.
A Real Estate Company can only recommend that you use a certain Loan Officer or any other service provider; when recommending a settlement service provider the Realtor should always give you a choice of 3 or more to choose from.
I would ask to speak to the Real Estate Broker and explain what the Realtor has told you. You may find out that it is not a company policy but a Realtor doing this on there own without the knowledge of the Real Estate Broker.
Some real estate companies in my town offer only one choice in some settlement service categories, like; mortgage loans, title insurance, property insurance and home warranty contracts. The “preferred” service providers pay for the rights to the referrals. Is this legal? Does this violate a consumer’s right to choose? How does a consumer really shop for the best deal under these circumstances?