Any excuse to post this picture...
In Part One, we congratulated Ernie Graham and his team at SocialBios for getting acquired. I hope he picked out a nice Lamborghini Reventon in taxicab yellow.
The second Curious Thing that came about just as Move was announcing its acquisition of SocialBios was the confluence of two seemingly unrelated things. Making sense out of unrelated things — that’s what we do here.
First, over on Notorious ROB, I wrote about the terrible June jobs report, and the statement by Lawrence Yun, Chief Economist of NAR, that because of “shrinkage” in the real estate industry, most REALTORS would see a bump in their personal income. That is, pie might be shrinking, but the number of people who want to eat pie is shrinking even faster.
Second, the Federal Trade Commission announced that it would not enforce MARS (Mortgage Assistance Relief Services) regulations against licensed real estate brokers and agents. From the statement:
In recent months, a number of real estate brokers and agents (“real estate professionals”) and their representatives have contacted the Commission to question the applicability of certain provisions of the MARS Rule to real estate professionals who assist consumers in obtaining short sales. In particular, these persons have raised concerns about the accuracy and comprehensibility of the disclosures mandated by the Rule, and the unintended consequences that might result from application of the advance fee ban, in the context of a real estate professional assisting a consumer in negotiating or obtaining a short sale. [Emphasis mine.]
As a result, except for certain provisions having to do with misrepresentation, real estate agents are not subject to MARS rules as long as they are licensed and in good standing, and working on a short sale. Behold the power of NAR.
What the hell do these two things have to do with each other, nevermind with social and real estate? Has Rob finally gone over the edge? Read on, but as always, caveat lector.