Zillow's Mortgage-Steering Lawsuit and What Sellers Should Learn From It

0:00Welcome to Real Stories with Buddy Blake. Today's episode features real estate insights from Buddy Blake. Let's dive in. So, Buddy, I saw this headline this week and it kind of stopped me in my tracks.

0:18Zillow asking a court to permanently shut down a lawsuit about mortgage steering. What's going on there? Yeah, I saw that too. And look, I don't have the court filings in front of me.

0:27I'm not going to pretend to know how this thing plays out legally. But the story itself, it's worth talking about because it touches something every single home seller and buyer around here should be thinking about. Which is what, exactly?

0:42Who's actually working for you and who might be working in angle. That's really it. Okay, so break that down for me. What does mortgage steering even mean in plain English?

0:54So steering, in plain terms, is when a company or a person nudges you toward a particular lender or product because it benefits them. Not because it's the best fit for you. And it doesn't always look shady on the surface, that's the thing.

1:09Sometimes it's just a little recommended lender button on a website. Sometimes it's a preferred partner list handed to you like it's the only option out there. Right. And it feels official.

1:19So you just kind of go with it. Exactly. Honestly, the problem isn't that lenders and platforms have relationships with each other. That happens all the time.

1:29The problem is when you don't know those relationships exist or you feel like you have to use them. That's a really important distinction. So even if this Zillow case gets closed, tossed out, whatever happens, you're saying the bigger question doesn't just go away.

1:44No, it doesn't. Because the real question is, are the tools people use to buy and sell homes actually neutral? Or are they pointing you somewhere for reasons that have nothing to do with getting you the best deal?

1:56Okay. So let me ask you this, because I think a lot of folks listening are going to think, well, I don't use Zillow's mortgage tools, so this doesn't apply to me. Why should they still care?

2:06Well, most folks I talk to in Wilmington, Leland, around the region, they're not thinking about lawsuits when they list their home or start shopping for a house. They're thinking about timing, price, getting it right. But this story is a good reminder of a real simple truth.

2:22You have the right to shop your mortgage, your title company, your closing attorney. Nobody, not a portal, not an agent, not anybody should make you feel boxed in. And I imagine that same idea applies to who you pick as your agent too, right? It absolutely does.

2:39If you're getting ready to sell, that same principle applies to the agent relationship. You should know exactly who represents you, what they're recommending, and why. And if something feels like it's being pushed on you rather than explained to you, that's worth a second look.

2:57So how do you handle that on your own team? I know you work directly with sellers. Right. On my team, I work directly with sellers, and our agents help buyers.

3:08That split exists so nobody's getting pulled in two directions on the same deal. When I sit down with a seller here in Wilmington or anywhere across southeastern North Carolina, my job is to give you the real numbers, the real timeline, the real trade-offs. Not the version that sounds best in a slideshow.

3:27I love that. Not the slideshow version. That's such a good way to put it. Well, it's true though.

3:34And that's the same standard I'd want applied to a mortgage recommendation, a title company referral, anything tied to your transaction. You should always be able to ask, why this one, and get a straight answer back. So what can people actually do about it, like practical steps?

3:51A few things. Always ask if you're free to choose your own lender, title company, or attorney. Ask any agent or platform how they're compensated for the recommendations they make. Compare more than one lender's numbers before you commit, even if one is quote-unquote recommended.

4:10And pay attention to how questions get answered. What do you mean by that last one? Straight answers build trust. Vague ones should raise an eyebrow.

4:19If somebody's dancing around a simple question, that tells you something. That's such a simple way to filter through it all. So bottom line, what's the takeaway here for somebody getting ready to sell or buy in this area? Big lawsuits like this one, they come and go.

4:34Most of us will never read the actual filings, honestly. But the lesson underneath it is simple, and it applies close to home. Know who's giving you advice, know why they're giving it, and don't be afraid to ask questions until the answer makes sense.

4:48That's true whether you're picking a lender, a title company, or the person helping you sell your house. That's a great note to end on. So if somebody's listening and they've got questions about selling in this area, or they just want a straight answer about where things stand, what should they do?

5:04Give me a call or send a text, 910-395-1000. Happy to talk it through, no pressure. And the full article's linked in the show notes if you want to read through it yourself. Perfect.

5:17Buddy, thanks so much for breaking this down. I think it's one of those things people don't think about until it's suddenly a big deal. Anytime. Thanks for having me.

5:26Thanks for listening to Real Stories with Buddy Blake. For the full article and more, check the show notes.