mellohome is a referral fee network designed to collect fees by matching consumers with local real estate agents willing to participate. mellohome operates as a licensed real estate brokerage in Texas as mello Home Services, LLC TREC License # 9006745, but it does not produce any services that are typically offered by real estate agents and does not represent consumers when buying or selling real estate in any State.
When consumers submit information to mellohome, this information is simply sold to real estate agents who are willing to pay for it with 25%-40% share of their commission.
mellohome revenue comes from referral fees and sale of user data.
mellohome is a Texas licensed real estate broker that collects an undisclosed referral fee (estimated at 25%-40% of agent's commission) from all real estate agents that participate. This fee makes it hardly a free service for anyone since referral fees are inevitably passed down to consumers.
More importantly, mellohome is a real estate agent that "does not engage in actual real estate broker services." mellohome systematically applies pay-to-play bias towards all matching results, meaning, only real estate agents that have agreed to pay a referral fee are matched with consumers.
mellohome audits all transactions because it needs to find out how much money real estate agents receive in commissions, inevitably collecting private details of consumer's agreement for home purchase or sale.
mellohome further claims to match consumers with "top-rated professionals," but there is absolutely no third-party evidence for this. The main qualification for real estate agents who participate with mellohome is their willingness to pay a referral fee.
mellohome is an affiliated brokerage of loanDepot. loanDepot is unable to collect referral fees from real estate agents directly due to rigid RESPA regulations. Instead, loanDepot is using mellohome's license as a loophole to bypass RESPA provisions that were designed to protect consumers from illegal kickbacks between real estate agents and mortgage companies.
mellohome plays fees down to consumers - it states directly "mellohome Services is a free service for real estate buyers and sellers," but it rigidly locks every participating real estate agent into a referral fee attached to the back-end of every contract.
As a licensed real estate agent that doesn't perform any real estate services or takes any responsibility for the transaction, it is not entirely clear how this process works under the Business and Professions Code and RESPA.
Clearly, real estate agents only sign-up with mellohome because the price of the referral fee can be easily incorporated into their client's agreement with excessive commissions. mellohome receives the lowest score because this service is clearly biased and it claims to provide the complete opposite of what it actually does. mellohome must be well aware of this issue but continues to operate on pay-to-play methodology in order to collect fees that needlessly make home buying and selling more expensive.
mellohome is a referral fee network designed to collect fees by matching consumers with local real estate agents willing to pay it. When consumers submit information to mellohome, this information is simply shared in exchange for an undisclosed fee with real estate agents in a process known as a blind match. mellohome is an affiliated brokerage of loanDepot.
Yes and No. mellohome revenue comes from undisclosed referral fees. Blanket referral fees set by such networks range anywhere between 25%-40% of the entire agent's commission. mellohome is a pay-to-play scheme that offers biased matches for financial gain. The main qualification for real estate agents who participate with mellohome is their willingness to pay a referral fee.
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