Could having “RPA” next to your name make a difference with borrowers?
When John G. Stevens was first approached by SRE Mortgage Alliance about joining the team in late 2019, he saw an opportunity not only to align himself with a rapidly growing company, but to change the future of the mortgage industry.
“It was so exciting,” Stevens says of the offer to join the company. “I couldn’t even sleep that night.”
What had Stevens so fired-up was the chance to head up the company’s efforts around a new, trademark-pending professional designation it had created: Real Property Advisor, or RPA.
Simply put, an RPA is an individual who possesses licenses to both sell real estate and originate loans, a combination of experience Stevens says home buyers are looking for.
“At one time you had a stockbroker, now you have a financial advisor. It’s the same thing,” he says. “People are expecting more out of the individual they come to than they ever have before. They want to have an individual they trust to take them through the entire process.”
Because Americans have proven so responsive to online homebuying tools, and because of the threat posed to real estate brokering by the class action lawsuit filed against the National Association of Realtors last year, Stevens feels originators who become RPAs will be preparing themselves for a future where consumers have fewer real estate agents to turn to for advice. That’s why he sees the time, money and testing required to pick up another professional license as being a necessary investment.
“It’s not so much ‘Is it cost-effective for me?’” he says. “It’s ‘Can I afford not to do this?’”
The RPA designation has been a top priority for SRE founder Takeshi Sakaguchi, who started researching the concept six years ago. Sakaguchi, Stevens explains, felt that consumers were being taken advantage of by agents, originators and the systems in which they operate. Real estate agents keep collecting sizeable commissions even though “the majority of the work is done” by the time they’re contacted by buyers, he says, adding that the fees borrowers are forced to pay reflect the need to compensate all the middlemen that make the lending world run.
Stevens says consumers who use RPAs will wind up paying less while receiving considerably upgraded service. That’s a combo he feels will result in positive word-of-mouth and, ultimately, greater market share.
“Who doesn’t love bragging about the great deal they just received?” he says.
But will it catch on with consumers?
Not everyone is in love with the idea. According to Shashank Shekhar, CEO of Arcus Lending, the idea of an RPA has some pretty stiff competition that may prevent it from gaining traction.
“‘Realtor’ is a designation that's entrenched into consumers’ minds for real estate needs,” he says. “Trying to get a new title to have any value or recognition will require millions of dollars in advertising over several years. And if they are banking on a one-stop shop aspect, why can't realtors or their companies start selling mortgages like Keller Williams is trying? After all, most buyers go to the realtors first.”
Stevens takes the criticism in stride. He says the RPA initiative, which is undergoing a slow, methodical roll-out, has been “tremendously well received”. Doubts around the need for the designation or its eventual efficacy are to be expected in a world where change is viewed as frightening or inconvenient.
“It’s kind of like the paper clip. Why would someone not like a paper clip?” he says. “But there are people who say, ‘Nope. I only use rocks to hold my papers down.’ That’s okay. There’s always going to be pushback.
“We’re looking for the elite few who understand that it’s all about the consumer and not the individual – the broker’s – pocketbook. This is the future of our industry. This is exactly where we’re going.”
