SOUNDING OFF:

I enjoyed Michael Miller’s timely article “Realtors insist ethics missing” (Feb. 4) at a time when our country is facing one of the most difficult real estate crises.

There is no doubt many buyers — first-time or otherwise — lack the fundamental knowledge of basic finance. However, it is the moral, ethical and legal responsibility of the so-called experts in transacting real estate to protect the rights of the stakeholders involved in the process.

Yes, the lending institutions failed by placing their own economic interest ahead of shareholders and borrowers. These institutions are the same that irresponsibly provided financing to developers and contractors to overbuild our communities.

And, obviously, this same group provided the financing to many who should never have purchased. Bottom line: Record number of foreclosures and write-offs, and hundreds of thousands in many industries associated with real estate will now join the ranks of the unemployed. The industry system of “checks and balances” totally crashed or maybe it never existed. Our instant-gratification mentality fueled by an exuberant amount of greed has destroyed the American Dream and many of our communities.

Elia Ceniceros is totally right. She said, “There’s a lot of unscrupulous and unethical agents out there that may have done that to clients, but the problem is that when the client turns around and needs the agent to help them, the agent is no longer in the business.” So true, but why are we surprised? The entry and exit barriers in our industry are among the lowest. It is easy to get in and even easier to get out. Very few Realtors have any skin in the game.

Our industry has more part-timers and retirees than any other. These individuals are not committed to the long-term prosperity of the industry. When the tide is high and easy money is to be made you will find them in herds, but when the tide is low and they have to work hard for their so-called clients, they simply disappear.

Most of these are there to make a quick buck and undoubtedly the means justify the ends. These individuals need to close in order to earn a commission and as such they have consistently manipulated the process to their advantage.

We need to “professionalize” the Realtor’s role. This in turn should result in a significantly better-prepared Realtor and, among other things, a financially literate one. I have met many agents who do not have the slightest idea about basic finances. Immigrants are very vulnerable. Would you not think an agent could play an instrumental role in protecting them? It boils down to morals and ethics. It has nothing to do with legality. It is about time as an industry and individuals we become “socially responsible.”

MANUEL J. IRAOLA is chief executive of www.Homekeys.net.