The National Association of Realtors‘ (NAR) speech code, formally known as Standard of Practice 10-5, has sparked a contentious debate within the real estate industry.

Critics argue that it infringes upon free speech rights, while supporters assert it’s a necessary measure to uphold ethical standards and protect marginalized communities.​

Rob Hahn, founder and CEO of Las Vegas-based online property exchange Decentre Labs, has been a vocal proponent of doing away with the speech code.

In a recent blog post, he reported that Texas lawmakers are weighing a state ban of the Speech Code — legislation what would also stop other trade associations from implementing similar conduct rules.

Texas S.B. 2713, introduced by Mayes Middleton (R), explicitly bans any trade association from “denying access, membership, or participation based on various factors, including race, color, religion, sex, disability, familial status, national origin, or an individual’s exercise of freedom of speech or assembly.”

If passed, the bill would take effect on Sept. 1.

“When NAR first passed the Speech Code, I wrote a long post recommending an alternative,” Hahn wrote Wednesday. “Part of it is because I am a free speech absolutist. The best way to combat ‘bad’ speech is good speech, not censorship. I believe I am providing an example of what that looks like right here, right now.

“But the other part, at least in 2020, was that I could see where things were going to go and I wanted to preserve what the industry had built over a hundred years.”

Conversely, Ryan Hainlin, founder and former CEO of the LGBTQ+ Real Estate Alliance, wrote a rebuttal to Hahn’s push against the speech code.

“The First Amendment was never meant to be a blunt weapon,” he stated. “It protects speech from government censorship — not from consequence, not from accountability, and certainly not from moral scrutiny. Like any freedom, speech ends where another’s safety begins.”

Historical context and implementation

NAR’s speech code was introduced in 2020 with provisions aiming to stop Realtors from engaging in discriminatory hate speech, even outside their professional activities.

“Ryan talks about free speech mattering, but justice matters more,” Hahn said. “Nay, on the contrary, without free speech, there is no justice. There can be no justice without freedom of speech and conscience. There is only oppression, silencing, censorship, finger wagging, and moral posturing … because the other side is prevented from talking.

“Texas is about to kill NAR’s Speech Code dead. Ryan is distressed, as he should be, since his control freak agenda can’t work anymore. On the other hand, I am ready to throw a party for the victory of freedom over control, for victory of free speech and freedom of conscience.”

Hainlin highlighted the industry’s history.

“For decades, the National Association of Realtors endorsed racially restrictive covenants,” he said. “NAR fought to preserve redlining. It wasn’t until 1972 — eight years after the Civil Rights Act — that NAR updated its own Code of Ethics to acknowledge that discrimination was wrong.

“Today, those legacies are still with us. Black Americans continue to lag nearly 30 points behind white Americans in homeownership. LGBTQ+ people face a 16-point gap compared to the general population. And nearly one-third of queer Americans report direct housing discrimination or bias.”

Legal context

Legal opinion generally asserts that professional codes of conduct, like NAR’s speech code, do not violate the First Amendment.

The First Amendment restricts government censorship, not the actions of private organizations, according to the U.S. Supreme Court.

In Brandenburg v. Ohio (1969), the Court held that speech can only be restricted if it incites imminent lawless action. However, this standard applies to government actions — not private associations enforcing ethical standards.​

Further, in Chaplinsky v. New Hampshire (1942), the Court recognized that certain categories of speech, such as “fighting words,” are not protected under the First Amendment — supporting the notion that organizations can impose restrictions on certain conduct.

Balancing individual rights and community standards

Hahn argues that NAR’s speech code crosses a line by equating controversial speech with actual harm.

“Words are not violence. Violence is violence,” he insists. “Airplanes crashing into buildings and thousands of people burning to death is violence. Turns out, reality exists.

“There is a similar reality to being human. There are absolutes. The Bill of Rights does not grant rights to us; it merely recognizes the reality of them as inherent in all people. Free speech and freedom of association, right of self-defense, the right to be free from search and seizure — these were not given to us by the government, merely recognized by the Founders.”

Hainlin said that Realtors, like members of any profession, agree to higher standards when they join.

“Codes of Ethics aren’t just a good idea — they are expected,” he said. “They are not only encouraged by federal regulators, but strongly recommended by every credible independent oversight, governance, and compliance institution in the nonprofit world. For 501(c)(3), 501(c)(4), and 501(c)(6) organizations — like NAR and thousands of others — a written Code of Ethics isn’t an exception. It’s the standard.”

Mortgage technology provider Sagent has announced a new partnership with LERETA, a company specializing in real estate tax and flood services, to integrate LERETA’s solutions into Sagent’s platform.

The collaboration aims to give mortgage servicers streamlined access to real-time tax data, flood zone determinations, payment processing and automated monitoring through Sagent’s Partner Program.

The integration is intended to improve operational efficiency and reduce risks related to tax delinquencies and flood hazards, according to the companies.

“This partnership underscores the shared commitment of LERETA and Sagent to modernizing mortgage servicing with innovative, data-driven solutions,” said Katie Brewer, CEO of LERETA.

By embedding LERETA’s services into its infrastructure, Sagent hopes to offer its clients improved tools for managing complex tax- and flood-related tasks.

“Sagent and LERETA’s partnership will streamline workflows, reduce costs and diminish risks, allowing servicers to focus on delivering superior homeowner experiences,” said Perry Hilzendeger, executive vice president of strategic growth at Sagent.

“We know how critical it is for servicers to have access to real-time data, which is why we are thrilled to provide LERETA’s tax and flood solutions for our customers.”

Top 10 U.S. mortgage lender Rate is investing in the nonqualified mortgage (non-QM) space by launching a new suite of products. It aims to attract borrowers with nontraditional financial profiles, including self-employed individuals, small-business owners, freelancers and real estate investors.

The Chicago-based lender ranked as the eighth-largest in the country, originating $39.6 billion in mortgages in 2024, up 15% year over year, according to Inside Mortgage Finance data.

In the non-QM segment, Rate originated about $2.8 billion in 2024, which was a “massive gap for us,” according to President Shant Banosian.  

“[Non-QMs are] something we are super committed to because we have the widest variety and strongest non-QM product offering in the mortgage space,” Banosian said in an interview with HousingWire. “Our ultimate goal is to double our non-QM business in 2025 and eventually have it become almost 20% of our production here at Rate.” 

Banosian, who is not only the company’s president but also one of its top originators, said that non-QM products made up nearly 10% of his personal production in 2024. He said he was “a little delayed in understanding and deploying the product,” but now that he’s committed, it can be a “game changer.” 

Dubbed Rate Portfolio, the new products are being introduced in a competitive purchase market. Some prospective borrowers — particularly those who fall outside rigid income qualification framework from Fannie Mae and Freddie Mac — need to “make non-contingent offers and move quickly without traditional financing roadblocks,” the company stated. 

One offering is a mortgage for self-employed borrowers with flexible documentation requirements — such as business cash-flow statements or 1099 forms — instead of traditional tax returns. The product requires just one year of income verification. 

Another option allows borrowers to qualify based on assets alone or in combination with income — including retirement accounts, investment portfolios, money market funds or inheritances. Liquidation of assets is not required to determine eligibility. 

A separate investor-focused product allows qualification based on property cash flow without requiring tax returns. Borrowers must meet a minimum debt-service coverage ratio of 1.0. 

Rate is also introducing a “Buy Before You Sell” product, enabling borrowers to make offers without first selling their current home. It removes the need to qualify for two mortgages simultaneously, although appraisal, credit score and minimum equity requirements still apply.

Kate Amor, Rate’s executive vice president and head of enterprise products, said in a statement that these products “unlock common-sense financing options that weren’t previously accessible through traditional lending channels.”

Amor and Banosian are actively promoting the product line through in-person training with loan officers, real estate agents and financial advisers. These products disappeared after the financial crisis of the late 2000s, and many people don’t even know they are available as a viable solution, Banosian said. 

Among loan officers, “the biggest misconception is that these loans are more difficult to originate and take longer,” Banosian said. At Rate, a non-QM loan can be originated in as little as seven days, he added.

“From an affordability standpoint, the pricing was not that much different in a lot of cases, and it’s much cheaper than what was available to them alternatively,” Banosian said.

“In some cases, the product offerings are better than conventional financing terms. In other cases, they’re not as good. It’s all just based on the risk level, between things like credit score, down payment, the way the loans are being underwritten, all the different factors.”

Regarding Rate’s post-origination strategy, Banosian said it varies based on market conditions, investor appetite and balance-sheet strategy. 

“We want to be super competitive on the front end from a pricing standpoint and allow for scalability on the back end with our distribution model,” Banosian said. “Our goal is always to be at the most competitive price and be an industry leader in place. So we’re always looking to have our margins be as competitive as possible.”

As of Friday, Rate had 2,187 sponsored loan officers and 479 active branches, according to the Nationwide Multistate Licensing System (NMLS).

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