How Tri Pointe Homes Uses This Clause
Tri Pointe Homes purchase agreements have been documented to include affiliated lender incentive steering provisions. Tri Pointe Connect, LLC (NMLS #1250459) is the affiliated mortgage company of Tri Pointe Homes. Acting as a mortgage broker, Tri Pointe Connect discloses it receives compensation from lenders of approximately 2.75% to 2.85% of the loan amount. RESPA disclosures state that buyers are not required to use Connect as a condition of purchase, but builder incentives may be contingent on using the affiliated lender. Buyers should compare rates and terms with independent lenders.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. This provision is closely connected to Tri Pointe Homes's affiliated lending arm, Tri Pointe Connect, LLC (NMLS #1250459). Because Tri Pointe Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Tri Pointe Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Deposit Forfeiture
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Standardized Across Markets
Tri Pointe Homes's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Connection to Tri Pointe Connect, LLC (NMLS #1250459)
Tri Pointe Homes operates Tri Pointe Connect, LLC (NMLS #1250459) as an affiliated lending arm. The builder may offer financial incentives for buyers who use this lender, which creates a direct connection between the lending relationship and the terms of the purchase agreement.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Tri Pointe Homes's operating states.
| State | Status | Note |
|---|---|---|
| California | Uncertain | California permits preferred lender arrangements subject to RESPA requirements, but the California... |
| Colorado | Likely Enforceable | Colorado permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Arizona | Likely Enforceable | Arizona permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Nevada | Likely Enforceable | Nevada permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Texas | Likely Enforceable | Texas generally permits builders to offer incentives conditioned on using a preferred lender,... |
| Washington | Uncertain | Washington permits preferred lender arrangements subject to RESPA requirements, but the Washington... |
| Oregon | Uncertain | Oregon permits preferred lender arrangements subject to RESPA requirements, but Oregon's Mortgage... |
| Virginia | Likely Enforceable | Virginia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Maryland | Uncertain | Maryland permits preferred lender arrangements subject to RESPA requirements, but Maryland's... |
| North Carolina | Likely Enforceable | North Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
Related Clauses in Tri Pointe Homes Contracts
This clause often works in combination with other provisions in Tri Pointe Homes's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
The affiliated lender provides the suppressed payment estimates, creating a direct connection between these clauses.
What Buyers Can Do
- Compare rates with independent lenders. Tri Pointe Connect, LLC (NMLS #1250459) may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Tri Pointe Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.