Internet Compliance?

Rick Chelsvig, who serves on the FRB's electronic banking committee reports that an issue of concern for that committee is the question of referral fees under RESPA. Given HUD's recent interpretation on referral fees, there could be Internet implications. For example, what if a bank refers to another lender on its Internet page? Is that a referral for purposes of section 8 and does it have value? The FRB is looking broadly at how the Internet affects banking institutions and how it may affect consumers.

Copyright © 1999 Compliance Action. Originally appeared in Compliance Action, Vol. 4, No. 5 & 6, 5/99