I hope this does not fall under the "dumb question #368" category, but are we required to give an affiliated business arrangement form to a borrower if we do not plan to refer that borrower to the affiliate? For example, we have an insurance agency affiliate. If a client comes in for an Equity loan and they already have insurance, we would probably not refer them to our insurance affiliate. Would we still need to give them the AfBA disclosure?
Thanks,
BC

No, you do not have to provide the disclosure if there is not going to be a referral.

RESPA states: 3500.15 (b)(1) "The person making each referral has provided to each person whose business is referred a written disclosure, in the format of the Affiliated Business Arrangement Disclosure Statement set forth in Appendix D of this part, of the nature of the relationship (explaining the ownership and financial interest) between the provider of settlement services (or business incident thereto) and the person making the referral and of an estimated charge or range of charges generally made by such provider (which describes the charge using the same terminology, as far as practical, as section L of the HUD-1 settlement statement). The disclosures must be provided on a separate piece of paper no later than the time of each referral or, if the lender requires use of a particular provider,..."

Or, at least that is what is says today. Not sure what it will say in the near future.....