Thread Options
#1789249 - 02/26/13 04:40 PM Section 8 question
RR Sarah Offline
Diamond Poster
RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
MLOs would like to offer to donate $50 to the local food shelf on behalf of local realtors for each home purchase loan closed via realtor referrals. To me, the donation would be considered a "thing of value" and therefore a Section 8 violation. I really like the idea of the donation and don't want to be a roadblock if I am wrong so would really appreciate other opinions. Thank you.
_________________________
Sometimes you have to burn a few bridges to keep the crazies from following you.

Return to Top
RESPA
#1789270 - 02/26/13 05:10 PM Re: Section 8 question RR Sarah
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,464
Bloomington, IN
donate $50 to the local food shelf on behalf of local realtors for each home purchase loan closed via realtor referrals

I see no way around a Sec. 8 violation.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1789273 - 02/26/13 05:16 PM Re: Section 8 question Dan Persfull
RR Sarah Offline
Diamond Poster
RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
Yeah, me either. Grasping at straws on behalf of the food shelf I guess.

Thanks Dan.
_________________________
Sometimes you have to burn a few bridges to keep the crazies from following you.

Return to Top
#1789294 - 02/26/13 05:46 PM Re: Section 8 question RR Sarah
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
It's so frustrating when it comes down to something like this which benefits neither of you in the big picture, but benefits such a worthy cause.

I mean really...the Realtor usually will go with whichever lending institution they normally deal with...and won't come to you just for this donation...but those that normally do, it's just a shame.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1789348 - 02/26/13 06:57 PM Re: Section 8 question RR Joker
RR Sarah Offline
Diamond Poster
RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
It really is a shame which was why I was having such a hard time telling them no.
_________________________
Sometimes you have to burn a few bridges to keep the crazies from following you.

Return to Top
#1789367 - 02/26/13 07:30 PM Re: Section 8 question RR Sarah
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Makes you feel like a complete heel!
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1789379 - 02/26/13 07:53 PM Re: Section 8 question RR Sarah
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,464
Bloomington, IN
Makes you feel like a complete heel!

Why? The whole idea behind this promotion is to generate referral business through the Realtor network and giving the money to a charity on their behalf was an attempt to avoid Sec. 8 issues.

If you really want to help the food banks then run a promotion that the bank will donate $50 to the food bank for each mortgage loan closed between X & Y up to a total maximum donation of Z.

On second thought this could possibly run into issues also due to the food banks would start referring business to your bank and they would be getting a thing of value for the referral. But I would rather take my chances with this promotion than the one tying it to the Realtors.
Last edited by Dan Persfull; 02/26/13 08:03 PM.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1789539 - 02/27/13 02:40 PM Re: Section 8 question RR Sarah
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Why? Because we are always the 'bad guy' in these situations...they forget there is a rule...and we are here to 'remind' them of it. wink
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top

Moderator:  QCL