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.

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.

Yeah, me either. Grasping at straws on behalf of the food shelf I guess.

Thanks Dan.

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.

It really is a shame which was why I was having such a hard time telling them no.

Makes you feel like a complete heel!

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.

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.