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#2072478 - 04/05/16 04:16 PM web site link
Curly Offline
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Up North
Is this arrangement a violation ?
Last edited by Curly; 04/05/16 04:45 PM.
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#2072500 - 04/05/16 04:45 PM Re: web site link Curly
Curly Offline
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Joined: Oct 2012
Posts: 10
Up North
A real estate developer has suggested to the bank that the bank allow the developer to post the bank's web link on the developers website. Something like, go see XYZ bank for financing. So, the bank gets a thing of value, the free advertising (web link), but the bank isn't making any referrals or promises to the developer. I have this reaction / feeling that this could be a section 8 violation, but I'm not sure why.

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#2075904 - 04/27/16 03:17 PM Re: web site link Curly
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Why is the developer giving you space on its website if not for referrals?

If the developer isn't doing consumer loans than Section 8 is moot but are you comfortable being affiliated with this developer? Adding links to financial institutions is a nice way to try to make a troubled company look more legitimate. I have seen issues with these kind of deals in my neck of the woods with solar companies doing shoddy work and then disappearing. Guess who the customer tries to hold responsible? If you don't do your due diligence on the company be prepared for complaints.
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Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

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#2075929 - 04/27/16 03:53 PM Re: web site link Curly
Curly Offline
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Joined: Oct 2012
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Up North
Why ? They explained to us (the bank) that they wanted to provide information (a link to our website) to their potential customers on how or where to obtain mortgage financing and or construction financing. We are a leader in our market for construction lending. The developer does not do any type of financing or lending.

This has been a hard question to get an answer to. No, not really, I've received three answers, there are all just different.

I'm still hung up on the fact that obviously, the bank would expect to receive some loan applications or at least inquiries because of this arrangement. Isn't that a referral ? Perhaps I'm over thinking this......

I understand your point about being affiliated in this manner and the reasons it may not be a great idea.

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#2075957 - 04/27/16 04:48 PM Re: web site link Curly
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Joined: Apr 2016
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Well not knowing all the details its difficult to say. I am personally not a fan of this kind of set up since it does open you up to lots of Section 8 related questions. I hate to make the slippery slope argument but it can lead to more expansive interpretations of what is "ok" to do.

The other question is what is the value of this link to the bank? You might get a few clicks but it sounds like the developer is the one that is getting the larger benefit.

Is it likely to get you into significant trouble? Hard to say. Is it worth the risk? That's for the bank to decide.
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Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

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