Hypothetically, If the bank would pay a construction company for referrals for consumer home construction credit; Is this a Section 8 RESPA violation? If not can anyone give me advise on the ins and outs of creating a referral program?

Based on what you described, this sounds like a RESPA Section 8 violation. I am assuming that what you are describing as consumer home construction credit doesn't fall into any of the exceptions from coverage under RESPA. Paying for referrals for loans that are exempt from RESPA Section 8 coverage is the only way to run a referral program involving any form of compensation or exchange of a "thing of value".

Anon2: If you are not very familiar with Section 8, you should consult a qualified attorney to help you set up your program.

If the bank would pay a construction company for referrals for consumer home construction credit; Is this a Section 8 RESPA violation?

Construction only loans are not subject to RESPA......BUT if you do the end financing how can you reasonably defend that was not part of the referral? Especially if a majority of the "construction" loans are converted to the end financing either by a new loan or modification.

As suggested....seek out and hire a competent RESPA attorney if you proceed with this program.

Very good point Dan. Thank you for your input!