We have an MLO who has an opportunity with a realtor to place signs in the yard(s) of homes for sale. The sign will read 'Financing Available Through' with our bank name, logo, proper disclosures, lenders name, contact information and 'Credit Approval Required'. Would placing these signs (no payment involved) cause an issue - in your opinion? We're getting some conflicting information.

Thank you!

My opinion, yes. I think it should be clear that other financing options/lenders are available. I feel like I'm remembering this from recommendation, and nothing specific... so maybe not but it is something I would require on ours at a minimum. Curious what others will suggest.

It this a standalone sign or combined with the realtor information?

Stand alone so it can be used more than once.

A bank can place such signs anywhere they want to if they have permission. It is not really related to the realtor in my mind. I would think it would be the current homeowner that has the final say. It is their property after all.

Sorry - but apparently I got the scenario wrong. This sign is to go on an empty lot for a home that is to be built. The lot is for sale and currently does not have a structure. It could be bought by anyone to construct a primary residence or to a builder to construct a spec home. Does this change anything?

Not really. A bank can advertise anywhere they have permission to advertise. I guess is fail to see the RESPA concern.

Thank you, Randy - and the response we were hoping to read.

Resurrecting this post. We have a similar situation, however, the request is to put our Financing Available sign as a topper on the realtor's signs. That would be a RESPA Section 8 violation, wouldn't it?

Not necessarily. Is the bank paying to have their promotion with the realtor's signs? Does the bank do this for all realtors, not just just a select few?

Continuing the RESPA topic... We have an interesting scenario, and I'll try to describe it the best I can...
We funded a commercial loan for a condominium that is currently being built (builder). This particular business always uses the same real estate company to list their properties (agency). They are wanting to do a joint marketing ad that lists the builder, agency, and Bank and place the easel sign in our branch (closest to the property) and also in the agency's office.

The ad states where the property is located, contains pictures of what it will look like, and contains the builder and agency's contact info. But then there's a heading of Mortgage Loan/Financing Options and then lists our MLO's contact and NMLS information. In my opinion since it is combined with realtors information as well, we have a potential RESPA issue, since it could be construed as limiting prospective clients options...

Thoughts?

As long as each party pays their fair share of the advertising costs and there are no referral fees or other cost reductions benefiting the Realtor or the builder then RESPA does not prohibit joint marketing campaigns.

Switching a little from RESPA, but it applies to my scenario above... Are we required to include the FI's NMLS ID in the advertisement? I had suggested it wasn't necessary and to take it out, but they said the prior administration said it was a requirement in mortgage advertisements. If we aren't required, does it hurt anything to have it in there? 1007.4 and 1007.5 didn't offer much clarification as it only talked about the MLO's ID.

Doesn't apply to a bank as you would be exempt from your State NMLS requirements:

State Requirements

The large majority of states adopted the following provision contained in the CSBS/AARMR Model State Law that mandates the use of the unique identifier. State laws should be consulted to determine specific jurisdictional requirements.

MSL XX.XXX.210 UNIQUE IDENTIFIER SHOWN - The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or websites, and any other documents as established by rule, regulation or order of the Commissioner.