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#2168890 - 03/19/18 01:54 PM Director & Affiliated Business Arrangement
JG2 Offline
New Poster
Joined: Mar 2018
Posts: 2
Good morning! I recently switched bank employers and find it very interesting how each one handles TRID disclosures a bit differently. My current bank does not provide the Affiliated Business Arrangement Disclosure although my prior one did. With each bank, a director on the board is an attorney. At the new bank also this attorney's name also appears on the written list of service providers. The Affiliated Business Arrangement Disclosure is truly not needed in this case?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2168897 - 03/19/18 02:10 PM Re: Director & Affiliated Business Arrangement JG2
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
TRID and RESPA are two different regulations, so yes you are required to have one.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2169100 - 03/20/18 12:53 PM Re: Director & Affiliated Business Arrangement JG2
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,958
Bloomington, IN
19(e)(1)(vi) Shopping for settlement service providers.

7. Relation to RESPA and Regulation X. Section 1026.19 does not prohibit creditors from including affiliates on the written list required under § 1026.19(e)(1)(vi)(C). However, a creditor that includes affiliates on the written list must also comply with 12 CFR 1024.15. Furthermore, the written list is a “referral” under 12 CFR 1024.14(f).
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2169110 - 03/20/18 01:10 PM Re: Director & Affiliated Business Arrangement JG2
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,643
To put it another way, having your director on your list of service providers is a referral subject to Section 8 of RESPA which prohibits unearned fees and kickbacks. To ensure you don't have a Section 8 violation, you must provide the affiliated business arrangement disclosure at the time of referral (in accordance with 1024.15 of Reg X). Without the AfBA disclosure, the bank would be violating Section 8, which is a very big deal.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2169201 - 03/20/18 05:55 PM Re: Director & Affiliated Business Arrangement JG2
JG2 Offline
New Poster
Joined: Mar 2018
Posts: 2
Thank you all!!!

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