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