Our mortgage lender wants to be advertised on a realtor's website. The realtor also advertises other mortgage lenders on the web page as well, as " a list of approved mortgage lenders." Although, this phrase is not specific to just our mortgage lender there is the implication of exclusivity, though not "express." The customer may choose to select from the list.

1. If the customer is required to select a lender from the listed of approved mortgage lenders, then there is a violation of RESPA -right?
2. BUT if the customer has a choice, either from the list of approved mortgage lenders, or another financial institution not listed on the approved list, then there is no violation- right?

What are your thoughts, insight?

thanks,

What are you paying the realtor to advertise your bank on their website?

"No person shall give and no person shall accept...." Are you paying a market rate for your advertising space on the realtor's website? "Buying" is different from "giving" or "accepting" a gift.

It depends on how this is all structured and how the realtor web page operates.

JPC - How so - care to explain?

Thanks for your responses. The mortgage lender said it was no cost - which is a violation of RESPA. With joint marketing (mortgage lender placement on the realtor website) the cost must be shared - pro rata share. Then getting back to the way the lender is described on the website in the initial question. The lender cannot be described as "list of approved lenders" on the website?

Was just trying to make a point that not enough is known to make a conclusion.

"List of approved lenders" isn't necessarily a directly prohibited way to mention other settlement service providers that appear on a website of a settlement service providers, as far as I know. However, it does sound "eerily" similar to "Preferred" lender/provider, which has popped up in several RESPA cases as a phrase the CFPB has a problem with.

As you noted, the fact that your LO would get this advertising benefit for free is likely an issue, as the implication would likely be a defraying of expenses in return for referrals.

My question is approved by whom - the real estate agent? Who would care that they have approved anyone. If it is worded incorrectly to lead a normal person to think the bank is "approved" by someone else, then I think it is a problem.