I know it's a violation to receive referrals from a builder and then provide them with a discount on their personal loan. However, is it also a violation to give the builder a discounted rate on their new construction project that is a commercial loan and then hope they refer business to the bank. There is no agreement between builder and bank. Thanks

Sure sounds like a kickback to me. Or at least the anticipation of one.

I agree. There doesn’t need to be an agreement.

Regulation X states that “an agreement or understanding for the referral of business incident to or part of a settlement service need not be written or verbalized, but may be established by a practice, pattern, or course of conduct. When a thing of value is received repeatedly and is connected in any way with the volume or value of the business referred, the receipt of the thing of value is evidence that it is made pursuant to an agreement or understanding for the referral of business.”

If this is all strictly commercial projects, I don't see how RESPA enters into the picture. If it is construction of dwelling in anticipation of referral of the permanent financing, then yes...it's a problem.