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#2208368 - 03/11/19 04:55 PM Builder Discount
luvmesomecomplliance Offline
New Poster
Joined: Mar 2019
Posts: 1
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

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#2208392 - 03/11/19 07:32 PM Re: Builder Discount luvmesomecomplliance
Norman Paperman Offline
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Norman Paperman
Joined: Aug 2012
Posts: 1,636
48.934476, -114.343735
Sure sounds like a kickback to me. Or at least the anticipation of one.
Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


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#2208417 - 03/11/19 09:22 PM Re: Builder Discount luvmesomecomplliance
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
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.”
David Dickinson

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#2212334 - 04/29/19 05:46 PM Re: Builder Discount luvmesomecomplliance
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,643
The Swamp
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's a problem.
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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