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#2231832 - 02/26/20 10:30 PM RESPA Kickback
Gertie Offline
Joined: Jan 2016
Posts: 83
I have an unusual situation. We have a loan customer that asked one of our loan officers for the name of an insurance agent for hazard insurance on his new home. Our loan officer provided names of 3 agents. The customer chose one of them & told the insurance agent that our LO referred him. As a thank you for the “referral” the insurance agent has kindly provided our LO with a gift basket to present to the customer at loan closing, as though the gift basket came directly from our LO (Bank). There is nothing in or on the basket in reference to the insurance agent.

Is anyone of the opinion there is a RESPA violation? The LO is not directly receiving a thing of value. Our Code of Ethics is not affected due to the value of the gift not exceeding what is allowed under our Code of Ethics Policy.

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#2231838 - 02/26/20 11:13 PM Re: RESPA Kickback Gertie
TomS Offline
Gold Star
Joined: Jan 2004
Posts: 318
The gift is for the customer, not the LO, so I don't see a RESPA issue. And you can let the customer know at the time you give them the gift that it is from the insurance agent, not the bank.

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#2232859 - 03/12/20 03:02 PM Re: RESPA Kickback Gertie
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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