I've been reading some threads on the providing of the AfBA disclosure and one I came across had some comments from Lucy Griffith about providing the disclosure to the insurance affilite for the referral of homeowner's insurance. She also indicated that she felt that if the insurance company referred a customer to the bank or mortgage company for a mortgage loan, the insurance company would provide the disclosure as well. Is anyone actually doing that with their insurance company? Not the referral to but the referral from?

I also have a question about the timing of delivery of the disclosure. If our teller or Personal Banker makes the referral are we correct in that they would provide the disclosure at the time of the referral? How do other banks make the form available to their tellers/CSRs, etc? Our loan process is centralized so that the front-line employees are not able to print the form right then so we are looking at building it into the deposit platform so that the disclsoure would "pop up" if you will when the teller/PB knows that they would be initiating the referral. They are required to track their referrals through the sales portion of our deposit platform so we think this would be the appropriate place to have the form. Also the person receiving the form is required to sign it? Would appreciate anyone else's process for how they do this. Thank you as always.

I'm following up with my original post above. The question has come up about the completion of the form. The instructions provide for the naming of a Subject Property. What if the individual does not yet know the property but just wants to talk with someone? Can we put "To Be Determined" or does there have to be an actual property address indicated? Perhaps we are taking the definition of referral incorrectly and is the "referral" only in reference to where there is likelihood a closing could take place? As I stated above, our bank employees get paid incentives for "referrals" so we want to make sure we are handling this properly. Thank you for your thoughts.

When discussing RESPA and AfBa together, you have to look at the meaning of RESPA: Real Estate SETTLEMENT Procedures Act. The AfBa only pertains to SETTLEMENT service providers. For example, Flood Determination company that are affiliated with your institution, Title Companies and Settlement Agents affiliated with your company. You may was to review the definition of Affiliate in RESPA. So, my response would be that you are confused with the term refferal as it relates to Affilliate in RESPA.

I'm trying to figure this out and was going back through the materials from a BOL telephone seminar. RESPA is applicable to "federally related mortgage loans" which are loans that are to be secured by a 1st or subordinate lien or refinance of any secured loan on residential real property. One of the exemptions would be temporary financing (construction (non-perm)unless it meets other conditions). Therefore, for purposes of the AfBA we would not provide the disclosure unless the customer has an actual property that they are either purchasing or refinancing and we "referred" them to our mortgage affiliate for those services. Correct or no?