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#383947 - 07/11/05 04:15 PM RESPA- Section 8
Anonymous
Unregistered

I remember hearing at a seminar, that the FDIC deemed providing doughnuts to realtors on Fridays a violation of Section 8. Does anyone have that cite? I have reviewed Appendix C of RESPA and cannot find it. Thanks for your help!

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Lending Compliance
#383948 - 07/11/05 04:26 PM Re: RESPA- Section 8
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Section 8 prohibits the provision of anything of value in exchange for referral of business.

I think doughnuts would be an extreme example, but if you only give doughnuts to those realtors who send you loan referrals, then it could be an issue.

If you are going to provide Friday snack foods, make sure you spread the doughnut wealth to realtors regardless if they send you business or not.

I used to joke about RESPA as the "Buy a doughnut, go to jail" law. Geez - who thought it would be taken so literally?
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

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#383949 - 07/12/05 10:20 PM Re: RESPA- Section 8
Anonymous
Unregistered

You might argue that many of the doughnuts were consumed by realtors that did not send you referrals, thus no violation. Looks like a difficult trail of crumbs to follow to find a violation.

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