We have been approached by our local realtor group to sponsor a continuing edcuation seminar for the realtors. Is this considered a kickback?

I don't think that it would fall under RESPA, would there be any financial benefit?

I was thinking that this would not be allowed because the realtor could steer business our way and our sponsorship could influence this. Am I stretching on this one?

As long as the seminars are open to all Realtors then I see no problem.

What if it is for one specific real estate agency only?

If you're doing it for a specific agency, at no charge, then IMO it could be construed you're doing it in anticipation of referrals from that agency. However, I seem to remember something about "education", however I can't find anything. Does anyone have any insight on this?

bump

RESPA - 3500.14 (g) (vi)
(g) Fees, salaries, compensation, or other payments. (1) Section 8 of RESPA permits:

(vi) Normal promotional and educational activities that are not conditioned on the referral of business and that do not involve the defraying of expenses that otherwise would be incurred by persons in a position to refer settlement services or business incident thereto;


http://www.fdic.gov/regulations/laws/rules/6500-2520.html#6500res3500.14

Just don't serve food!

thanks Bonnie - I did find something that states that it is permissible if "a mortgage lender sponsors an educational lunch for real estate agents. If, however, the mortgage lender subsidizes the cost of continuing legal education credits, this activity may be seen as defraying costs the agent would otherwise incur, and may be characterized as an unallowable referrral fee." The source is from a Realtor publication and the author is a realtor though.

You know.... there's lunch and then there's LUNCH! I've always said that RESPA Section 8 should be dubbed the "Buy a donut, go to jail." law!

From 3400.14 of RESPA:

(d) Thing of value. This term is broadly defined in section 3(2) of RESPA (12 U.S.C. 2602(2)). It includes, without limitation, monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person's expenses, or reduction in credit against an existing obligation. The term "payment" is used throughout §§ 3500.14 and 3500.15 as synonymous with the giving or receiving any "thing of value'' and does not require transfer of money.