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#63869 - 02/26/03 04:30 PM RESPA Section 8 - Phone Message
SJB Offline
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SJB
Joined: Jun 2002
Posts: 1,210
California
We have an AfBA with a realtor network. One of the realtors want to have one of our loan officers record a message for her "info-on-hold" phone system. The officer would give her (and our) name and phone number and talk about all the wonderful loan products available to help that caller buy some real estate. Callers could touch another number on their phone and get even more details about loan products.
The realtor is not going to charge the LO or us to have this info on her system. To my knowledge there is no agreement or understanding regarding referrals from the loan officer to the realtor.
To me this appears to be on the edge of a Section 8 problem but would like other's feedback.

Thanks!
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Lending Compliance
#63870 - 02/26/03 05:19 PM Re: RESPA Section 8 - Phone Message
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I agree. I would be cautious of this arrangement, even though there is no expressed agreement for referrals that certainly is the "implied" agreement, and the bank is getting something of value, free advertising. (BTW, the telephone message, if longer than 30 seconds, would have to meet all the advertising reguirements.)
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#63871 - 02/26/03 05:38 PM Re: RESPA Section 8 - Phone Message
Anonymous
Unregistered

Yes, the bank is getting free advertising, but I don't see where it is in exchange for referrals. It seems to me the referrals are going the other way - by providing the bank's message on his/her phone system, the realtor is referring people to the bank. Of course, you could argue that the realtor is being provided with a thing of value (an on-hold message) in exchange for referrals. Either way, I agree with Dan that caution is warranted.

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#63872 - 02/26/03 10:50 PM Re: RESPA Section 8 - Phone Message
SJB Offline
Diamond Poster
SJB
Joined: Jun 2002
Posts: 1,210
California
Thanks, to me it is in that gray zone so I will advise and the powers that be will do as they please.

Don - I have not seen the final script (or heard it) yet so I don't know how long it will be but I have cut out all trigger terms . . . . so far.
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My opinions are not legal advice and are worth what you paid for them.

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