This may be more of a rant than anything but does anyone else have a mortgage department that insists on giving small gifts to realtors? Flowers, candy, grilling supplies, candles.....but they cost less than $25 how can it be a problem? Is my rant unjustified?

RESPA has no mention on minimal amounts - it refers to thing of value. Reason, if the realtor is delivering applications to the bank, they may not be acting in the best interest of the customer, because of Flowers, candy, grilling supplies, candles... etc.

RESPA makes it a felony ($10,000 fine and one year in prison) to give or accept any fee, kickback, or thing of value pursuant to any agreement or understanding for the referral of a real-estate settlement service or to receive any portion of the charge for a settlement service other than for services actually performed. The basic rule is that the referral of a settlement service is not a compensable act. If a referral fee or compensation of any kind is given for the referral of a settlement service, both the payor and the payee have violated the law

(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 §§1024.14 and 1024.15 as synonymous with the giving or receiving of any “thing of value” and does not require transfer of money.

Thank you both for letting me know I am not ranting over nothing. I was very clear in my message that there was not minimum amount-still overridden. "But everyone does it" won. At least these conversations were in writing.

The only exception I could see is if these gifts are used for general marketing. If your LO bought flowers, candy, etc... for all realtors in the area, regardless of referral of business, I think you could make an argument that the things of value weren't given for referrals.

Then why give the flowers in the first place?

You need to pay very close attention to actions by the CFPB. I don't recall HUD imposing CMPs on anyone in twenty years for a Section 8 violation. The CFPB does so now regularly. This is no longer something that gets the nudge-nudge wink-wink treatment.