Mortgage Promotion

If a bank offers a new thermostat for loans applied for and originated during a specific time period, would this violate any RESPA rule? The thermostat would only be given to originated loan customers. 1099s would be given.

If you're thinking about Section 8, that's not an issue because the borrower isn't a settlement service provider.

Thanks Richard. Do you see any issue from any other regulatory perspective?

Doesn't this fall under the 1099-MISC with the $600 threshold?

No. The thermostat we're offering falls below that threshold.

Our marketing department came up with the smart idea to give away a lawnmower and offer no closing costs with every new HELOC closed back in the 90's. So, once word got out, we had a lot of applications and new HELOCs. However, about 80% of the HELOCs were never drawn on or were closed within a year. A lot of happy customers mowing their lawns while reading their free appraisal. It was not one of better ideas to come out of marketing.