Posted By: MonicaMc
Section 8 violation? - 05/19/21 09:05 PM
We have a bit of an unusual situation.
We have a person that has applied with us to become a loan originator. (She is not currently, and has never been, an originator - but that's another story...)
Her husband has a civil service job and also has a side business for installing Christmas lights and mowing. Our applicant is not an owner of the business, but she is on the business bank accounts as a signor.
One of the husband's side business' long time customers is a real estate agent in town. This agent has been referring customers to the side business and in turn, receives the light installation and mowing services for free.
Would we have any potential RESPA violations here since our applicant is not an owner of the business? If nothing else, we would likely require her to be removed from the business bank accounts so there are no questions, if she were to be hired.
We have a person that has applied with us to become a loan originator. (She is not currently, and has never been, an originator - but that's another story...)
Her husband has a civil service job and also has a side business for installing Christmas lights and mowing. Our applicant is not an owner of the business, but she is on the business bank accounts as a signor.
One of the husband's side business' long time customers is a real estate agent in town. This agent has been referring customers to the side business and in turn, receives the light installation and mowing services for free.
Would we have any potential RESPA violations here since our applicant is not an owner of the business? If nothing else, we would likely require her to be removed from the business bank accounts so there are no questions, if she were to be hired.