Section 8 violation?

Posted By: MortComp

Section 8 violation? - 06/29/21 07:18 PM

If a realtor on Zillow or other similar real estate within their comments lists that if the buyers use our loan officer they will receive a $1000 discount towards closing costs, would that be a Respa issue?
Posted By: rlcarey

Re: Section 8 violation? - 06/29/21 07:22 PM

No - but you have to ask yourself and the loan officer a hard question - why?

Benefits that accrue solely to the borrowers are not a Section 8 issue - but people are not in the habit of giving away money for nothing..
Posted By: Skittles

Re: Section 8 violation? - 06/29/21 07:41 PM

I agree with Randy. Why would this realtor offer this - and who is paying the $1,000? Is it the realtor or the bank?
Posted By: Inspector

Re: Section 8 violation? - 06/29/21 08:39 PM

To pile on here, the comment in itself would not constitute a Section 8 violation but the comment sounds like a referral. So to Randy's point, you have a referral so do you have a thing of value? An agreement or understanding? If so, then you have a Section 8 violation.