Posted By: Red Raiders
Section 8 Violation? - 08/15/14 01:48 PM
Local realtor has asked the bank to sponsor a hole at their annual golf outing where agents and clients will attend.
Section 8 violation or ok?
OK if the bank pays a fair market value for the promotion. Realtors and bankers can do business together. What Section 8 is after is business deals that are based on referrals, future business ties, etc. If someone pays fair market value for a thing of value, this is fine.
Posted By: Red Raiders
Re: Section 8 Violation? - 08/15/14 02:12 PM
Thanks, David. With this being such a hot topic right now I just wanted to be sure that we were ok since this was just one realtor being involved.
Posted By: Red Raiders
Re: Section 8 Violation? - 09/04/14 01:14 PM
Piggybacking on this because of the similarity....
We have been approached by a realtor to advertise on her Zillow and Trulia websites as a preferred lender. I don't know specifics at this point but I assume the fees are paid directly to the websites (and may offset the amount the realtor pays) and we will have our lender's picture and contact info on the realtor page.
Any issues with this?
Posted By: Red Raiders
Re: Section 8 Violation? - 09/05/14 01:08 PM
I have a little bit more information from this. Zillow is saying we can "co-market" with the realtor and pay up to 50% of the agents Zillow monthly fees and be in compliance with RESPA.
We aren't getting 50% of the webpage space so would we be in violation of Section 8 if we paid 50% in the "co-marketing" venture?
Well, you said "up to 50%" so why would you pay 50% if you are not getting 50% of the ad? You should pay for what you are receiving, no more, no less.
Posted By: Red Raiders
Re: Section 8 Violation? - 09/05/14 01:44 PM
That's my thought as well. Zillow says their attorneys say that a bank can pay 50% of the cost and not violate RESPA. I had never seen 50% referenced in RESPA, only that you pay for what you get so I thought I would throw it out here.
Does anyone have lenders that "co-market" with Zillow (or others like it)?
In my opinion, if you pay more than what you receive, the realtor is benefiting.
Posted By: rlcarey
Re: Section 8 Violation? - 09/05/14 04:08 PM
Zillow says their attorneys say that a bank can pay 50% of the cost and not violate RESPA.
Business Rules:
Rule Number #1: Never, ever trust the other person's attorney.
That also happens to be #2 and #3.