06/04/2007
Our Chairman of the Board owns a real estate company, our bank and the mortgage company. The realtor at the subdivision wants to put out a brochure to customers that provides a discount on construction costs if the customer uses the bank for the construction loan and the mortgage company for the permanent. There will be a stated discount to customers that use other bank/mortgage companies, but the amount will be less. Is there a RESPA violation lurking here somewhere? Also, the realtor (and/or the bank) is going to have to provide the affiliated business arrangement notice when the referral is made, is that correct?
05/14/2007
What constitutes goods and services performed for payment of the referral fee under RESPA?
04/16/2007
We want to sell mortgage applications (received online) that we deny to a subprime lender. What are the compliance issues that we will encounter?
10/09/2006
We want to pay our bank employees a fee for referring mortgage applicants to our bank's mortgage department. I realize there is an exception for this in RESPA, however, must the fee be paid regardless if the bank actually closes a mortgage? The lender wants to pay only when it's a done deal; others believe it must be paid regardless.
10/09/2006
I recently was assigned the task of reviewing all our bank's loans for documentation and compliance errors. My question is on a 2nd mortgage home equity loan do we need the affiliated business arrangement when we make the referral to our title company that is owned by a board member? We do the ABA on the refi and purchase side but I have not seen the ABA in any home equity files that I have reviewed.
08/14/2006
I have been pulling out my hair trying to figure out where I can find an answer for this question. One of our Loan Officers wants me to figure out what the guidelines are for giving gifts to auto dealers who give us loan referrals. I'm lost and I've even contacted my regulators and they didn't have any idea. What are the limitations and guidelines, and what Reg mandates them?
05/22/2006
We refer customers to an outside vendor for Merchant Services. The company we deal with has created an incentive program for these referrals. They have submitted one of our employees a check in the amount of $50 for a referral that resulted in a sale. I have read and understand the RESPA implications in regards to referrals in the mortgage lending area, but what about the Deposit side of the bank? Do we allow the employee to accept the check?
02/27/2006
A mortgage company has approached our bank wanting to pay a specific employee a referral fee, if we would forward real estate loan applications we have turned down to them. I do not see how this is a legal process given Section 8 of RESPA's prohibition of referral fees. The only way I can see it would be legal, is if forwarding the application to the mortgage company would not be defined as a settlement service. I think it would be.
10/17/2005
I have two questions -- <ol><li>Can you give a referral fee to someone who has given you a referral for a loan (i.e., an accountant, apartment locators, etc.)? If you can give referral fee what are the guidelines (is there ia cap, etc)? <li>Point commission for the Loan Officer -- how much can you charge legally (is there a cap)? I normally see "2" on front and back, but when you have a sub-prime lender, how fair is that since the borrowers are already in financial straits? </ol>I would appreciate hearing from you. Can you let me know if there are compliance agencies that can advise a small mortgage broker company without charging very high fees?
09/19/2005
Does RESPA allow the payment of Cash to a client for a Mortgage Loan Referral? I have always been of the understanding this is not allowed under RESPA, however, there are several competitors in my market area actively engaged in paying referral bonuses and I would like to know if I'm correct or if they are acting unlawfully.