Marketing service agreements can spell RESPA trouble

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Question:

We have been informed that marketing service agreements are illegal. We have a provider that is proposing a third-party agreement. He says this arrangement is not a marketing service agreement and is therefore legal. Your thoughts?

Answer:

Marketing Service Agreements (MSA) typically involve third parties that receive payments for marketing or promotional services that are actually payments for referrals. Whether referred to as an MSA or a Third-Party Agreement the arrangement can present problems.
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