Splitting Advertising Costs - RESPA Violations?

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Question:

Some of my loan officers split the cost of advertising with real estate offices. Some examples are billboards, website links and subdivision advertising in home sale books. If we are worried about RESPA violations, does it matter if we make the check out to the real estate office instead of the advertising company? Does it matter what the description says on the invoice?

Answer:

If you are making the check directly to the real estate office without an invoice that identifies that the payment is for advertising and the proportionate costs, then how can you "prove" you are paying for advertising and not just paying a referral fee? Common sense would dictate that you properly identify the payment so there would be no question what it is for.

First published on BankersOnline.com 4/16/07