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.
I recently attended a compliance workshop. During the workshop there was an internet compliance discussion regarding weblinking to realtors. It was stated that this practice could be considered a violation of Sec 8 of RESPA. I am in the process of doing some research on this subject but need further clarification. We do provide links to all local realtors on our website and if we are indeed in violation, would like to get that taken care of before we are cited.
What role can financial institutions play with their business customers in ecommerce? What are the revenue opportunities?