MartyPrecisionFundingUSA
Joined: 10 Jun 2008
Posts: 1
Location: Romoland, CA
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| Posted: Fri Aug 01, 2008 5:02 pm Post subject: CAR Violating RESPA? |
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A Realtor and I were having a debate on weather or not a mortgage broker can provide a fee to a Realtor for loan services (a kickback, as I call it.)
Based on what I know about RESPA, you can't, but here is what is poste don the Sanat Barbara AOR website. Thoughts?
Quote:
MORTGAGE BROKER AND LENDER
Q 33. Can a real estate licensee demand or accept a referral fee from a mortgage broker or lender?
A No, if the transaction falls under RESPA. However, a real estate agent may receive a bona fide payment for loan origination services actually performed. HUD has issued guidelines for this type of arrangement.
First, HUD has set forth a list of 14 loan origination services:
Taking information from a borrower and filling out the loan application;
*Analyzing the borrower’s income and debt and pre-qualifying the borrower to determine the maximum mortgage the borrower can afford;
*Educating the borrower in the home buying and financing process, advising the borrower about available loan products, and demonstrating how closing costs and monthly payments may vary under each product;
*Collecting financial information and related documents as part of the application process;
Ordering verifications of employment and verifications of deposit;
Ordering requests for mortgage and other loan verifications;
Ordering appraisals;
Ordering inspections or engineering reports;
Providing disclosures (Truth-in-Lending, Good Faith Estimate, etc.) to the borrower;
*Assisting the borrower in understanding and clearing credit problems;
*Maintaining regular contact with the borrower, REALTORS®, and lender during the loan process to apprise them of the loan status and to gather additional information needed;
Ordering legal documents;
Determining whether the property is located in a flood zone or ordering such service; and
Participating in the loan closing.
Next, HUD has stated that it would generally be satisfied if all of the following 3 conditions are met:
The third party takes information from the borrower and fills out the loan application;
The third party performs at least 5 additional items on the above list; and
The fee paid is reasonably related to the market value of the services rendered.
*Note: If the 5 items performed are the counseling services asterisked above, HUD expressed concern that the fee paid could be construed as payment to steer a borrower to a certain lender. Hence, under this specific situation, the third party must: (1) give the borrower the opportunity to consider products from at least 3 different lenders; (2) receive the same compensation regardless of which lender’s product is ultimately selected; and (3) ensure that any payment made for the “counseling type” services is reasonably related to the services performed, and not based on the amount of loan business referred to the lender.
The above guidelines are set forth in HUD’s Informal Opinion Letter No. 13 (February 14, 1995).
For non-RESPA transactions, California law does not expressly prohibit a real estate agent from receiving a referral fee from a mortgage broker or lender.
http://www.sbaor.com/displaycommon.cfm?an=1&subarticlenbr=78 |
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