Ask the RESPA Doctor!

Written By: Dr. Gary Lacefield

Dr. Gary Lacefield, is President of RiskMitigation.net. As an ex-HUD investigator, currently training HUD personnel, he also advises mortgage lenders, Realtors® and title companies on issues regarding RESPA and Fair Housing. Fair Lending Training DVD with testing capability available. Click here for more information.

This monthly column is published on the 20^th of each month. Please submit your questions and/or comments here, for the RESPA expert.

Question #1:

I recently purchased a program that is used as an incentive for realtors to send me their clients. It is a 7-year follow-up mail campaign to the clients on the realtors behalf. Once the Realtor refers a client and they close their loan with me, I mail their client 9 greeting cards per year for 7 years. These cards are supplied to me, signed by the agent, and mailed, addressed, and administered by me. My name or company name is not on the cards or correspondence at all - only the real estate agent's information.

I am curious, because I have not implemented the program because it appears to be a RESPA violation, although the salesperson specifically stated it is not. It appears to me the Realtor is definitely getting something of value for the referral.

Please tell me if this is a RESPA violation.

Question #2:

There is a company that owns a real estate company, title company, and mortgage company. If the annual capture rate is at a certain level for their office on the title and/or mortgage company, the broker makes higher bonuses. Is this a violation of RESPA since the brokers actually make more money if the title company and mortgage company are being used by the real estate agents in the office?

Question #3:

Can I pay for advertising my name and mortgage broker logo on a real estate website without violating RESPA?

Continue this story to read Dr. Gary Lacefield's answer's.

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