The RESPA Doctor is In.

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.

Questions

Question #1: Can I make a donation to a non-profit for every loan I am referred? The donation would be made in my name (or company name) so that I receive the tax deduction not the referrer. For example, if my local Homebuilders Association has a non-profit educational foundation can I make a $100 donation to a local school for every loan a teacher refers or a donation to charity for any referrals they can generate?

Question #2: I (a mortgage broker) have been approached by a realtor who referred me to her buyer and pont blank told me that she expected a referral fee. I of course turned her down and she was fair enough to let me keep my lead. She told me that she always receives a referral fee either by filling out a loan application herself with the agent or directly from the broker. I am wondering now: By asking me for a referral is she in RESPA violation? And is there such a thing as making it "okay" to pay a referral by having her fill out the application?

Question #3: I have a free FSBO package put together with what I think has all the bells and whistles. But I'm not sure if I can promote this free of charge like I am doing. Although the sellers are not service providers, do you think this is a RESPA violation? In readying the FSBO First Aid Kit, it talks about FREE Home Flyers. Can we offer to home sellers for free? RESPA states that since there was a cost of making the flyers (paper, ink, etc.) that the seller needs to pay that cost. This would not pertain a financing flyers as long as it only had my information and financing options on it. Also, if we were using a toll-free call capture system; if I put on there my financing info with amenities about the home then the seller would have to pay their portion. I was thinking that I was charged by the seller (let's say $35) to put a sign in there yard offering my toll-free info service, that I could offset that with flyers and their cost of the toll-free info line up to $35 dollars. What are your thoughts on this?

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

Read More