RESPA’s Anti-Kickback rules
From the U.S. Dept. of Housing and Urban Development
Section 8(a) of RESPA, 12 U.S.C. §2607(a) prohibits the giving or receiving of any fee, kickback or thing of value for the referral of settlement service business. Many brokers devise very creative ways to try to avoid RESPA requirements. However, free advertising, trip opportunities, desk or office rentals, stock in a company, or other benefit are considered things of value under RESPA and are just the same as if you provided cold hard cash in exchange for the referral of settlement business.
Affiliated Business Arrangements
RESPA permits referrals between settlement service providers in an Affiliated Business Arrangement (AfBA) if 3 conditions are met:
- The consumer receives written disclosure of the nature of the relationship
- The consumer is not required to use the services of the affiliate
- The only thing of value received from the affiliate arrangement, other than payments for actual services rendered, is a return on the ownership interest.
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