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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 35390
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I own a real estate brokerage and I also have an in house

Customer Question

I own a real estate brokerage and I also have an in house loan officer, and we broker loans through a few different lenders. I normally charge my agents a company fee of $495 when they close a real estate transaction with my brokerage. I would like to waive this fee if their borrower uses my in house loan officer to do the loan. This would be an incentive on my part to have my agents promote the in house loan officer. My question is if this would be considered a RESPA violation.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  LawTalk replied 6 months ago.

Good afternoon,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today. I am a CA licensed attorney for more than 3 decades, and I handle Real Estate law. I also was a CA licensed Broker in the past.

The type of business venture that you are proposing is most likely illegal under the federal Dodd-Frank Act, and is a violation of section 8 of RESPA. By waiving the fee, you would essentially be giving a kick-back to your agents and that would be a clear violation of federal law.

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

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