Did we violate Section 8 of RESPA?

Question: I recently had lunch with a real estate agent to talk about doing some co-marketing.  We discussed the potential RESPA concerns and decided to not move forward at this time.  At the BSA Training and Banking Regulations Compliance Consulting AdobeStock 85260529 300x200 - Did we violate Section 8 of RESPA?end of lunch, the agent picked up the check.  Did we violate RESPA’s Section 8?


Answer:  Since the purpose of the lunch was to discuss co-marketing and not as payment for the referral of business, you’re likely okay.  Section 8 restricts the payment of anything of value in exchange for the referral of a settlement service.  So, if it looks like business is being referred and something of value (e.g. lunch) is being exchanged, a reviewer could infer from all of the circumstances that there is a kickback occurring.


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