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markaplus
25 Posts |
 Posted - 02/12/2008 : 08:04:59 AM
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| I have received about three fliers in the past month from the same lending company stating that I will receive a "$300 Gift Card upon closing of my loan not yet in process". Would you consider this a kickback and a RESPA violation? What do you guys think? |
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acibella
618 Posts |
Posted - 02/12/2008 : 09:14:08 AM
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Nope. Not even a little bit. You can entice a borrower to do business with you any way you like. You could give them a free house if you wanted to/could afford it. If they were giving the $300 card to Realtors/CPA's/CFP's etc to send their clients to them THAT would be a respa violation. RESPA law has zero to do with borrowers and what you can offer them.
AC |
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mganovsky
2074 Posts |
Posted - 02/12/2008 : 11:05:33 AM
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| You can give the borrower any thing you want, I for example advertize once in a while paying for the appraisal, credit to be givin at closing of course. Or offer a $500 credit at closing towards closing costs. You just can not pay any service providers in the mortgage transaction for giving you the business. |
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j.touch
208 Posts |
Posted - 02/12/2008 : 11:22:45 AM
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| rule of thumb.. benefit borrow ok. benefit all other party violation |
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Cool Hand Luke
289 Posts |
Posted - 02/12/2008 : 11:25:10 AM
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| Some lenders will consider it fraud if you give a borrower money for a down payment or for closing costs. Fannie Mae allows up to 3% contribution. |
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markaplus
25 Posts |
Posted - 02/12/2008 : 12:06:09 PM
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| That seems crazy, but oh well. |
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liverichly
3936 Posts |
Posted - 02/12/2008 : 12:06:59 PM
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| Would this have to be reflective on the HUD-1? |
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maclin
658 Posts |
Posted - 02/12/2008 : 12:11:53 PM
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| no violation there at all example free apraisal paid for at closing ...this is a rebate so if that's legal so is any other type of rebate to the client now get creative and rebate away just don't give away the store......GOOD LUCK |
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j.touch
208 Posts |
Posted - 02/12/2008 : 12:14:35 PM
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| as long as the rebate is not cash. but a credit towards services or discounts and discount for using a particular party is prohibited unless disclosed and given options |
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