RESPA, the real estate settlement and procedures act can be a bit overwhelming, and it is easy to be in violation without realizing it.
On the Loan Officer end, we can NOT give Realtors ANYTHING of VALUE to you because you are in position to refer settlement services to the loan officers.
A 'thing of value' can take many forms on a transactional basis or cumulatively, including, 'monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person's expenses, or reduction in credit against an existing obligation.' -12 CFR 1024.12(b).
Simple things that we see often, like the loan officer making Open House Flyers for you, paying for some advertisement, or even a small gift card would still be considered a thing of value.
If the loan officers received any business from the realtors, it could be determined to be a RESPA violation because the loan officers would be giving a thing of value in connection with the referral of loan origination business.
Needless to say, the real estate and mortage police are very active these days... Please don't ask me to do anything that put me and my license in jeopardy.
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