Being a mortgage broker in Ridgefield, CT, I enjoy hosting broker open houses.  I am able to meet new realtors and really get to know the realtor I am hosting the open house with.  Several agents and brokers have told me that they are fearful of commiting a RESPA violation by inviting me to host with them.  Below is the information that clarifies this...

4. Q. When a title company hosts an agent luncheon at an open house, they are providing food in hopes

of meeting agents - just as Realtors hold open houses. Doesn't this need to be looked at in a much more

practical way and allowed under RESPA?

A. If a real estate agent requested that a title company pay for a lunch that the real estate agent was

hosting, and the title company agreed, the payment would be a thing of value for, or in the hopes of, the

referral of settlement service business. If, however, the title company paid for the lunch, but attended the

open house and gave a brief presentation, or prominently displayed a sign indicating the title company's

name and distributed brochures about the title company during the open house, there is a reasonable

argument that this activity is a form of advertising and therefore acceptable under Section 8(c)(2). Again,

real estate agents should apply a rule of reason. If these activities and materials are present, a casual

lunch of sandwiches for $200 likely would be acceptable. A catered lunch by an expensive restaurant at

a cost of $800, however, would more likely be viewed as a referral fee.  It is indeed within RESPA

regulations to do this.