For anyone who has shopped for a new construction home and was told that by using the builder's
"preferred lender", they would receive great incentives, if not, they would pay a higher price, not get special perks, whatever.  It always struck me as being a bit on the shady side.  I am glad that RESPA finally is helping the consumer the leeway to find their best advocate!

Effective Jan. 16, 2009 a new home builder can no longer use "disincentives" to steer their customers to their preferred mortgage company.  In practice, builders have for years offered huge monetary incentives to steer customers to their preferred/affiliated lenders. Likewise, if the customer chose not to use the preferred/affiliated lender a huge "disincentive" was created in that the monetary incentives were taken away.

HUD makes it clear that economic disincentives that are used to improperly influence a consumer's choices are as problematic under RESPA as are incentives that are not true discounts. Under the new rules a consumer would be more likely to shop for a home and the loan and settlement service that is best for them, free from the influence of deceptive referral arrangements.

RESPA Final Rule: http://edocket.access.gpo.gov/2008/E8-27070.htm