Requiring the buyer to use a lender of seller's choice: A RESPA violation or not?
I recently wrote an offer on a property for some clients of mine, and received a counter offer.
One of the items in the counter offer stated that the buyers must use one of two of the seller's preferred lenders, or the contract would be subject to cancellation.
Now I've had plenty of occasions where the seller has asked that the buyer obtain a pre-qual or double-app with a preferred lender, but this is the first time they've flat out required that they get the loan with them.
Why am I feeling that I'm 90% sure that this is a RESPA violation?
I can see clearly on the RESPA site that requiring them to use a title service of seller's choice is a violation, but I'm having trouble finding the exact section that states requiring a preferred lender to obtain the loan is a violation.
Am I wrong?
Or if it's not an exact RESPA violation, is it a violation of the Fair Lending Act?
I'm actually going to contact HUD on Monday to see if they can verify for me.
Need a consensus and input from my ActiveRain Peeps on this.