BrokerageIndustry News

When it’s OK to eat the shrimp

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

"Eat the jumbo shrimp," a nationally recognized expert on the Real Estate Settlement Procedures Act said during a Webcast seminar Thursday, "but don't let an affiliated company pay for your holiday party." The advice was part of a Webcast by the National Association of Realtors Thursday on the do's and don't's of RESPA, which governs kickbacks and referrals in the real estate industry, among other things. Realtors had the opportunity to ask questions about what is acceptable business practice under RESPA's rules when dealing with affiliated companies such as mortgage lenders and title insurers. Fees or gifts in exchange for referral business are violations of RESPA. Kickbacks in the real estate industry have taken center stage this year, sparked by a Colorado inquiry into title insurance practices. Just last week, Prudential Locations LLC agreed to pay $48,000 to settle a U.S. Department of Housing and Urban Development investigation into alleged kickbacks. With such developments in m...