Industry News

Detroit real estate brokers settle kickback charges

HUD agreements follow previous settlement with Metropolitan Title Co.

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The Department of Housing and Urban Development today announced separate settlement agreements totaling $80,000 with four Detroit area real estate brokers for violations of the Real Estate Settlement Procedures Act, known as RESPA. The settlements follow a related agreement this summer with Metropolitan Title Co., which HUD determined paid these real estate brokers for the use of conference rooms at rates substantially higher than their fair market value. HUD reached agreements with the following real estate brokers in the Detroit area: RE/MAX Masters; RE/MAX in the Hills; Hometown One Associates (doing business as Remerica Hometown One); and Schweitzer Real Estate (doing business as Coldwell Banker Schweitzer Real Estate). In each case, HUD said it determined that these brokers received conference room rental fees from Metropolitan in excess of the general market rate for comparable room rentals. Each of the four brokerage companies agreed to settle without admitting wrongdoing. ...