DENVER -- Co-marketing agreements can help agents, brokers, and teams reach a larger audience of prospective buyers. But when forming such an agreement with a settlement service, it’s not enough for the parties involved to know what’s in RESPA (the Real Estate Settlement Procedures Act), a 44-year-old law designed to keep settlement services honest for consumers. "The CFPB doesn't even know what RESPA says," noted attorney Brian Levy with Kattan & Temple, who moderated the panel. "You need to focus on how it's being interpreted." Joe Welu, Mark Meyer, Lori Day and Brian Levy on the co-marketing RESPRO panel Levy helmed a panel of experts -- Lori Day, VP of marketing and sales strategy at HomeServices Lending; Joe Welu, founder and CEO at Total Expert; and Mark Meyer, founder and CEO at MLinc Solutions -- who explained what kind of mistakes the CFPB's auditors are looking for when they investigate a co-marketing agreement and how agents, brokers, and their settlement ...
- Keep auditable records of your co-marketing agreements that outline who ordered the materials, who paid for them and who created them.
- The CFPB will assume a referral arrangement exists unless you can prove otherwise. Be very careful with referrals and leads, and never use "preferred provider" language in your marketing materials.
- Be able to articulate the value of the co-marketing arrangement using metrics.
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