Is giving a "referral fee" to an existing customer (through a marketing/promotional offer) of a bank for referring someone to the bank for a mortgage a violation of RESPA Sect. 8? The referring customer is not in anyway connected to a settlement service required by the bank and the new mortgage customer would receive the same dollar value through a reduction of closing costs. The referral fee is paid by the bank with no cost to the borrower and the borrower would be fully aware of the referral fee paid to the existing customer. Is a customer referring someone to a bank for a mortgage considered a settlement service?
Disclaimer : All messages made available as part of this forum, including opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and do not necessarily reflect the views and policies of HUD or the U.S. Government. HUD cannot attest to the accuracy, completeness or usefulness of any messages. This is a monitored forum; posts are subject to approval.