VIEWpoint Issue 1 | 2022
Brief Insights | Meeting Provider Relief Fund Reporting Requireme...
VIEWpoint Issue 2 | 2021
On Nov. 6, 2019, the Federal Deposit Insurance Corporation announced a settlement with HomeStreet Bank (Bank) in Seattle, Washington, for violations of the Real Estate Settlement Procedures Act (RESPA). The settlement included a civil money penalty of $1,350,000. The Bank entered into co-marketing arrangements with real estate brokers to jointly market services online. The Bank also rented space in real estate broker and home builder offices (known as desk rental agreements). These arrangements and agreements violated RESPA because the bank fees to the real estate brokers and home builders for the referral of mortgage loan business. The Bank has subsequently cancelled all such arrangements. RESPA permits co-marketing arrangements and desk rental agreements if the fees paid are reasonable in relation to the fair market value of the marketing or rental cost. It is a violation of RESPA if the fees paid for the arrangement or agreement exceed the fair market value, and instead the fees are for the referral of mortgage business.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).