By
Knowledge Coop
•
Oct 3, 2024
A thing of value under $25 is safe, right? Nope. Common misconception that has spread around the industry like wildfire. Any thing of value for a referral is potentially up to $10,000 in fines and/or a year in prison. Here is the CFPB's explanation on the section. We hired a RESPA Ref to highlight potential violations, come see how it turned out...
RESPA Violations are a hot topic in the industry, and people need to know that giving or receiving any thing of value in exchange for a referral of business is a violation for a Loan Officer.
Sometimes, all you need is the right training! If you still need to get your 2019 CE follow this link to get all the Online CE you need: Online Training!
MLO: Clay, I really appreciate you coming in.
Clay: Yeah, of course, of course.
MLO: I am so sorry I had to twist your arm so hard for that last.
Clay: Yeah, I didn't know you meant literally.
MLO: You know what, as a thank you for all our referral partners, I like to give them a hat. Oh, those are a snapback. Oh, the rest were ref. Okay, apparently a hat is a thing of value.Sorry about that, man. You know what, how about a cup of coffee?
Clay: I can use a pick me up.
MLO: I give coffee to everyone who comes into the office, so it's certainly not a thing of value for a referral partner. You did say you liked ice in your coffee, right? Fine, is there anything I can give this guy? Can I--can I shake his hand and say thank you? You know what? Thank you, sir. Just take the card. Chipotle, you're gonna love it.
Clay: I can't take it.
MLO: Why can't you take the car?
Clay: This is my bad hand.
MLO: How was I supposed to know that?
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