Real Estate Settlement Procedures Act (RESPA)

Section 8 of the Real Estate Settlement Procedures Act (RESPA) prohibits certain activities in connection with federally related mortgage loans. These prohibitions include fee splitting, as well as giving or accepting a fee, kickback, or thing of value in exchange for referrals of settlement service business. RESPA also has specific timing requirements for certain disclosures. These requirements apply to applications taken electronically, including via social media.


The Highlights:

  • RESPA prohibits fees, kickbacks, or any other thing of value for referrals. Lenders should monitor social media for any signs of kickbacks or shared advertising from their sales team.