Last Month's Q&A Answered

The following question appeared in the Q&A section of Banking Spectrum's Report Bulletin last month. Compare your answer to the correct answer below:

Q: A realtor has approached us and is interested in making our bank the preferred lender for his clients.  He advertises on the web through a site that he pays for.  We would be willing to pay for our name being placed on the site and our payment would be used by the site to reduce the realtor’s fee for being listed as a realtor in his community.  Do we have a possible RESPA issue here?

A: Yes. This could be deemed an indirect payment to the realtor for the referral of business.  Not permitted under Section 8 of RESPA or Regulation X Section 1024.14.  A co-marketing exception might not apply since the bank would not be offering or providing reciprocal services alone or with the realty agent for the agent’s services.