THIS IS WHY WE NEED RESPA REFORM

From online blogs today, we see horrendous discussions of “how do we get around the RESPA Law?” Here are some prime examples:

Builder Incentives

Any ideas on how to give an incentive to get a builders business RESPA legal? As an incentive for the builder to give me his business, I would like to purchase the buyers home warranty. Is there a way to show this transaction on the hud that I am paying for it, or does it have to disclose that the builder is paying it but then I slip him under the table which I know is a violation of RESPA. Does any one have any ideas to get a builder’s business and for those of you who are successful with builders?? Ahh….other than giving good service!!!!

I have always used a ABA (affiliated business agreement) or AMA (affiliated marketing agreement) where I would give the builder half a point to a point once the loan sells. Always seems to work when you dangle the carrot in their face.

I used to work for Countrywide and for their builders they give major incentives for the builder to send them business. Some include but aren’t limited to: Having a seasonal crawfish boil where the originator and branch office cover the total expense for the party, cut all lender fees except the origination, hosting wine and dinner parties for the builders realtors and office staff. And from what I understood when I was working for C/W, to make it RESPA legal, all the builder had to do was put up a C/W banner at their model homes and the builder and C/W called it a JOINT MARKETING AGREEMENT.

Not only do we need RESPA reform, we need RESPA Education and some serious RESPA enforcement.

It is UNBELIEVABLE to me that conversations like this are taking place online. Are these people CRAZY? Do they not take RESPA seriously? Do they want to go to JAIL? Obviously, they have no ethics. Go get em RESPA police. They deserve whatever they get.