Marketing Guide March 2025 - Flipbook - Page 25
respa
What is it?
RESPA stands for the Real Estate Settlement Procedures Act.
It is a federal law enacted in the United States to protect
consumers during the homebuying process. RESPA prohibits
the giving or receiving of kickbacks, fees or anything of value
in exchange for referrals related to real estate settlement
services. This is to prevent unethical practices and ensure fair
competition in the real estate market.
Best Practices
• Know all parties involved and what everybody is contributing, i.e., other
sponsors, and if sponsorships are equal or are categorized by tiers, etc.
• Pay third party vendors, where applicable, for advertising rather than
another settlement service provider.
• Attend the event you contribute to.
• Remove 'referral partner' and 'preferred lender' from your vocabulary.
• Document all transactions / invoices and details on what the payment was for.
Things to Avoid
• Giving or accepting cash payments / gifts / gift cards.
• Endorsing business partners.
• Showing or inferring exclusivity.
• Defraying settlement service provider costs that would otherwise be
incurred within the normal course of business.
Full RESPA Reference Guide
FirstBank
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