What is RESPA deal with concerning Lenders and Realtors?

Asked by Jason And Tana, Carson City, NV Tue Mar 29, 2011

Are Realtors allowed to ask or suggest you go with a local lender?

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Marge Bennett, Agent, Fort Myers, FL
Tue Mar 29, 2011
BEST ANSWER
yes, but we can't get "referral" fees or kickbacks from them. We can suggest those who we think will do a good job for you, but in the end it is your choice. Sometimes on REO's the bank/seller will require you to be pre-qualified with them or a specific lender, but you still don't have to use them to get financed, they just want to know that if your lender can't or won't , they can finance you and close the deal.
0 votes
Laura Feghali, Agent, Stamford, CT
Tue Mar 29, 2011
Hello Jason and Tana,
I know that when I'm working with first time home buyers that they welcome my suggestions for mortgage brokers/lenders in the area that my clients have used in the past and have been happy with their service. I see no issues with giving them lender contact information as long as you don't push them into selecting a particular one and allow them to make their own choice.
Hope this helps.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Mar 29, 2011
For additional information regarding RESPA, see link...
http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm
0 votes
Stephen Linc…, Agent, Carson City, NV
Tue Mar 29, 2011
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.
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