Are marketing agreements legitimate under the Real Estate Settlement Procedures Act (RESPA)? What is the right way to do one?
Guidance issued by the U.S. Department of Housing and Urban Development (HUD) in 2010 that is being followed by the CFPB called into question whether and under what circumstances real estate professionals can receive money for marketing other settlement services and service providers. This has led to much confusion in the industry and numerous lawsuits.
NAR believes that real estate professionals and brokers should be able to be compensated for services performed and marketing done. NAR supports better guidance from the Consumer Financial Protection Bureau and specifically rejects the contention that the marketing of settlement services is a mere referral.
NAR will continue to work with CFPB and our industry partners to ensure that appropriate guidance is provided to industry. NAR will also work with Congress to ensure that any future legislative changes improve RESPA without imposing undue burdens on NAR members.