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Navigating today’s business under 50-year-old RESPA

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Industry News
Monday, July 6, 2026

October Research, LLC., will host a webinar “Life After RESPA: Addressing Modern Practices the Rule Missed” on July 9 beginning at 2 pm ET. Speakers Ken Trepeta, president and executive director of RESPRO, and Rich Andreano, senior counsel at Ballard Spahr, will address issues that include exemptions to the rule’s kickback and referral fee prohibitions and when activities outside RESPA are still subject to anti-inducement laws, among others.

RESPA News sat down with Trepeta and Andreano ahead of the webinar to get their responses to some key issues.

Regulators have increasingly viewed RESPA through the lens of anti-steering. How does this perspective affect common business practices such as online recommendations, preferred-provider relationships and digital marketing?

“The approach of regulators to treat RESPA as an anti-steering statute creates the need to carefully assess common business arrangements when a settlement service provider is involved, particularly given the broad view of regulators regarding what constitutes a referral. Recommendations of a particular provider, or identifying a provider as a preferred provider, are viewed by regulators as referrals. As a result, care must be taken to assess if a regulator may deem that a thing of value is being provided for the referral activity.

“Digital marketing can be different if it is clearly structured as a marketing/advertising arrangement and not a referral arrangement. The Consumer Financial Protection Bureau (CFPB) has indicated that whether a particular activity is a referral or a marketing/advertising service is a fact-specific question for purposes of analysis under RESPA Section 8. Clearly identifying paid marketing/advertising arrangements as such to consumers can be helpful.”

RESPA was written long before today’s internet and social media environment. How do its core principles apply to modern practices such as online reviews, social media posts, likes and digital referrals?

“Years ago, when the Department of Housing and Urban Development (HUD) had responsibility for RESPA, a HUD official observed that the internet created many interesting dynamics for RESPA Section 8 purposes for which there was no guidance. The official indicated that HUD would move forward to provide guidance. However, soon after that, Dodd-Frank was enacted. With RESPA moving from HUD to the CFPB, HUD did not move forward with providing the guidance, nor has the CFPB.

“Had the internet technology of today existed in 1974 when RESPA was adopted, Section 8 likely would have looked a lot different than it does today, particularly in terms of what is a referral and exemptions from the kickback and fee-splitting prohibitions. A sensible view of RESPA Section 8, which was adopted in the context of title agencies paying cash to real estate agents for referrals of business, would allow for much of the activity that occurs on the internet. However, with the overly broad view taken by regulators that RESPA is an anti-steering statute, the industry must be cautious.”

Does the free or discounted exchange of consumer data, CRM platforms, or proprietary software function as an illegal "thing of value" given in exchange for ongoing business referrals?

“Back when movie theater tickets were printed on paper, a HUD official commented that not only is the ticket a thing of value, the paper that the ticket is printed on is a thing of value. In short, regulators take a broad view of what constitutes a thing of value. As a result, a regulator likely would take the view that providing these items for free or below cost in return for referrals of settlement service business would present an issue under RESPA Section 8.” 

Click here to register for the webinar, which is free for RESPA News subscribers.

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Senators ask CFPB acting director to explain reason behind mass deletion of website content


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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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