Reply To: RESPA – Yard Signs?


Section 8 violations occur when a thing of value is given in return for a referral of mortgage business. In the described situation, the bank is arguably receiving a thing of value – the exclusive right to place an advertisement on the property. but there does not appear to be referral back to the builder. If the bank is making concessions on a builder loan and then the builder grants the exclusive right to list the property, then the quid pro quo requirement of Section 8 appears to come in to play.