The question in the title was asked during the ATS Secured webinar, “RESPA Section 8: Understanding Marketing and Advertising Regulations,” presented by Marx Sterbcow of the RESPA Resource Law Center.
Marx Sterbcow’s Answer:
“Generally yes, but subject to the following restrictions under RESPA: any marketing, advertising or promotional products done between a loan originator and a title company must split the cost between the parties.
“The shared expenses must be a proportional split to the amount of space each party has on the ad or marketing piece and it be the fair market value.
“Example: If the loan officer and title company both share a marketing flyer where they both occupy 50% of the space on the flyer, they each would be required to pay their respective 50% of the total cost of the flyer. If the loan officer only occupies one quarter of a page then the split allocation of expenses the loan officer would be responsible for is 25% and the title company must pay the remaining 75%.”
Loan marketing regulations are a big part of TRID, with RESPA Section 8 being a highly scrutinized part of the rule. The CFPB issued a bulletin in October 2015 following TRID’s implementation, reminding the industry about the importance of avoiding kickbacks and other illegal marketing activities.
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