Are loan originators and title companies allowed to share the expense of marketing materials?

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 person has on the ad or marketing piece and it be the fair market value. For example: if the loan officer and title company both share an marketing flyer where they both occupy 50% of the space on the flyer then 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%.

Note: This transcript has been edited from the March 2015 RESPA Section 8 webinar for clarity and completeness.

Answered By: Marx Sterbcow