In an interpretive rule released on June 25 in the Federal Register, HUD warned that marketing services performed by a broker or agent on behalf of the HWC are considered referrals under RESPA and payments made to the broker or agent for these referrals would be considered illegal kickbacks. HUD noted that its interpretation was influenced by the fact that brokers and agents are in a unique position to sway a homebuyer or seller into selecting a settlement service provider and a recommendation by the broker or agent is commonly accepted by the buyer or seller.
Who should watch:
- Real estate agents
- Real estate brokers
- Home warranty companies
- Mortgage brokers
- Settlement services providers
The industry is concerned about what the rule means for current arrangements with HWCs and if or how some of the more general language in the interpretive rule could be applied to other marketing agreements.
The rule raised lots of questions:
- What are compensable and non-compensable services in HUD’s eyes?
- Does the interpretive rule have implications for other marketing agreements?
- Will home warranty companies have to retool their businesses?
- What practical effect might these rules have that HUD did not anticipate?
- Where is the line between illegal referral and legitimate marketing service drawn?
- What is reasonable compensation?
Find out the answers to these questions and more in HUD’s Interpretive Rule and the Future of Marketing Agreements, an upcoming Webinar from RESPA News and October Seminars.
Our expert presenters address:
- What is an interpretive rule and how much weight does it carry?
- Overview of HUD’s HWC interpretive rule
- What new elements the rule introduces
- Analysis of the “gray” areas of the new rule and industry concerns
- Actions listeners should take to review current marketing agreements
One of the nation’s most widely respected and most recognized RESPA attorneys, Phil Schulman’s national practice focuses on real estate finance and mortgage banking, with specialties in RESPA, TILA and administrative and regulatory compliance matters.
He represents companies in the mortgage lending, title insurance and real estate industries in connection with administrative and regulatory compliance matters; defends companies in connection with governmental audits, investigations and enforcement proceedings; develops and analyzes proposed business plans, and drafts the related agreements and disclosures, based upon applicable federal and state laws, regulations and rules; and assists in litigation involving consumer class action lawsuits and commercial claims.
Phil is the former general counsel to the Home Improvement Lenders Association and was the former assistant general counsel of the Inspector General and Administrative Proceedings Division, U.S. Department of Housing and Urban Development.
Director Real Estate Services
National Association of Realtors
Ken has been the Director of Real Estate Services for the National Association of Realtors® since June of 2007. In this role he is charged with covering the broader real estate industry for NAR. Prior to this, Ken was the Regulatory Policy Representative for NAR handling Regulatory and Administration relations on business issues and federal housing policy.
From 2005 to April 2006, Ken was a Vice President for Government Relations at JP Morgan Chase where he tracked tax policy, housing and mortgage issues, and legal reform issues as well as special projects.
Ken has a bachelor of arts in economics, political science, and law and society from the State University of New York at Binghamton (1992). He has a juris doctor from Hofstra University School of Law (1995) and is a member of the bar in New York and the District of Columbia.
RESPA News, October Research Corporation
Kelly McCarel is the editor of RESPAnews.com
and RESPA News Monthly
at October Research Corporation. She reports on the latest RESPA developments through RESPAnews.com
, the first and only online publication dedicated to covering all of the issues and news related to the Real Estate Settlement Procedures Act. Prior to joining October Research, Kelly worked in a corporate environment, serving as a communications specialist and handling much of the company’s internal communications. She has also served as editor of the Cleveland Bar Journal at the Cleveland Bar Association, and as associate editor of a statewide legal newspaper in Ohio.