Question of the Week

  • QUESTION: The bank has tickets to the state football team games. A director asked for the tickets to give them to a realtor who provided the bank with a large number of prospective customers. Is this a violation of RESPA Section 8?

    ANSWER:

    Giving a gift is not necessarily a violation of RESPA. However, providing tickets to games or other events could be viewed as a thing of value. In this case, it is of particular concern as the realtor has given the bank a large amount of business, even if the bank did not have an arrangement for the business. When considering whether the bank should take action regarding a RESPA violation, the bank should consider:

    • Determining the facts of the situation e.g., under what circumstances were the tickets provided; to whom, when, and what was the volume of business prior to and subsequently
    • Documenting the event (or all events, as applicable)
    • Determine whether the banks needs to takecorrective action by training all directors on Section 8, and others as applicable
    • Updating policies and procedures on section 8
    • Ensuring that there is complete understanding regarding who can have the tickets (or similar items)
    • Ensuring that any use of the tickets (or other items) is approved before being used
    • Review with bank’s legal counsel and/or regulator any concerns

    Reference: Regulation X: 12 CFR 1024.14 See also: RESPA: 12 USC Section 2607

     



Question of the Week Archive

  • QUESTION: How are inspection and handling fees for a construction loan shown on the disclosures?

  • QUESTION: Is the bank required to accept any private flood insurance?

  • QUESTION: The bank is developing a social media page for children to assist children’s understanding of saving money. What should the bank consider?

  • QUESTION: Are new disclosures required to be provided under the Military Lending Act for a renewal of a covered transaction?

  • QUESTION: Is a depositor permitted to have multiple savings accounts and use them to exceed the transfer and withdrawal limitations?

  • QUESTION: What is the OFAC 50% rule?

  • QUESTION: If a lender does not offer escrow account services to residential borrowers, do loans subject to integrated mortgage disclosures have to disclose property taxes, insurance and assessments on page 1 of the LE or CD?

  • QUESTION: The bank’s CEO received tickets to a major league baseball game from a friend. Is this a violation of bank bribery act?

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