We have all heard a million times that compensating a Real Estate Agent for a mortgage referral is a violation of RESPA Section 8. The critical part of that rule is the term ‘Referral’. Being compensated for a mortgage referral is absolutely 100% a violation of RESPA Section 8, i.e. illegal. So how is RELO legal?
There are some loan types that are ineligible for RELO Funding. These are easy to identify and make up a small percentage of the mortgage market. Ineligible loan types;