Q: What payments are not prohibited under RESPA Section 8(c)?
A: RESPA Section 8(c) provides a list of payments (provided or received) and arrangements that are not prohibited under RESPA Section 8. These include:
- Fees paid to attorneys for services actually rendered. 12 USC § 2607(c)(1)(A).
- Fees paid by a title company to its duly appointed agent for services actually performed in the issuance of a title insurance policy. 12 USC § 2607(c)(1)(B).
- Fees paid by a lender to its duly appointed agent for services actually performed in the making of the loan. 12 USC § 2607(c)(1)(C).
- Bona fide salary or compensation or other payment for goods or facilities actually furnished or for services actually performed. 12 USC § 2607(c)(2).
- Payments under “cooperative brokerage and referral arrangements or agreements between real estate agents and brokers.” 12 USC § 2607(c)(3).
- Affiliated business arrangements, subject to specified conditions. 12 USC § 2607(c)(4).
- Other payments and classes of payments adopted by regulation after consultation with other specified federal agencies and officials. 12 USC § 2607(c)(5).
Regulation X, 12 CFR §§ 1024.14(g)(1)
implement these RESPA Section 8 provisions and provide details on the payments that are not prohibited by RESPA Section 8, identified above. These provisions also specify additional payments and activities that are not prohibited by Section 8, such as: (1) normal promotional and educational activities, subject to certain conditions, and (2) an employer’s payments to its own employees for any referral activities. 12 CFR §§ 1024.14(g)(1)(vi) and 14(g)(1)(vii). Appendix B to Regulation X
provides further guidance on these payments and activities.