Section 8 / General – 6. Under RESPA Section 8, can a lender or other settlement service provider give a gift, refund, or discount to a consumer for using that lender or provider?

Compliance > Regulation X - RESPA
Q:   Under RESPA Section 8, can a lender or other settlement service provider give a gift, refund, or discount to a consumer for using that lender or provider?
 
A:   Generally, yes.
 
RESPA Section 8 does not prohibit a lender or other settlement service provider from giving a consumer a gift or an incentive (e.g., a discount, refund of fees, chance to win a prize, etc.) for doing business with that entity. However, RESPA Section 8 prohibits, for example, giving an incentive to a consumer in exchange for the consumer referring other business to that lender or other settlement service provider.
 
Other federal and state laws may also have restrictions that apply and should be consulted.
 
 
This Q&A was based on information contained in the Consumer Financial Protection Bureau’s (CFPB) Real Estate Settlement Procedures Act FAQs that were issued in October, 2020, which may be updated from time to time.  This CFPB issuance may be found here:  https://www.consumerfinance.gov/policy-compliance/guidance/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/#respa-section-8-general
 

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