RESPA Section 8 is the federal provision most often invoked in LO-realtor co-marketing compliance. The statute prohibits two specific behaviors: giving or receiving any “thing of value” in exchange for the referral of mortgage settlement business, and splitting fees other than for services actually performed.
Common scenarios that trigger Section 8 review
- Co-branded flyers with disproportionate cost split favoring the realtor
- Office space rentals below fair market value at a partner’s brokerage
- Marketing Services Agreements (MSAs) that pay for “services” not actually performed, or pay above fair market value
- Lender-paid expenses for realtor parties, events, or trips that benefit the realtor disproportionately
- Free or below-market lead generation services provided by lenders to real estate agents
What RESPA-compliant co-marketing looks like
The arrangement must reflect actual value exchange, not subsidized marketing for the referrer. Cost splits should match the proportion of value each side receives. A 50/50 visual treatment on a co-branded flyer should have a 50/50 cost split. Documentation must include the written agreement, cost-split records with invoices, value justification, and explicit language stating no expectation of referrals.
Recent enforcement
The CFPB has been actively pursuing RESPA Section 8 cases through 2026, with settlements ranging from $1M to $50M for individual lenders. Some enforcement actions name individual LO employees, not just the institution.
RESPA-compliant co-marketing built in
BNTouch’s Just Listed by Partners feature tracks cost-split and audit trail automatically.
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