RESPA Section 8 Compliance – Understanding RESPA Requirements for Avoiding Section 8 Violations

Date Recorded: July 17,2025
Presenter: Kylee Durbin, CRCM, Manager, Forvis Mazars, LLP

A two-hour webinar on understanding the requirements and prohibitions of RESPA related to kickbacks, unearned fees, and affiliated business arrangements.

Section 8 of RESPA prohibits kickbacks for business referrals and unearned fees. It’s easy to understand that “money under the table” is prohibited, but the rule is much more expansive than just money and covers any “thing of value.” What is a “thing of value”? What will an examiner be looking at to see if there has been an illegal referral? What is the “split” fee rule?

Also, in today’s high interest rate environment, applications have decreased. One of the ways that loan officers are trying to encourage business is by entering into agreements with other providers in an attempt to cross-market each other (marketing service agreements (MSAs)), as well as purchase leads from various websites. This not only indicates potential Section 8 issues, but also may present concerns under the Telephone Consumer Protection Act (TCPA).

Financial institutions often grapple with trying to reconcile the scope and vagueness of the rule with the complexity of real-life situations. How does an institution make sure that they are in compliance?

This webinar will discuss the complete picture of Section 8 and present everyday examples that may violate Section 8 rules.

WHAT YOU WILL LEARN:

• Which transactions are subject to Section 8
• Prohibition against referral fees
  • Definitions of “thing of value,” “referral,” and “agreement or understanding”
  • Examples
• Prohibition against split fees; Examples
• When gifts and promotional activities are permitted
• MSAs; lead generation versus referral; Potential TCPA rules
• CFPB bulletins and FAQs; Other important agency bulletins, documents, and releases; and the Supreme Court interpretation of “split fee”
• Implications of Section 8 on business relationships
• Affiliated business arrangements and the ABA disclosure
• Penalties for violations