The Bank Agent Program system was designed specifically to include you, the Mortgage Originator, to expand your market place geographically through affiliation with a Federal Bank Agency Program. You can use your origination skills you already have and the client's trust you've already built while gleaning referrals in different locales as well as leveraging yourself with lead generation. The Bank Agent Program provides the processing know how to offer the best available loan, a streamlined electronic approval to benefit your client while paying you origination commission in full compliance with RESPA. At The Bank Agent Program we believe that it's your turn to get paid!

We allow you to remain in your current Origination atmosphere while opening the entire country to you under an Agency relationship with a Federally chartered bank(s).

You continue to originate just as you have, as a Mortgage Broker, working with the Wholesalers that you previously have done business with. We have internalized a full, world class Processing and Fulfillment Center.

RESPA allows for payment of fees to a licensed person that does certain actual, necessary and distinct work of the transaction.

Section 8 of the Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to prohibit so-called "kickbacks" and "referral fees" among settlement service providers that Congress determined could unnecessarily increase the cost of settlement services to consumers.

The Department of Housing and Urban Development (HUD), in conjunction with State Attorneys General and State Insurance Commissioners. In 1990, HUD established a special RESPA Enforcement Office, which receives thousands of complaints alleging RESPA violations (primarily from competitors) every year.

Criminal Penalties: Section 8 reads: "Any person or persons who violate the provisions of this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both, for each violation". There is no requirement that your violation be "knowing" or "willful" for criminal penalties to be imposed.

Civil Penalties: RESPA also allows individuals to recover three times the settlement service charge plus legal fees through civil actions for violations of Section 8.

Debarment: Violations of section 8 of RESPA can lead to debarment (i.e., loss of the right to participate) from government loan programs.

Basic Prohibition: Section 8 makes it illegal to give or receive any thing of value (or split fees) pursuant to an agreement or understanding to refer real estate settlement services to a particular entity in connection with a federally related mortgage loan as long as no RESPA exception is available.

Elements of a Section 8 Violation: The key elements of a Section 8 violation are highlighted on the previous page in bold. Let's look at each of these elements:

Things of Value: You must give or receive a "thing of value" in exchange for the referral. However, HUD has broadly defined "thing of value" to include virtually anything that would be worth giving or obtaining, including money, property, salaries, discounts, credits, dividends, interest free loans, eligibility for a lottery with a one in a million chance to win a TV set, frequently flier miles, a profit-making opportunity, and much more.

Referral of A "Settlement Service": You must "refer" "settlement service" business to violate RESPA. A referral means any oral or written action directly to a person that has the effect of affirmatively influencing the selection by any person of a provider of settlement services when the person will pay in part or whole for such service. HUD has broadly defined "settlement service" to include any service provided in connection with a prospective or actual settlement, including the origination, processing or funding of a federally related mortgage loan or related services, mortgage brokerage services, title services, legal services, document preparation services, credit reports and appraisals, home inspection/pest inspection, mortgage insurance, homeowners insurance, homeowners warranties, mortgage life insurance, real estate brokerage services, real property tax services, and any other real property tax services, and any other settlement service which a settlement service provider requires a borrower to pay.

Agreement or Understanding: You must have an "agreement or understanding" with another person to give or receive a thing of value in exchange for referrals or to split fees. However, the agreement or understanding need not be formal or written. A practice, custom or knowing wink may be sufficient in HUD's eyes.

A Federally-Related Mortgage Loan: The settlement service you refer (or have referred to you) must involve a "federally-related mortgage loan" for the referral to violate RESPA. HUD considers the term "federally-related mortgage loan" to include most loans for the purchase of 1-4 unit residential dwellings, including first mortgages, subordinate liens, and home equity loans. However, unsecured lines of credit, most construction loans, commercial loans, and secondary market transactions (the sale of a loan that occurs after closing and is not table-funded) are not considered settlement services involving a "federally-related mortgage loan" and therefore are not covered by RESPA.

Both "Giver" and "Receiver" and Liable: RESPA violations are a "two way street." HUD will consider the party who offers the referral fee and the party who accepts the referral fee to be equally liable and subject to the above penalties.

Payments For Services Rendered or Goods Actually Provided: RESPA exempts payments that represent the fair market value or bear a reasonable relationship to the value of services or goods actually provided. In determining the "fair market value" of a service, however, HUD will not give value to a "referral" itself, to services that are not necessary, or to services that are duplicative with services already provided or received. In addition, HUD has special rules that detail certain "core" title services and certain "core" mortgage services that must be preformed before the provider can receive payment from another provider for performing those services. Consult with company counsel for these special rules.

Cooperative Brokerage Agreements Between Real Estate Brokers and/or Agents: RESPA exempts referral fees between or among real estate brokers and/or their agents (but see Fact/ Comment Illustration 13)

Certain Promotional and Educational Activities: RESPA exempts promotional and educational activities if they are:

Normal

Not conditional on the referral of business; and

Do not defray the expenses that otherwise would be incurred by those in a position to refer settlement business.

Employee Compensation: HUD currently exempts from RESPA any payment by an employer to a "bona fide" employee (i.e., loan officer, title agent, branch manager) for referrals of business to the employer and its affiliated settlement service companies. This exemption does not extend, however, to real estate sales associates (who are independent contractors) or franchisees.

Consumer Rebates: HUD has traditionally taken an informal position that rebates to the customers of a settlement service provider (not to the provider himself) do not violate RESPA.

Returns on Ownership Interest: Congress exempted from RESPA in 1983 returns on ownership interest (i.e., dividends, profits) in other settlement service providers under the so-called "affiliated business arrangement" exemption. Consult with legal counsel regarding federal and any state requirements under this exemption.

Yes, a full disclosure form must be completed and signed by the client to conform with RESPA regulations. A good faith estimate, a fee affiliation disclosure are presented among others.

No. It may well be to your advantage to keep your state license.This is especially true IF you are currently associated with another mortgage company. FDIC bank and their agency relationship provides exemption from state licensing. No other license is required.

No training is necessary. You do the selling, counseling and customer service. You can complete your portion of the transaction by simply following the instructions given to you on the task list. All supporting documents you will need are built right into The Bank Agent Program task list. This is a RESPA requirement. NO exceptions. Once you have completed a task simply check it off. We perform the more complicated processing portion that requires lender training. This makes your transactions easier, faster and more profitable.

After the closing the original closed file along with the commission check will be shipped to the corporate office processed and dispersed, typically within the week. It is bank policy to pay the 1st and the 15th. You will receive your compensation no more than 3 business days after the Agent has been paid by the bank.

We recommend that you submit your wiring instructions and/or bank account information along with this application for rapid dispersal.

The Bank Agent Program is approved to fund a large variety of loans. When you work with The Bank Agent Program, our advantages become your advantages. Your in-house processor can also be of assistance is helping you select the best loan for your client. You are welcome to learn as much about loan programs as you wish. You will find that if your client qualifies, you can offer it.