Affiliated Business Relationship Guidelines

Affiliated Business Relationships are permissible under RESPA (Real Estate Settlement Procedure Act) as long as the relationship follows specific guidelines.

Here is the link to those regulations: https://www.consumerfinance.gov/rules-policy/regulations/1024/15/

Guidelines

• Must Disclose: The realty company making the mortgage referral must provide to its clients an Affiliated Business Arrangement Disclosure statement explaining the nature of the relationship including ownership and financial interest.
• No Obligation: The realty company making the referral must make clear to clients that they are not obligated to use a particular provider referred by realty company
• Value Received: The realty company will receive value back from their affiliated business relationship through payments and a return of ownership interest.
  • Payments to realty company: Payments from ABR Lending to realty company’s duly appointed agent or contractor for services actually performed in the origination, processing, or funding of a loan. (RESPA Link: https://www.consumerfinance.gov/rules-policy/regulations/1024/14/#g)
  • Realty companies who are percentage owners with ABR Lending are able to receive dividends, capital or equity distributions, related to ownership interest. (RESPA Link: https://www.consumerfinance.gov/rules-policy/regulations/1024/14/#g)