{"id":23004,"date":"2023-12-05T15:41:31","date_gmt":"2023-12-05T15:41:31","guid":{"rendered":"https:\/\/www.anthonydidonato.net\/wordpress\/?p=23004"},"modified":"2023-12-05T15:41:32","modified_gmt":"2023-12-05T15:41:32","slug":"welcome-clarity-on-respa","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/","title":{"rendered":"Welcome Clarity on RESPA"},"content":{"rendered":"\n<p>Tips for complying with rules on marketing service agreements.<\/p>\n\n\n\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>An MSA is an agreement under which one person or entity agrees to market or promote the services of another in exchange for compensation. An example is a mortgage broker who promotes the services of a real estate broker, or vice versa.<\/strong><\/li>\n\n\n\n<li><strong>MSAs should focus on marketing, not referrals. Marketing is not directed to any one specific person; Instead, it\u2019s targeted to a wider audience.<\/strong><\/li>\n\n\n\n<li><strong>Payments under an MSA should not be based on the number of referrals made to the other party but should instead reflect the fair market value of the marketing services by using factors such as time, difficulty, or the size of the target audience.<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>In a welcome move for the real estate industry, the Consumer Financial Protection Bureau has issued guidance for how settlement service providers may properly engage in marketing service agreements, rescinding its previous bulletin warning of the substantial legal and regulatory risks presented by MSAs, which caused many real estate professionals to stop using them.<\/p>\n\n\n\n<p>An MSA is an agreement under which one person or entity agrees to market or promote the services of another in exchange for compensation. One example is a mortgage broker who promotes the services of a real estate broker, or vice versa. Real estate professionals must ensure their MSAs comply with the Real Estate Settlement Procedures Act or face fines up to $10,000 per violation and up to a year in prison. Here are four takeaways from the CFPB\u2019s guidance to help you incorporate MSAs into your business while avoiding RESPA violations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">1. MSAs are not illegal per se under RESPA.<\/h4>\n\n\n\n<p>The guidance states that a lawful MSA is an agreement for the performance of marketing services where the payments under the MSA are reasonably related to the value of services performed and are distinguished from unlawful referral arrangements. Determining whether an MSA itself is lawful, or whether payments or conduct under an MSA are, will be analyzed under RESPA Section 8, and as explained in the guidance, will depend on the facts and circumstances.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2. MSAs should focus on marketing, not referrals.<\/h4>\n\n\n\n<p>Understanding the difference between referrals and marketing is key to a compliant MSA. Referrals are any oral or written action directed to a person that affirmatively influences the selection of a particular settlement service provider. Marketing is not directed to any one specific person; instead, it\u2019s targeted to a wider audience.<\/p>\n\n\n\n<p>An MSA that pays for the \u201cservice\u201d of handing a settlement service provider\u2019s brochure to a client would be impermissible under Section 8(a) because it\u2019s directed at one person and therefore constitutes a \u201creferral.\u201d An MSA that pays for the display of the provider\u2019s brochures in an office lobby or at an open house is permissible as \u201cmarketing\u201d because the act is directed to the public.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3. Payments under an MSA must be for actual marketing services.<\/h4>\n\n\n\n<p>Section 8(c)(2) of RESPA allows \u201cpayment &#8230; for services actually performed.\u201d Such services must not be nominal or duplicative and their performance should be clearly delineated, including how often and by whom, and demonstrable.<\/p>\n\n\n\n<p>For example, if a real estate professional agrees to promote a title insurance agency on social media twice per quarter, the parties should keep a copy of the posts on file. If the services called for in the MSA are not performed, but the agency still pays the salesperson, then the MSA would likely be deemed an impermissible referral scheme.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4. Compensation must be reasonably related to the services performed.<\/h4>\n\n\n\n<p>Payments under an MSA should not be based on the value or number of referrals made to the other party but should instead reflect the fair market value of the marketing services by using factors such as time, difficulty, or the size of the target audience.<\/p>\n\n\n\n<p>For example, if a real estate broker agrees to display a mortgage company\u2019s ad on the brokerage website, but the fee is multiple times higher than a non-referring business paid for a similar ad, that would not meet the reasonable value standard, and could be construed as a payment for referrals in violation of Section 8(a). By carefully structuring and implementing MSAs, real estate professionals may continue to use them as a valuable tool to expand networks and build business.<\/p>\n\n\n\n<p>For more information about RESPA, visit <a href=\"https:\/\/www.nar.realtor\/real-estate-settlement-procedures-act-respa\">nar.realtor\/RESPA<\/a>.<\/p>\n\n\n\n<p>\u00a9National Association of REALTORS\u00ae<br \/>Reprinted with permission<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tips for complying with rules on marketing service agreements. Key Takeaways: In a welcome move for the real estate industry, the Consumer Financial Protection Bureau has issued guidance for how settlement service providers may properly engage in marketing service agreements, rescinding its previous bulletin warning of the substantial legal and regulatory risks presented by MSAs, &hellip; <\/p>\n<p><a class=\"more-link btn\" href=\"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,8],"tags":[5,32,4,9],"class_list":["post-23004","post","type-post","status-publish","format-standard","hentry","category-news","category-real-estate-tips","tag-anthony-didonato","tag-news","tag-real-estate","tag-tips","item-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Welcome Clarity on RESPA - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/welcome-clarity-on-respa\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/welcome-clarity-on-respa\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"headline\":\"Welcome Clarity on RESPA\",\"datePublished\":\"2023-12-05T15:41:31+00:00\",\"dateModified\":\"2023-12-05T15:41:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/welcome-clarity-on-respa\\\/\"},\"wordCount\":735,\"publisher\":{\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"keywords\":[\"Anthony DiDonato\",\"News\",\"Real Estate\",\"tips\"],\"articleSection\":[\"News\",\"Real Estate Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/welcome-clarity-on-respa\\\/\",\"url\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/welcome-clarity-on-respa\\\/\",\"name\":\"Welcome Clarity on RESPA - 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Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that \u201cperfect\u201d property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently. When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting \u2013 or exceeding \u2013 his clients\u2019 expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame. For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania\u2026 call Anthony DiDonato.\",\"sameAs\":[\"http:\\\/\\\/www.anthonydidonato.net\"],\"url\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/author\\\/admin\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Welcome Clarity on RESPA - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/#article","isPartOf":{"@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/"},"author":{"name":"admin","@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#\/schema\/person\/964792b6994e8cc4cbddc36ad4824908"},"headline":"Welcome Clarity on RESPA","datePublished":"2023-12-05T15:41:31+00:00","dateModified":"2023-12-05T15:41:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/"},"wordCount":735,"publisher":{"@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#\/schema\/person\/964792b6994e8cc4cbddc36ad4824908"},"keywords":["Anthony DiDonato","News","Real Estate","tips"],"articleSection":["News","Real Estate Tips"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/","url":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/","name":"Welcome Clarity on RESPA - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania","isPartOf":{"@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#website"},"datePublished":"2023-12-05T15:41:31+00:00","dateModified":"2023-12-05T15:41:32+00:00","breadcrumb":{"@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.anthonydidonato.net\/wordpress\/welcome-clarity-on-respa\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"http:\/\/www.anthonydidonato.net\/wordpress\/"},{"@type":"ListItem","position":2,"name":"Welcome Clarity on RESPA"}]},{"@type":"WebSite","@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#website","url":"http:\/\/www.anthonydidonato.net\/wordpress\/","name":"Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania","description":"Properties and Real Estate for Sale","publisher":{"@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#\/schema\/person\/964792b6994e8cc4cbddc36ad4824908"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/www.anthonydidonato.net\/wordpress\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"http:\/\/www.anthonydidonato.net\/wordpress\/#\/schema\/person\/964792b6994e8cc4cbddc36ad4824908","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-content\/uploads\/2020\/03\/anthony-110x150.jpg","url":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-content\/uploads\/2020\/03\/anthony-110x150.jpg","contentUrl":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-content\/uploads\/2020\/03\/anthony-110x150.jpg","caption":"admin"},"logo":{"@id":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-content\/uploads\/2020\/03\/anthony-110x150.jpg"},"description":"For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. 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