Posted by Charm_AL on 5/17/05 10:06am
Msg #38279

Good Morning!

Hope everyone is busy...

Question on gifts. Is it considered appropriate/professional to acknowledge your favorite SSs with little gifts at Christmas Time? I don't feel I have to, but I'd like to get across that I appreciate their business.

Or to take a local to lunch occasionally? TIA

I know IREP has a strict policy against exchanges of any kind.

Reply by BrendaTx on 5/17/05 10:11am
Msg #38280

Re: Good Morning!-Gifts

Title companies - can receive gifts.
SS's - can receive gifts.

Lenders, nope.

Reply by Art_MD on 5/17/05 10:15am
Msg #38281

Re: Good Morning!-Gifts

With one of my favorite TC, for whom I've done a lot of closings, periodically I call the local pizza place and have them deliver - usually on a Fri. I make sure they know its coming.

Art

Reply by Charm_AL on 5/17/05 10:21am
Msg #38282

Re: Good Morning!-Gifts

Thanks Brenda! What a great idea Art. I made a pan of lasagna and a loaf of garlic bread for an office crew on a crunch day when I sat there and did closing after closing, I knew no one would have time to get anything...they are still bringing that up
The office smelled like an Italian restaurant all day.

Reply by PAW_Fl on 5/17/05 11:02am
Msg #38312

Re: Good Morning!-Gifts

Title companies - can receive gifts.
SS's - can receive gifts.

Lenders, nope.

--------------------------------------------------------

Brenda,

Please explain why you say "Lenders, nope."

Reply by Art_MD on 5/17/05 11:15am
Msg #38316

Re:lenders - no gifts

My 3 cents worth...

It is illegal for a lender to accept kickbacks, gifts, etc. from people involved in loans they are executing. It probably has something to do with RESPA, Fair Lending Practice, and a host of other laws meant to keep down predatory practices (IMHO - isn't working).

Art

Reply by PAW_Fl on 5/17/05 11:31am
Msg #38328

Re: Re:lenders - no gifts

That's only if there is an ability to provide increased financial gains. Since NSA's typically cannot steer work to any lender, there should be no problem in giving loan officers, processors and closers at lenders gifts of appreciation.

When I worked at a major lender, we often received (and gave) gifts from (to) our vendors. Notice I said vendors, not clients. An NSA (or remote closer) is a vendor to the lender, as they are to title companies and signing services.

RESPA prohibits paying or receiving any unearned fee, kickback, or thing of value for the referral of business. Like rebates, it appears these payments are illegal whether or not they are disclosed.

Here are some examples of illegal kickbacks:

1. Payment of a fee by a title insurance company to an attorney or broker for referring business to the title insurance company.

2. Payment of a fee by a mortgage originator to a real estate salesperson for referring business to the mortgage company.

The best definition of an unearned fee is the common sense one which says an unearned fee is any fee paid which is not for the performance of legitimate services actually performed. Steering or referring business to a company is not considered a legitimate service.

Reply by Victoria/FL on 5/17/05 12:08pm
Msg #38335

Re: Re:lenders - no gifts

I agree - when I worked for a lender, we frequently gave gfits to our builders & realtors. In return, we often received gifts from vendors we gave business to: appaisers, title companies, private mortgage insurance companies.

Generally it was a gift that the entire office could use, such as lunch, bagels, donuts, candy...gee, and I wonder why I gained weight all those years...

Reply by Eatha/PA on 5/18/05 9:04am
Msg #38583

Re: Re:lenders - no gifts

Hmmm, could that be why the house I bought passed inspection with a furnace that wasn't working when the lender offered to get the inspection done for me? Lesson learned. . .

Reply by Charm_AL on 5/18/05 9:40am
Msg #38593

Re: Re:lenders - no gifts

our home inspection was done before it was listed and we requested a warranty. What did you do about it? I would have raised a stink with the inspection company!
I believe the inspections are usually paid for by the seller. Some mortgage companies will offer a year warranty and just eat the cost as an attractive incentive to the buyer.

Reply by Eatha/PA on 5/18/05 1:07pm
Msg #38666

Re: Re:lenders - no gifts

The buyer pays for the inspection to get the loan approved, usually with an inspector the lender wants (that's why I made the snide comment about gifts to lenders. . .maybe I should have given a few, eh?). A seller can also pay for an inspection before listing to fix any defects before the buyer's inspector finds them and the seller has to hurry to fix them, or to include a clean inspection report with the listing information.

It was 10 years ago, my first home purchase, FHA loan, I was green as grass. I suspect that the lender got an inspector who would pass it even if it had been a pile of charred timber. The inspector said the furnace worked when he tested it, and how could I prove otherwise? My R/E agent was with the company that managed the property, working both sides of the fence but mostly theirs - I did manage to get him fired for doing that once I found out.

I'm buying my new house, inspection this Saturday - I'm meeting the inspector there and will be carrying a fine-tooth comb!