About That Pyramid

Expert, localized Los Angeles answers provided by Heather Roy

About That Pyramid
	Dear Edith: In reading your response to R.H. concerning the “Mortgage Payment Pyramid” I think you missed a key point. It appears the mortgage company is paying R.H. a referral fee for providing them with new customers. The mortgage company for paying referral fees and possibly R.H. for accepting referral fees are in violation of Section 8 of RESPA.

	That company doesn’t seem to be acting as a mortgage lender, in which case it wouldn’t violate the federal Real Estate Settlement and Procedures Act, but thanks for an interesting thought.
	Edith Originally published on August 14, 2005

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