First, let me also thank you for your many contributions to the board.
Second, I have to disagree with you about whether it is a violation of RESPA to require someone to get approved with a designated mortgage broker. As you undoubtedly know, RESPA prohibits any required use of a “settlement service”. HUD regulations define “settlement service”, in relevant part, as follows:
“Settlement service means any service provided in connection with a prospective or actual settlement, including, but not limited to, any one or more of the following:
(1) Origination of a federally related mortgage loan (including, but not limited to, the taking of loan applications, loan processing, and the underwriting and funding of such loans);
(2) Rendering of services by a mortgage broker (including counseling, taking of applications, obtaining verifications and appraisals, and other loan processing and origination services, and communicating with the borrower and lender);”
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“Qualifying” sure sounds like “rendering of services”, “taking of applications”, “obtaining verifications” and/or “other loan processing and origination services” to me.
