Government Gets Tough on Realty Settlement Kickbacks
Author: Diana Heeb Bivona
Kickbacks and payoffs among real estate agents, title and escrow companies, lawyers and mortgage lenders for referrals on home buyers’ mortgages or closing services aren’t openly discussed, but they do exist. And, the government is backing an aggressive campaign to stamp out illegal referral-fee schemes. At the end of November, HUD had completed 12 major kickback settlements this year alone. In 2004, there had been only 2.
The Federal Housing Commission is sending a clear message that they will aggressively investigate those who give as well as receive kickbacks. They are even considering the addition of a web site where people can report referral-fee schemes to federal investigators.