RESPRO Conference Tackles Compliance Issues

RESPA, Affiliated Business Laws Met With Varied EnforcementWASHINGTON, April 4 /PRNewswire/ — It seemed everybody at the Real Estate Providers Council (RESPRO) conference wanted to learn the myriad of state laws governing affiliated businesses.

“There’s been an increase in affiliated business agreements and in doing it right,” said Bob Jaworski of Reed Smith LLP in Princeton, N.J.

Affiliated business practices dominated the second of the three-day RESPRO conference at the Mandarin Oriental Hotel. More than 300 members featuring real estate broker-owners, real estate franchisers, mortgage lenders/brokers, title insurers/agents, home builders, home warranty companies and other settlement service providers throughout North America were eager to learn how they could prosper together.

“You get to understand the other person’s perspective to see what they’re dealing with,” said Rose McCubbin of Affiliated Title Management in Baltimore.

RESPRO chairman Brian Levy said rising interest in affiliated businesses among members reflects the growing national trend.

“It’s an important alternative,” he said. “A lot of members have shown that’s what they would like, but one-stop shopping, while a good thing, is not the only thing.”

Industry leaders attended seminars ranging from real estate agents attitudes towards mortgage lenders to the do’s and don’ts of RESPA regarding affiliated businesses and joint ventures. There were roundtable discussions on cross marketing, regulatory compliance and state legislative issues.

Jaworski’s one-hour workshop on the “State Regulatory Environment for Affiliated Businesses: the New Dynamic” touched a hot button issue, though. More than 100 people jammed the conference room, with many lingering afterwards, to discuss their state’s issues.

Turns out, some states enforce RESPA differently. There was no generic solution by panelists, just plenty of discussion on compliance. Mostly, questioners want to erase gray regulatory lines concerning affiliated business practices.

“The convenience of one-stop shopping; state [regulators] doesn’t see that has a negative. They see it as a positive,” Jaworski said. “However, if they feel that consumers are being steered . . . that’s when they want to get involved.”

An afternoon seminar on how to train employees on RESPA was also met with enthusiasm by members, who often bypassed moderators to debate subjects among themselves much like the well-attended roundtable discussions.

Moderator Richard Blair, a professional mortgage consultant from Glendale, Ariz., said ignorance by salespersons of RESPA is the biggest problem facing affiliated businesses.

Those questions will surely be answered on Wednesday, though. HUD’s RESPA Enforcement Director Ivy Jackson and Erin Toll, a deputy commissioner of the Colorado Insurance Dept. that oversees RESPA enforcement, address the conference’s final session. House Financial Services Committee Chairman Michael Oxley’s keynote remarks will also include RESPA.

For more information on RESPRO’s conference, contact Rita Reynolds at (703) 919-2944.