Blog Bite: How can a mortgage company and title company form a joint venture without risking a violation of the Real Estate Settlement Procedures Act (RESPA)?

This article posted on our partner site Mondaq.com is a guide to the evaluative criteria used by the Department of Housing and Urban Development (HUD) in determining whether a joint venture between a mortgage company and title company is a “sham controlled business arrangement.”

In sum, the joint venture should operate as an autonomous entity with its own employees and facilities.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!


Written by Alina.