Is Your Mortgage and Real Estate Joint Venture Putting You at Risk? Ask Yourself These 5 Questions.

A joint venture can put your business at risk if there’s even a hint of “steering” and a violation of the Real Estate Settlement Procedures Act (RESPA). How do you help ensure you’re in compliance? Ask yourself these five key questions:


  1. Does your joint venture comply with the U.S. Department of Housing and Urban Development’s Ten Factor Test? Compliance with all 10 factors is not a requirement, but a joint venture would be wise to comply with the guidelines.

  2. Is your joint venture set up as an independent third-party company with its own operating agreement in place?

  3. Does your joint venture maintain independent operations, staffed with its own employees and own office space, equipment, phone numbers and vendors?

  4. Do you disclose the relationship between the lender and joint venture to consumers, and ensure they know they have the right to do business with whomever they wish?

  5. Do you implement a customer satisfaction survey by a third party to immediately assess the consumer’s reactions, including whether they felt pressured to use the joint venture?

Strategic Compliance Partners (SCP) — a leader in mortgage compliance management —can help you create and maintain a secure and compliant mortgage joint venture compliance program. Our solution JVerify is a premier compliance management system specifically designed to meet the compliance challenges of real estate and mortgage joint ventures at start-up and throughout the life of the joint venture. It includes protocols designed to prevent unlawful steering; annual risk assessments; review of marketing and advertising materials to ensure compliance with applicable laws and regulations; and client surveys that provide general feedback and monitor RESPA compliance.

For more information on JVerify, please contact Leslie Benjamin at or 301-578-6002