The Benefits of a Realtor/Lender Joint Venture
(And How to Protect it)

Joint ventures between real estate companies and mortgage lenders were all the rage several years ago — until the Real Estate Settlement Procedures Act (RESPA). Stories about outrageous fines and penalties, and even closures, hit the news, as mortgage brokers and services were investigated by CFPB for violation of RESPA. “Joint venture” because a dirty word around the industry.

Yet with the advent of a new administration in Washington, DC, all this seems to be changing. While RESPA is still very much in force, there is undoubtedly a resurgence for mortgage brokers and lenders to join forces. Here’s why:

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The good new is, joint ventures are popping up again on the real estate landscape. Case in point: Realogy Holdings Corp., the largest full-service residential real estate services company in the U.S., formed a joint venture with Guaranteed Rate, Inc., one of the largest independent retail mortgage companies in the country. The joint venture, Guaranteed Rate Affinity LLC, began doing business in June 2017. Today, homebuilders Lennar and Pulte own mortgage companies, while others have joint ventures with lenders, including KB Home and Stearns Lending.

While the benefits of a joint venture are many, so are the pitfalls. If your business isn’t well versed on RESPA, you could be hit with fines, or worse. Fortunately, there is something you can do to help protect your business, and achieve a successful, lucrative and longstanding partnership.

JVerify is a premier compliance management system designed to meet the compliance challenges of real estate and mortgage joint ventures at startup and throughout the life of the venture. Created by Strategic Compliance Partners — a leader in mortgage compliance management — JVerify 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.

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JVerify is a small foundational expenditure to protect your significant, long-term investment — so you can enjoy the many benefits of your joint venture, today and tomorrow. To learn more, contact Leslie Benjamin at lbenjamin@strategiccompliancepartners.com.

** https://www.questia.com/magazine/1G1-127789081/builder-joint-ventures-several-lenders-are-hot-on

**National Mortgage News, https://www.nationalmortgagenews.com/news/why-more-real-estate-firms-are-now-offering-mortgages