Is Our Arrangement with Clear Oak Mortgage RESPA Compliant?

Q: Is our arrangement with Clear Oak Mortgage RESPA compliant?

A: Yes. Clear Oak Mortgage and Ashby & Graff operate as divisions under the same corporate entity, and our structure fully complies with the Real Estate Settlement Procedures Act (RESPA) and all applicable federal and state laws. Compliance is not just important to us — it is paramount.

We have a formal Affiliated Business Arrangement (ABA) in place that has been vetted to ensure it meets all RESPA requirements. Under this arrangement:

1. No kickbacks, no referral fees, no “things of value.”

   Ashby & Graff associates will never receive money, gifts, discounts, stock, trips, or any other thing of value for referring clients to Clear Oak Mortgage. Even something as small as a cup of coffee or stick of gum is prohibited if tied to a referral.

2. Mandatory disclosure at the time of referral.

   You must provide clients with the Affiliated Business Disclosure Statement (ABDS) at the exact time you make the referral — not later in the transaction. This ensures clients are informed up front about our ownership interest.

3. Client choice is absolute.

   You may never require, suggest, or imply that a client must use Clear Oak Mortgage. Clients must always be free to shop for and choose the lender or service provider they prefer.

4. Transparency and documentation.

   Keep a record of the ABDS delivery and any related communications. Treat your notes as if they could one day be reviewed by a regulator or in court.

Why this matters:

RESPA, enforced by the Consumer Financial Protection Bureau (CFPB), strictly prohibits kickbacks, referral fees, and other arrangements that limit consumer choice or inflate settlement costs. Violations can result in:

• Federal fines up to $10,000 per violation
• Imprisonment up to 1 year
• Loss of real estate license
• Permanent reputational damage

Our compliance policy exists to protect you, our clients, and the brokerage. As compliance expert Summer Goralik says, “Always be complying” is the real secret to long-term success in real estate.