Affiliated Business Disclosure for HELOC Referral

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Question:

I'm trying to confirm that if our affiliated mortgage company refers a customer to the bank for a HELOC, that we need to do the Affiliated Business Arrangement form? I know it is required for a Home Equity "Loan" referral, but want confirmation on lines of credit.

Answer:

HELOCs are covered under the provisions of RESPA. They only have disclosure exemptions under 3500.7(f), 3500.8(a) and 3500.21(a).

First published on BankersOnline.com 8/29/05