In our opinion, some brokers may be about to experience their worst nightmare because they may be violating HUD’s RESPA laws. We have just learned that Fidelity actively marketed Transaction Point to brokers encouraging the use of its pay per click system in settlement services as a way for the broker to generate revenue. One Keller Williams broker is publicly calling this a “pay per click system.”
Have these brokers been assured by Fidelity or others that accepting fees for orders through Transaction Point is RESPA compliant?
Has Fidelity indemnified brokers in writing, in the event that this “pay per click system,” as the Keller Williams broker calls it, is or is not RESPA compliant?
Could there be a possible class action lawsuit filed? Are there home sellers or buyers that were not informed that the broker received a fee in exchange for an order placed through Transaction Point on a transaction involving their home? Will Fidelity indemnify brokers against such a lawsuit?
Did the Fidelity/Transaction Point program have a self-serving interest?
We are in receipt of correspondence from Keller Williams about this practice, and will be writing about it in our next article.
We’d like to hear from you. Please share any insight and continue to keep us alerted to industry practices.