Is Fidelity's TransactionPoint facilitating “reimbursements” to brokers from afilliated services?

I recently came across a new twist – but the song sure sounds the same.


Get this: Fidelity’s TransactionPoint unit is facilitating “reimbursements” to brokers that order its affiliated services and in some cases, for other providers who are participating in the same business strategy. It’s my understanding that HUD’s RESPA unit is evaluating complaints regarding this strategy. But any way you look at it, it’s the same old song — brokers are getting a payback for using chosen affiliated services.


RESPA OBSERVER is investigating what appears to be yet another tool to pay brokers for their participation in a scheme to funnel business to Fidelity’s TransactionPoint affiliated services.


Most brokers – to their credit - are wisely refusing to enter into this relationship, which involves a payback of what appears to start at around $20 per transaction and goes upwards of hundreds of dollars per transaction for clearly defined RESPA-protected settlement services.


Since we in the industry tend to have short-term memory loss, I will remind you that in 2007 First American Title Insurance Co. agreed to settle allegations by the Minnesota Department of Commerce and HUD that it created 35 sham businesses designed to generate referrals from real estate agents and brokers in Minnesota.

While First American paid $500,000, “The First American action only dealt with one side of the Affiliated Business Arrangements relationship,” the commissioner of the Minnesota Dept. of Commerce Glenn Wilson said. “There will be actions taken on the other side,” against the referral partners (over 600 agents, brokers and develo pers.)

RESPA OBSERVER is identifying and confirming the names of the handful of brokers that agreed to participate in this illegal strategy, and we’ll be reporting on our findings in upcoming postings.

Stay tuned!