What Is the Real Estate Settlement Procedures Act (RESPA)?
The Real Estate Settlement Procedures Act (RESPA) is a federal consumer protection law that requires clear disclosure of all mortgage costs and prohibits kickbacks or unearned fees in exchange for referrals of real estate settlement services, to help consumers make informed choices and reduce closing costs.
What Is an Affiliated Business Arrangement (ABA)?
Affiliated Business Arrangement (ABA) occurs when a real estate brokerage, agent, or related professional has a formal ownership or financial connection with another service provider—such as a mortgage lender, title company, or insurance agency.
In these relationships, the brokerage may refer clients to the affiliated business for convenience or as part of a preferred service package. Federal law allows these relationships under RESPA, as long as the connection is clearly disclosed through an ABA disclosure statement and consumers are free to shop for other providers.
What's Happening in the Market Right Now
Today's real estate and mortgage market is seeing increased scrutiny around ABAs. Regulators and industry observers have expressed concern that some affiliated arrangements may limit competition or steer consumers toward one specific lender, potentially reducing access to better rates or terms elsewhere.
As the market evolves, brokerages with ABAs are under more pressure to prove they are acting in the consumer’s best interest—not simply channeling business to an affiliated partner. This shift is driving demand for greater transparency, lender choice, and independent verification of how consumers are connected to financial services.
Why ABAs Are at Risk—and How We Help Mitigate That Risk
ABAs face increasing risk as regulators and consumers challenge practices that appear to "push" one lender over others. When a single lender is promoted too aggressively, it can create concerns about fairness, market competition, and compliance.
Our approach helps lessen that risk by:
- Encouraging multiple lender options for every client to preserve the consumer's lending choice.
- Providing tools and visibility that make lender choice transparent and trackable.
- Train Real Estate Agents to uphold RESPA compliance by ensuring consumers maintain full autonomy of choice—supported by the presentation of at least three to five lender options.
By empowering brokerages and consumers alike, our goal is to safeguard what matters most: trust, compliance, and consumer choice, so that consumers have the best lending choice available.
Our Commitment: Supporting Choice—No Matter the Structure
Our Commitment
Whether a real estate brokerage or lender that operates within an ABA or not, our mission is to protect the customer's right to choose. We believe buyers should always have access to a range of qualified lenders so they can compare options and make confident, informed decisions.
We work with real estate brokerages and lenders of all types to ensure that transparency and consumer choice remain at the center of the process. Our platform bridges the gap—making it simple for real estate brokerages and lenders to demonstrate integrity and for buyers to explore multiple lending options with clarity and confidence. The result is a stronger, more transparent and cost-effective lending experience that empowers consumers to secure a loan that truly fits their needs.