Industry Up Date
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Broker Compensation / Home Warranty
HUD/RESPA Interpretive Rule - June 16, 2010
HUD has confirmed in this rule that Real Estate Brokers may be Compensated - paid a Service/Administrative Fee (not a referral fee) - for Placement of a Home Warranty. Certain performance and service criteria are outlined within the Rule.
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What HMS has done . . .
HMS has modified our Member Broker Service Agreement - Compensation Addendum and developed a Warranty Application Worksheet in order to up date our program and procedures to comply with the New Rule.
What you need to do . . .
All Current and New Participating HMS Member Broker Offices must complete and return the new Member Broker Service Agreement and Compensation Agreement Addendum whether you intend or expect to receive a Warranty Administrative Fee or Not. This will allow us to up date and bring our system current to the June 2010 ruling. Payment of a Warranty fee will not be administered without these two documents on file.
Return the 2010 Member Agreement / Compensation Addendum (3 pages) to our Regional Office in Salt Lake City, Utah via fax, mail or email for file and processing - retain a copy for your file.
2010 - HMS Member Broker Forms (07/2010)
HMS Member Broker Service Agreement and Addendum *required*
HMS Warranty Application Worksheet