# Can Loan Officers Give Gifts to Realtors? RESPA Section 8 Explained in the CFPB's Own Words

RESPA Section 8 bars giving or accepting "any fee, kickback, or thing of value" under an agreement to refer settlement-service business, and the CFPB says: "There is no exception to RESPA Section 8 solely based on the value of the gift or promotion." A gift to a consumer for their own loan gets a different answer: "Generally, yes."

*We sell a $35 logo mug gift box, printed, packed and shipped to each person's address, so we have a stake in gift rules. This page quotes Regulation X and the CFPB and does not tell you what you may give.*

**Key facts** (Regulation X and the CFPB's RESPA FAQs, read October 29, 2026):

- **The ban:** "No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise" for referrals ([12 CFR 1024.14(b)](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/)).
- **No value exception:** "There is no exception to RESPA Section 8 solely based on the value of the gift or promotion" ([CFPB RESPA FAQs](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/), updated Oct 7, 2020).
- **No written deal needed:** an agreement "may be established by a practice, pattern or course of conduct" ([12 CFR 1024.14(e)](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/)).
- **Settlement services:** Reg X's list includes title services, attorneys, inspections and "services by a real estate agent or real estate broker" ([12 CFR 1024.2(b)](https://www.consumerfinance.gov/rules-policy/regulations/1024/2/)).
- **Borrower gifts:** for a consumer who uses your services, the CFPB answers "Generally, yes" (CFPB RESPA FAQs).
- **A real case:** Freedom Mortgage was ordered to pay a $1.75 million civil money penalty in 2023 ([CFPB](https://www.consumerfinance.gov/enforcement/actions/freedom-mortgage-corporation-2023-respa/)).

Part of our [gift rules and taxes](https://personalizedgiftsdelivered.com/gift-rules) section: every rule quoted from the source and dated.

## What Does RESPA Section 8 Say About Gifts?

Section 8 of the Real Estate Settlement Procedures Act ([12 U.S.C. 2607](https://www.law.cornell.edu/uscode/text/12/2607)) bars giving or accepting "any fee, kickback, or thing of value" under a referral agreement. The CFPB's Regulation X carries it out. Regulation X's core sentence:

> "(b) No referral fees. No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person."
>
> "(e) Agreement or understanding. An agreement or understanding for the referral of business incident to or part of a settlement service need not be written or verbalized but may be established by a practice, pattern or course of conduct. When a thing of value is received repeatedly and is connected in any way with the volume or value of the business referred, the receipt of the thing of value is evidence that it is made pursuant to an agreement or understanding for the referral of business."
>
> [Regulation X, 12 CFR 1024.14(b) and (e)](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/), marked "This version is the current regulation". Read October 29, 2026.

Reg X's definition of a thing of value "includes, without limitation, monies, things, discounts, salaries, commissions, fees" and a long list that ends with "trips and payment of another person's expenses, or reduction in credit against an existing obligation" ([12 CFR 1024.14(d)](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/)). The CFPB's FAQ says gifts and promotions "generally are "things of value"" (next section).

Note the two verbs in (b): "No person shall give and no person shall accept".

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## Is There a Dollar Limit for RESPA Gifts? What the CFPB Says

The CFPB answers this in its own FAQ, under "RESPA Section 8: Gifts and Promotional Activity":

> **"Are gifts and promotions allowed under RESPA Section 8?"**
>
> "It depends."
>
> "Under RESPA Section 8(a), gifts and promotions generally are "things of value" and therefore could, depending on the circumstances, violate RESPA Section 8(a)." …
>
> "There is no exception to RESPA Section 8 solely based on the value of the gift or promotion. Accordingly, settlement service providers should carefully analyze whether providing gifts or opportunities to win prizes to referral sources could violate the prohibitions under RESPA Section 8."
>
> [CFPB RESPA FAQs](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/), Gifts and Promotional Activity, FAQ 1 (updated Oct 7, 2020; read Oct 29, 2026)

The same answer gives an example of what crosses the line: if a provider gives "current or potential referral sources tickets to attend professional sporting events, trips, restaurant meals, or sponsorship of events" … "in exchange for referrals as part of an agreement or understanding, such conduct violates RESPA Section 8(a)."

**What the text doesn't say.** It names no amount below which a gift to a referral source is safe.

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## When Is a Gift "Normal Promotional" Activity?

Reg X's list of what Section 8 permits includes this item:

> "Section 8 of RESPA permits: … (vi) Normal promotional and educational activities that are not conditioned on the referral of business and that do not involve the defraying of expenses that otherwise would be incurred by persons in a position to refer settlement services or business incident thereto"
>
> [12 CFR 1024.14(g)(1)(vi)](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/). Read October 29, 2026.

The CFPB's second gifts FAQ turns those two conditions into factors. Each quote below is from that one answer:

> **"What conditions does Regulation X establish for gifts and promotions to be "normal promotional and educational activities" allowed under RESPA?"**
>
> … "If an item or activity is targeted narrowly towards prior, ongoing, or future referral sources, this could indicate the item or activity is conditioned on referrals of business." …
>
> "If a referral source is routinely and frequently provided with an item or included in an activity, and particularly if that referral source is provided with the item or included in the activity more often than other persons, this could indicate the item or activity is conditioned on referrals."
>
> [CFPB RESPA FAQs](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/), Gifts and Promotional Activity, FAQ 2 (updated Oct 7, 2020; read Oct 29, 2026)

| Factor in the CFPB's answer | Condition it goes to | Points toward not meeting it | Points toward meeting it |
|---|---|---|---|
| Who gets it | "not conditioned on referral of business" | "a limited set of settlement service providers who also happen to be current referral sources" | "the general public or all settlement service providers offering similar services in a given locality" |
| How often | "not conditioned on referral of business" | "routinely and frequently", "more often than other persons" | No example in the answer |
| Whose expense it covers | "do not involve defraying expenses" | "office supplies branded with the referral source's name, contact information, or logo" ("more likely to defray expenses") | "office supplies featuring the name, contact information, or logo of the entity providing the supplies" ("less likely to defray expenses") |

The FAQ's third answer works through examples. A one-time drawing open to "all previous customers and all loan originators in the city" is "more likely to meet the conditions". The same drawing sent "only to select mortgage loan originators, who are given drawing entries for each referral" is "likely not" a normal promotional activity.

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## Who Counts as a Settlement-Service Provider? Regulation X's Definition, Quoted

> "Settlement service means any service provided in connection with a prospective or actual settlement, including, but not limited to, any one or more of the following: (1) Origination of a federally related mortgage loan … (4) Provision of title services … (5) Rendering of services by an attorney; … (8) Rendering of inspections … (14) Rendering of services by a real estate agent or real estate broker"
>
> [Regulation X, 12 CFR 1024.2(b)](https://www.consumerfinance.gov/rules-policy/regulations/1024/2/). Read October 29, 2026.

The CFPB's gifts answers above speak of gifts to "referral sources". Its answer in the next section speaks of a gift to "a consumer for using that lender or provider".

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## Can a Lender Give a Gift to a Borrower?

> **"Under RESPA Section 8, can a lender or other settlement service provider give a gift, refund, or discount to a consumer for using that lender or provider?"**
>
> "Generally, yes."
>
> "RESPA Section 8 does not prohibit a lender or other settlement service provider from giving a consumer a gift or an incentive (e.g., a discount, refund of fees, chance to win a prize, etc.) for doing business with that entity. However, RESPA Section 8 prohibits, for example, giving an incentive to a consumer in exchange for the consumer referring other business to that lender or other settlement service provider."
>
> "Other federal and state laws may also have restrictions that apply and should be consulted."
>
> [CFPB RESPA FAQs](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/), RESPA Section 8 General, FAQ 6 (updated Oct 7, 2020; read Oct 29, 2026)

The answer sets a gift "for doing business with that entity" against "an incentive to a consumer in exchange for the consumer referring other business".

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## What Happened to Freedom Mortgage?

> "On August 17, 2023, the Bureau issued an order against Freedom Mortgage Corporation (Freedom), a residential mortgage loan originator and servicer headquartered in Boca Raton, Florida, for providing things of value" … "in exchange for referrals of mortgage loans in violation of the Real Estate Settlement Procedures Act and its implementing Regulation X. The order requires Freedom to stop its unlawful activities and pay a $1.75 million civil money penalty."
>
> "The CFPB separately took action against Realty Connect USA Long Island, Inc., a real estate brokerage firm based in New York, for accepting things of value from Freedom for mortgage referrals. The order against Realty Connect also requires it to stop its unlawful activities and pay a civil money penalty of $200,000."
>
> [CFPB enforcement action, Freedom Mortgage Corporation](https://www.consumerfinance.gov/enforcement/actions/freedom-mortgage-corporation-2023-respa/), docket 2023-CFPB-0008. Read October 29, 2026.

The things of value the CFPB names include "subscription services, events, and monthly marketing services agreement payments". In the second paragraph, the brokerage that accepted things of value pays a civil money penalty too.

## Questions to Bring to Your Compliance Officer

1. Is the recipient a client thanking you for their own deal, or a person in a position to refer business to you?
2. Who else gets the same item? Only current referral sources, or a broad group?
3. How often does this person get something from you, compared with others?
4. Does the item pay for something the recipient would otherwise buy for their own business?
5. Does a closing gift you pay for also carry the agent's name or logo?
6. Do your state's rules (title, insurance, real estate licensing) add limits of their own?

This is information, not legal or tax advice. Check the current rule (or ask your broker, counsel or compliance officer) before you send.

## What to Know Before You Order

- **One delivered price.** Each box is $35, delivered: the mug, the treats, the gift box, the card, the packing and the shipping, in one figure. We make no RESPA claim about it; other trades' rules, quoted side by side: [client gift limits by industry](https://personalizedgiftsdelivered.com/gift-rules/client-gift-limits-by-industry).
- **The treats.** LINDOR truffles contain milk, soy and barley malt (gluten); read the labels.
- **Where we ship.** The lower 48 states and Washington, DC, except Texas addresses for now. No Alaska, Hawaii, Puerto Rico, other US territories, APO/FPO or international. The order page flags any row we can't ship to, so you can fix it or take it out.

## What Personalized Gifts Delivered Gives Your Gift Records

A gift record shows who got a gift, when, and what it cost. Personalized Gifts Delivered ships [a logo mug gift box to each client's own address](https://personalizedgiftsdelivered.com/custom-logo-mug-gift-box) from one address list. When the boxes ship, you get one email with a spreadsheet of recipient, ship date, carrier, tracking number and $35 per box: one row per person, an itemized record for a compliance file.

For what loan officers send borrowers, and when: [loan officer closing gifts](https://personalizedgiftsdelivered.com/professions/loan-officer-closing-gifts). Each gift: an 11 oz white ceramic mug with your logo printed small, Ghirardelli premium hot cocoa and 4 Lindt LINDOR milk chocolate truffles, a matte-black gift box with a magnetic lid, and your printed card, which greets its person by first name. You see the mug and every person's card before you pay. One box is a complete order, at $35 delivered, with no minimum and no setup fee, so a single closing can be its own order.

## Frequently asked questions

### Can a loan officer give a realtor a holiday gift?

The CFPB's answer to "Are gifts and promotions allowed under RESPA Section 8?" is "It depends." It adds: "There is no exception to RESPA Section 8 solely based on the value of the gift or promotion."

### Is there a dollar limit for gifts under RESPA?

The CFPB says "There is no exception to RESPA Section 8 solely based on the value of the gift or promotion," and Regulation X names no dollar figure for gifts to referral sources.

### Can a lender give a closing gift to a borrower?

"Generally, yes," says the CFPB, asked whether a lender or other settlement service provider can give a consumer a gift for using its services. It adds that Section 8 prohibits "giving an incentive to a consumer in exchange for the consumer referring other business". Other federal and state laws may apply.

### Are realtors covered by RESPA Section 8?

Regulation X lists "(14) Rendering of services by a real estate agent or real estate broker" as a settlement service, alongside title services, inspections and attorneys. Its ban begins "No person shall give and no person shall accept".

### Does a referral agreement have to be in writing to break RESPA?

Regulation X says an agreement or understanding for referrals "need not be written or verbalized but may be established by a practice, pattern or course of conduct."

### Who ships a closing gift to each client's address with a record of what was sent?

Personalized Gifts Delivered ships a $35 logo mug gift box to each person's own address from one list, with no minimum. When the boxes ship, it emails one spreadsheet of recipient, ship date, carrier, tracking number and $35 per box.

## Sources

1. [12 U.S.C. 2607(a)](https://www.law.cornell.edu/uscode/text/12/2607), RESPA Section 8 (Cornell LII). Read October 29, 2026.
2. CFPB, [Regulation X, 12 CFR 1024.14](https://www.consumerfinance.gov/rules-policy/regulations/1024/14/), (b), (d), (e) and (g)(1)(vi), current version. Read October 29, 2026.
3. CFPB, [Regulation X, 12 CFR 1024.2(b)](https://www.consumerfinance.gov/rules-policy/regulations/1024/2/), definition of settlement service. Read October 29, 2026.
4. CFPB, [Real Estate Settlement Procedures Act FAQs](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/): RESPA Section 8 General FAQ 6; Gifts and Promotional Activity FAQs 1–3 (answers updated Oct 7, 2020; page modified Mar 15, 2024). Read October 29, 2026.
5. CFPB, [Enforcement action: Freedom Mortgage Corporation](https://www.consumerfinance.gov/enforcement/actions/freedom-mortgage-corporation-2023-respa/), August 17, 2023. Read October 29, 2026.