The term “affiliate” means any company that controls, is controlled by, or is under common control with another company. Plaza defines an “affiliate” company to include:
- Companies that control, are controlled by, or are under common control with another company
- Companies that are under common ownership; regardless of the percentage of ownership
- Companies where the shareholders and/or officers and/or principals (or their relatives) hold any interest in another mortgage or real estate business
- Companies where the shareholders and/or officers and/or principals (or their relatives) hold any interest in a third-party settlement service such as credit reporting, appraisal, settlement/escrow, or title
- Any trust in which an officer, shareholder, employee or agent of your organization has served as trustee or in a similar capacity
- Any written agreement that provides financial benefit to the company for performing some portion of the settlement of the loan
Examples include but are not limited to:
- Company handles their own escrows/settlement under an agreement with the title company, for which they are entitled to compensation
- Company performs some portion of the title work, for which they are entitled to compensation