I am a loan officer and I am curious if it is legal for me to advertise and announce that I give good amount of referral fee after I close the transaction to people who recommends my services? I know that if it is a real estate agent it is possible...I'm not sure about people from the mortgage industry if we can do the same ads for referral commision
2006-12-08 02:29:52 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I am not sure where you get your information but it is my understanding, as I am a mortgage broker and a real estate agent, you CAN NOT give referrals to Realtors or receive them. It is a violation of RESPA! As far as I know, you can offer a gift to the client at or after closing, but not to one who referrs you business. If you want to send gifts to those who refer you business, don't advertise it and just send them with a letter thanking them for referring you business. Let me know if you have different information and where it comes from.
I did just see in the paper about a week ago a Realtor advertising this exact thing saying refer me clients and I will give you a gift card. I also heard her broker has just started cracking down on all agents and their advertising...It could be a direct result of this ad. I would suggest not advertising this since it could land you in hot water. Besides, do you really think it will make people send clients your way?
2006-12-08 02:36:47 · answer #1 · answered by homes_az 2 · 1⤊ 0⤋
Referral fees on residential mortgages are a violation of RESPA. You will lose your license if you do it. Building referral relationships with realtors and builders is not a violation of RESPA, because even if you become the preferred broker in those relationships, the customer still has the option to go to someone else. You can take a realtor to lunch on Fridays, but you cannot do it under the pretense of a quid pro quo. Your referral has to be done separately from the relationship building.
2006-12-08 02:47:48 · answer #2 · answered by togashiyokuni2001 6 · 1⤊ 0⤋
Yes it is illegal. It violates RESPA guidelines that govern all loan officers. It is commonly done by many loan officers, but you cannot advertise it. When you do it, it is more of an "appreciation" gift, not a referral fee.
2006-12-08 02:50:49 · answer #3 · answered by flamingojohn 4 · 0⤊ 0⤋
I even have labored as a senior loan officer for seven years. I now artwork as an account govt. i'm the guy that usually comes around on your internet branches / banks and fund the loans that are complicated as hell to do :). in my view, i think of you could throw him an volume of around $250. Understandably, you does not have the loan with out him, yet he will additionally tutor gratitude and be grateful you presented him any capital in any respect. $250 is a gracious volume thinking it is your occupation and not his.
2016-10-17 23:44:59 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Sounds like a kick-back to me, and as far as I know, it's strictly illegal. Check it out.
2006-12-08 02:46:33 · answer #5 · answered by Kathleen M 4 · 0⤊ 0⤋
Depends upon where you are. Check state law.
2006-12-08 02:32:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋