I’m a Mortgage Loan Officer and my was given a New Purchase home loan referral by my cousin because his bank could not fund the loan. I was able to fund the loan and close the deal total commission off the deal was $7,320.00 and my cut was 75%, so I made $5,490 off the deal....I want to give him part of my commission because he referred the loan to me but don’t know how much I should offer him? Should it be a percentage of the commission? Or just a "Flat rate"? We have a very good relationship and I want to be fair with him and he said he would send me other loans his company is not able to fund, because I have more resources? I just want to be fair to him and not be greedy?
2007-01-19 03:40:39 · 8 answers · asked by Jen G 3 in Business & Finance ➔ Renting & Real Estate
It's not illegal in my state to offer a "referal fee".
2007-01-19 05:20:41 · update #1
I appreciate your integrity and this is something that is worthy of discussion.
Lending laws can significantly inhibit what you offer a person as a referral for a loan. In California for example, a licensed loan officer must share in the duties to share in the proceeds. There is strict guidelines to adhere to.
If this guy is a friend and you do care about him I would work something OUTSIDE of a per arrangement deal. Anything you give him should be a gift and not taxable.
Also, in research I have done I have found that $200 was determined to be a fair amount for a lead.
2007-01-19 04:08:57 · answer #1 · answered by loanman46 2 · 0⤊ 0⤋
I have worked as a senior loan officer for seven years. I now work as an account executive. I'm the guy that always comes around to your net branches / banks and fund the loans that are hard as hell to do :). Personally, I think you should throw him an amount of around $250. Understandably, you wouldn't have the loan without him, but he will also show gratitude and be thankful you offered him any capital at all. $250 is a gracious amount considering it is your profession and not his.
2007-01-19 03:58:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it is not unlawful everywhere because of the fact the different answerer's might assist you to think of. In some states that's completely criminal with finished disclosure to the shopper, in others they have chanced on a criminal way around the regulation. the only thank you to renowned for beneficial is by calling the state genuine sources value the place the Realtor is approved.
2016-10-07 09:53:22 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Well, I can tell you that you will lose your license if you pay ANYONE a fee in Georgia for obtaining a loan. You must check your state's regulations to see if that holds true for you as well. Search your state and "Banking and Finance."
Best of luck
2007-01-19 03:45:38 · answer #4 · answered by David 3 · 1⤊ 0⤋
it is ILLEGAL in every state to offer a referral fee. are you kidding? That's the fastest way to lose your license. You can only offer something if it benefits your borrower. You are exactly the black eye this industry tries to put ice on.
wow
2007-01-19 06:14:45 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I will suggest that $500.00 is fair enough.Referral fees are very common in every state. Good luck.
2007-01-19 04:08:50 · answer #6 · answered by Isabella789 4 · 0⤊ 0⤋
Careful. Your state may not allow you to give anyone anything at all. Check first
2007-01-19 04:08:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I would give him a flat 1000.00. That would be very fair in my opinion.
2007-01-19 03:44:42 · answer #8 · answered by Heatmizer 5 · 0⤊ 0⤋