04/16/2007
We want to sell mortgage applications (received online) that we deny to a subprime lender. What are the compliance issues that we will encounter?
10/09/2006
I recently was assigned the task of reviewing all our bank's loans for documentation and compliance errors. My question is on a 2nd mortgage home equity loan do we need the affiliated business arrangement when we make the referral to our title company that is owned by a board member? We do the ABA on the refi and purchase side but I have not seen the ABA in any home equity files that I have reviewed.
10/09/2006
We want to offer premiums for new accounts, deposits and loans. What are the rules pertaining to this?
05/22/2006
We refer customers to an outside vendor for Merchant Services. The company we deal with has created an incentive program for these referrals. They have submitted one of our employees a check in the amount of $50 for a referral that resulted in a sale. I have read and understand the RESPA implications in regards to referrals in the mortgage lending area, but what about the Deposit side of the bank? Do we allow the employee to accept the check?
05/08/2006
We have a new mortgage lender and she would like to take the realtors to lunch so they can get to know her. If you follow RESPA to the rule, I would say no, you cannot do this as the ultimate goal is so they refer business to you. However, I have also heard if it is a business lunch and not a regular or expected occurrence you can do this. Are there any situations where this can be done?
03/06/2006
We currently send our mortgages for processing to a "Big" Financial Institution. Customers are complaining, and we are looking for another way to do them. One idea is to send them to a Mortgage Broker to process. The question we have is "Can the Mortgage Broker pay us a fee for the referral?"
02/27/2006
We are looking into setting up a referral arrangement, with a local mortgage company, on referring residential mortgages for a piece of the yield spread. Does this need to be a disclosure on the HUD-1 form? Or is there another way to handle this?
12/01/2005
Question: We have made a construction loan to a developer. The loan officer now wants to motivate the developer's customers to come to our bank for their mortgage loan.
11/21/2005
Can a mortgage lender pay a referral fee to a mortgage broker under RESPA?
10/17/2005
I have two questions -- <ol><li>Can you give a referral fee to someone who has given you a referral for a loan (i.e., an accountant, apartment locators, etc.)? If you can give referral fee what are the guidelines (is there ia cap, etc)? <li>Point commission for the Loan Officer -- how much can you charge legally (is there a cap)? I normally see "2" on front and back, but when you have a sub-prime lender, how fair is that since the borrowers are already in financial straits? </ol>I would appreciate hearing from you. Can you let me know if there are compliance agencies that can advise a small mortgage broker company without charging very high fees?