I thought RESPA required a broker to perform a certain minimum amount of work in order to be paid, but I am having trouble finding the list. Does that requirement still exist and if so where can I find it?

Thanks for the link. Now I have more questions. We have an offer from a mortgage company wanting us to refer customers to them. We would provide counseling about the various mortgage products that mortgage company offers, forward customer contact information to the mortgage company, obtain copies of customer's drivers license, tax return and bank statements, and verify employment. We For this the mortgage company would give us $750 per loan closed. I have a bad feeling about this. I feel like this is a glorified referal program and violates RESPA. I would appreciate your comments.

Prior to entering into any such agreement, it should be fully vetted through legal counsel. You will also be responsible for issuing early TIL and the GFE disclosures for the mortgage lender unless you can make arrangements for them to do it within three days of you receiving the application.

This is what concerns me. We won't be taking the application. Somehow, we are to talk to the customer, get their name and phone number, give it to the mortgage company, the mortgage company will take the application and then we are supposed to obtain tax returns and employment verfication, forward them to the mortgage company who then processes and closes the loan. We would not be issuing any disclosures.

Then I doubt if you are doing enough to earn a fee.

Thanks Randy. I always appreciate the clarity you bring to a discussion, even if it results in me having to tell someone that they shouldn't do something. But I rather tell them than have the examiners tell us.

Good Heavens!!!! - we have started a relationship with a mortgage company that will table fund and originate and close in their name. We are taking the application, collecting paystubs, tax returns, counseling, etc, etc, We bought a platform for these 2ndary market loans because we do not escrow and offer PMI on the inhouse platform and its not set up for that. We do not compenstae our employee that takes the application.

The mortgage company is going to be giving my bank around $7,000 - wow! Would that be a section 8 violation? Do we have to account for $7,000 figure?

Do we have to account for $7,000 figure?

Yes, or you are going to be in the same boat as ATL above.