We are an intermediate size bank and we would like to offer our all our employees an incentive program for referral of residential loans by our ban employees to our MLO's. Can this be done? will there be a cap on the amount that each employee may receive annually. The amount will be the same regardless of the amount of the loan to keep it simple.

I appreciate your guidance.

It would subject all employees to the lender compensation rules found in 1026.36.

36(a) Definitions
1. Meaning of loan originator. i. General. A. Section 1026.36(a) defines the set of activities or services any one of which, if done for or in the expectation of compensation or gain, makes the person doing such activities or performing such services a loan originator, unless otherwise excluded. The scope of activities covered by the term loan originator includes:

1. Referring a consumer to any person who participates in the origination process as a loan originator.

Very much appreciated.