01/21/2008
We have paid cash bonuses to customers for referring friends to us to open a checking account. Do we report this bonus on a 1099MISC as a miscellaneous bonus (for bonuses over $600) or on a 1099I as interest(for bonuses over $25)?
11/12/2007
We are having a "new account sale" where we offer a gas card for opening a new account. What are the stipulations on paying the employees of the gas stations a flat referral fee for the day of the sale?
11/05/2007
We are looking into setting up a referral and rewards program for our HELOC Visas. We would like to both give our members a $50 gift card upon closing of a HELOC, as well as pay out $50 gift cards for referrals that end up booking. I hear different stories about limitations being either $25 or $600. Are there limitations? What would the dollar amount be?
05/14/2007
We have a mortgage originator in our mortgage division that would like to enter a co-op advertising agreement with a builder in a new subdivision. The bank would like to commit approximately $1000 each month for advertising as the subdivision's exclusive lender. The advertising will consist of ads on signs, billboards and fliers listing the builder, one realty company and one lender. The bank's advertising budget will be reflective of the ads, i.e. if one-fourth of a $400 ad, the bank will pay $100 for their section. However, in order to spend the money on the advertising, the bank would like to recover the costs of the ads by deducting a portion of the advertising from the originator's commission payment. I get nervous anytime you mention putting a realty company and a mortgage lender jointly in an ad, due to RESPA concerns. Would this situation fall under the exemption in Sec. 3500.14 (g)(vi)? I also assume that we would need an agreement with our originators for recovery of the fees from their commission.
04/23/2007
We are running a mortgage promotion, "Get pre-qualified and get $50." Can we offer the same to real estate agents, "Refer a client for pre-qualification and get $50" or would that be a violation of RESPA?
04/16/2007
Some of my loan officers split the cost of advertising with real estate offices. Some examples are billboards, website links and subdivision advertising in home sale books. If we are worried about RESPA violations, does it matter if we make the check out to the real estate office instead of the advertising company? Does it matter what the description says on the invoice?
04/16/2007
Some of my loan officers split the cost of advertising with real estate offices. Some examples are billboards, website links and subdivision advertising in home sale books. If we are worried about RESPA violations, does it matter if we make the check out to the real estate office instead of the advertising company? Does it matter what the description says on the invoice?
03/26/2007
Is there any restrictions on giving a customer a bonus, such as a $100.00 gift card, for opening a home equity line or loan?
10/09/2006
We want to offer premiums for new accounts, deposits and loans. What are the rules pertaining to this?
02/27/2006
A mortgage company has approached our bank wanting to pay a specific employee a referral fee, if we would forward real estate loan applications we have turned down to them. I do not see how this is a legal process given Section 8 of RESPA's prohibition of referral fees. The only way I can see it would be legal, is if forwarding the application to the mortgage company would not be defined as a settlement service. I think it would be.