Gift Cards for Loans

Answered by:

Question:

One of our mortgage loan officers wants to do a mailing to potential loan customers offering a $100 gift card to use at local retailers. What issues come into play with this?

Answer:

Answer by Randy Carey:Basically, if the benefit of the gift is going to the borrower - no issues.

Answer:

Answer by Andy Zavoina:There is no RESPA issue, but there may be tax reporting requirements here. It sounds like these are not discounts, but cash equivalents.

First published on BankersOnline.com 10/29/07