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Mortgage Broker Looking for Answers

Answered by: 
Dan Persfull

Question: 
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?
Answer: 
  1. This document should answer this question for you. It's lengthy, but worth the read.
    Regarding Lender Payments to Mortgage Brokers

  2. Commission caps will most likely be governed by your state laws.

Start with you your state's Department of Financial Institutions - if they do not regulate brokers in your state, they can direct you to the department that does, and they would be able to help you.

There are also several Compliance Consultants on BOL Vendor Connect.

First published on BankersOnline.com 10/17/2005

First published on 10/17/2005

Filed under: 
Compliance
Lending
Filed under compliance as: 
Referral
Filed under lending as: 
Referral

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