Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Please let me know if you have any additional questions related to this issue. Also, please positively rate our conversation so that I may receive credit for my research and response.
Thanks for your reply. To clarify, I am a mortgage officer at a national bank. The lead generation company isn't a broker - they only provide the contact information and do not discuss rates, terms or anything at all with people who submit their info. I have heard very different info on this matter. Most people I have consulted say as long as there are no fees tied to a particular loan closing, this would be within RESPA guidelines.
I also did some research, finding this particularly specific document from the American Bar Association: http://www.americanbar.org/content/dam/aba/publishing/rpte_ereport/HowardLax.authcheckdam.pdf
Please let me know if this clears up anything. Thank you very much, Kirk.
Hi David -
I actually have read that article before. In fact, it says just as I did that Section 8 of RESPA prohibits any type of referral fees regardless of whether these referrals result in actual loans.
As long as you are staying away from a "referral fee", or stay within one of the exceptions or have a real estate transaction that doesn't fall into a RESPA regulated transaction, you can be legal.
I think the article is a good outline to follow.
Great, thank you Kirk!