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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 110600
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Curious when it is legal for one mortgage loan officer in CA

Customer Question

curious when it is legal for one mortgage loan officer in CA to pay a referral fee to another mortgage officer is they refer a lead/loan that was declined?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Have you talked to a lawyer yet?
Customer: nope
JA: Anything else you think the lawyer should know?
Customer: nope
Submitted: 2 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Section 8a of RESPA, prohibits giving and receiving any fee, kickback, or thing of value for the referral of settlement service business and carries up to a $10,000 fine and up to 1 year in jail for violations of this provision. So it is pretty much illegal for them to collect such fees for referring business to another lender.

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