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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 16396
Experience:  Experienced Licensed Attorney
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I was recently asked by a client to pay for his application

Customer Question

i was recently asked by a client to pay for his application fee. My company will not do so. I cannot find anything that says I cannot do so, however, I'm not sure? Is it legal for me to pay something for my buyer or to give a 'gift' to the buyer and if so, how much is legal. How about giving a gift to his friend who referred him.
Submitted: 13 days ago.
Category: Legal
Expert:  Alex J. Esq. replied 13 days ago.

Hello. My name is Alex.
Thank you for your question.
I will be happy to provide you with information you are seeking for educational purposes only.

What profession are you practicing?

Customer: replied 13 days ago.
i'm a mortgage specialist.
Customer: replied 13 days ago.
i was under the impression that it was fine for me to do things for the 'client' even though I am not permitted to give referral fees . I need clarification please
Expert:  Alex J. Esq. replied 12 days ago.

Thank you for your follow up.

I cannot comment on your specific case, but generally under RESPA it would be illegal for a mortgage specialist / broker to pay any fees / costs on behalf of the client and also it would be illegal to provide any gifts for the referrals under the RESPA.

I wish you the best of luck!

Expert:  Alex J. Esq. replied 12 days ago.
Customer: replied 12 days ago.
Please provide the verbiage and where to find this info in the RESPA law. I do not believe this is fully accurate. I believe mortgage Lenders and brokers can pay fees on behalf of the borrower and I believe gifts can be given. The answer is to general. I need specifics please. Please show me where it says what you ate telling me in the law
Expert:  Alex J. Esq. replied 12 days ago.

Thank you for your follow up.

This service is limited to general information and you should always seek help of a local attorney if you are in need of any legal advice.

Generally, here is the link to the part of the RESPA that prohibits any and all kickbacks, gifts, etc...:

https://www.law.cornell.edu/uscode/text/12/2607

I wish you the best of luck!

Expert:  Alex J. Esq. replied 11 days ago.