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Roger, Attorney
Category: Business Law
Satisfied Customers: 31788
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Hi, Im interested in buying leads from a mortgage lead generatio

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Hi, I'm interested in buying leads from a mortgage lead generation company but I want to make sure I stay within RESPA rules.

They sell information only, on a per lead basis. What I'd pay isn't connected to any loan closings. For example, if they sell me 10 potential clients information and I don't close a loan, I still pay for the 10 leads.

It is my understanding that a relationship is non-compliant only if I were to give them a fee or pay a percentage based on closed loans. Is this true?
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for your question.

Generally, RESPA regulates mortgage brokers and bankers. If you were a mortgage broker or a banker, your suggested activity would be prohibited under the RESPA.

Section 8 of RESPA prohibits any type of referral fees regardless of whether these referrals result in actual loans. It appears that so long as this referrals are not affiliated or passed on to some type of mortgage broker or lending institution there is no clearly outlined violation of RESPA.

It would be best to have a local attorney review your business plan before engaging in this activity.


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.



Customer: replied 4 years ago.

Hi Kirk,


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:


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.

Roger and other Business Law Specialists are ready to help you
Customer: replied 4 years ago.

Great, thank you Kirk!

No problem and good luck.