So the referral fee would then have to be included in the points and fees since its compensation for that transaction? I'm not sure, as I haven't gotten that far yet.
And would that teller then have to be registered as an LO? No, see page 351. "The Bureau is adopting....to provide that a loan originator must be registered or licensed when required by State or Federal law, including the SAFE Act,..." If the teller does not meet the 2-prong test under the SAFE Act, then they do not have to be registered. The referral in anticipation of a referral fee or bonus, does, however, make them a loan originator under Reg Z and the restrictions on compensation will apply.
Edited by Dani York, CRCM (02/07/13 10:49 AM)