Referral Fees For Commercial Loans

<a href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=2&slot=1" target="_top"><img src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=2&slot=1&keyword=NULL" border="0"></a>


Site Map Our Sponsors Home

Compliance Gurus
Operations Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus

Print Friendly!

Email This Article!

<a href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=34&slot=1" target="_top"><img src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=34&slot=1&keyword=NULL" border="0"></a>

Referral Fees For Commercial Loans
by David Dickinson, BOL Guru
BIO AND CONTACT INFO

Question:Do you know of any regulations that would prohibit a thrift from paying referral fees (equal to 25 basis points) to a lumber company for referring speculative construction loan business to the thrift? These are commercial ventures.

Answer: If these are commercial buildings that are being constructed, I am not aware of any prohibition. If these are residential homes, RESPA section 8 prohibits referral fees.

You may want to review a few memo's from the FDIC on this.

The first is FIL 21-99 at: http://www.fdic.gov/news/news/financial/1999/fil9921.html

The second is FIL 103-99 which can be found at: http://www.fdic.gov/news/news/financial/1999/fil99103.html

First published on BankersOnline.com 11/18/02

Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking

BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us

BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.