This should be clear to me but it's clear as mud this morning: My bank owns a mortgage company. We want the mortgage originators to ask their applicants if they are interested in having a home equity line of credit. If the applicant says yes, then their information will be passed on to the bank for consideration. My bank wants to pay the mortgage originator $25-$50 for each HELOC that closes. Can we do this? If the bank cannot pay the referral fee, the mortgage company could pay it's own employees couldn't it? And, last question, is the Affiliated Business Arrangement Form needed?

I don't believe the bank could pay a referral fe to the employees of the mortgage company, but the mortgage company could pay its own employees a fee. And an Affiliated Business Arrangement disclosure would be required, since mortgage company customers are being referred to an affiliate.