Skip to content
BOL Conferences
Thread Options
#1896504 - 02/12/14 06:58 PM mortgage application referral & ECOA
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
Currently the bank does not make mortgage loans so we have a program where we can refer an applicant to one or both relationships. (#1 is a mortgage broker #2 is another bank in the area). In the case of #1 we provide to the broker the 6 basics things needed for an application:
• Borrowers full name
• Borrowers monthly income
• Borrowers social security number
• Property address
• Estimate of value of the property
• Loan Amount
Usually in this case the relationship then is managed by the broker... the only additional communication we have is if the deal gets funded then we receive minimum compensation for the work performed.

My question, if we never receive compensation then, we assume the loan was declined or the customer did not accept... Do we have any AAN responsibilities?

Return to Top
Lending Compliance
#1896506 - 02/12/14 07:00 PM Re: mortgage application referral & ECOA Chocaholic
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
No, but you are receiving illegal referral fees under Section 8 of RESPA. You have to do a whole lot more than that to earn any compensation - minimal or otherwise.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1896532 - 02/12/14 07:31 PM Re: mortgage application referral & ECOA rlcarey
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
Thank you,in hindsight I did over simplify the amount of work done, we counsel applicants in the loan application process; we do analyze debt & income to determine potential loan amt ; in addition we also discuss all programs applicant may be interested in and which they may also qualify and we complete an anti-steering worksheet with the various programs of interest to the applicant;we also prepare and send out VO's, collect tax returns if self-employed or at least provide a list of all other documentation needed... we do not provide advance disclosures ...all of this gets sent to the broker &/or bank

This I believe would take us out of the RESPA section 8 violation...do you agree?

Return to Top
#1896540 - 02/12/14 07:38 PM Re: mortgage application referral & ECOA Chocaholic
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
I would only rely on the opinion of my own legal counsel for that answer once they had an opportunity to review the written broker agreement that you have with these creditors.

The CFPB has started hammering arrangements for Section 8 recently.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1896593 - 02/12/14 08:44 PM Re: mortgage application referral & ECOA rlcarey
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
great, thank you for the heads up!

Return to Top
#1896616 - 02/12/14 09:22 PM Re: mortgage application referral & ECOA Chocaholic
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
I also assume that the people in your bank that handle this process are registered MLO's.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1897642 - 02/15/14 01:49 AM Re: mortgage application referral & ECOA rlcarey
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
yes they are..

Return to Top

Moderator:  Andy_Z